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The pros of modernising your payments infrastructure

20 September - 3 min read

For businesses built in the cloud, pivoting, scaling and expanding to new countries can be achieved at a very low cost. These companies also implement some of the latest systems and processes in payments technology — think instant payments, secure payment networks and the ability for customers to choose from a range of options in how and when they pay. If your company is processing payments using outdated legacy infrastructure, it may be time to invest in modernising your systems. Not only will this allow your business to grow, but the flow-on impacts across your business and the supply chain will see the return on your investment being realised quickly.

In this article, we take a look at the benefits of modernising your payments infrastructure to grow and remain competitive.

Process higher payment volumes

If there’s one positive for businesses out of COVID-19, it’s the uptake in digital payments and rapid growth of eCommerce. When your business has modern payments infrastructure in place, it can handle rapid increases in payment volumes. Cloud payment platforms make it possible to scale system capacity as needed. This means your business can prepare for peak periods such as those before holidays or before the end of the financial year.

Get paid in real-time

Businesses that have people working out in the field know how difficult it can be to get paid on time. Not only does your team need to remember to complete the appropriate processes when a job is complete or goods are delivered, but the financial risk remains with your business. This risk significantly increases once you have delivered goods or services and haven’t been paid. With a cloud-based, integrated payment infrastructure, your business can accept real-time payments

Also known as workflow payments, this system provides the functionality to process the payment as soon as a job is complete or when a preset status is met. A common example of workflow payments is Uber where, once your journey is complete or food is delivered through UberEats, your chosen payment method is debited. By implementing systems to get paid instantly, you’ll strengthen your business’s cash flow and unlock capital that is often tied up in accounts receivable, sometimes for up to 30 days beyond an invoice due date.

Meeting new payment regulations

Payment standards such as ISO20022 or the revised Payment Services Directive (PSD2) can change quickly, with businesses needing to keep up with more robust monitoring and reporting standards quickly. ISO20022, for example, commenced in 2004 but the standard has been updated annually. For businesses with modern payment infrastructure in place, it’s easier for organisations to adapt their systems to meet evolving standards and regulations. And, when larger changes occur, a business that has cloud-based payment systems can develop and test its updated version while running the current version to reduce downtime and customer-facing issues when updates are implemented.

Increase payment security and prevent financial crime

Digital payments have created new challenges in financial crime prevention, with attack methods often evolving as quickly as an organisation’s technology. With modern payments infrastructure, businesses can set up the systems required to quickly identify fraudulent transactions. And with the growth of artificial intelligence (AI) and machine learning (ML), businesses will also have the capability to automate their protection protocols and responses. These automated responses reduce instances of false positives when payment gateways are processing a transaction.

Make your business more productive

One of the biggest benefits of digital technology is the flow-on impacts it can have across a business. For example, by modernising your payment infrastructure with technology that integrates with your existing accounting and ERP systems, you can reduce the amount of time it takes to record transactions, reduce the risk of data entry errors and realise efficiencies in your financial reporting.

Modern payment infrastructure also allows suppliers and customers to collaborate directly and securely through ledger-to-ledger postings, meaning both parties work from a single source of digital truth. By creating efficiencies, your team and customers will have more time on their hands too, which improves your customer and employee experience — both critical parts of keeping your key stakeholders engaged and happy.

Transform your payments infrastructure with Spenda

Spenda’s payment infrastructure makes it easy to process payments. With our integrated technology, your business can improve cash flow, easily collect debt, set up pay-later plans, and get access to working capital. Not only will this make your business’s finances stronger, but it has positive flow-in effects across the supply chain too.

Want to learn more about new innovations that are shaping the future of B2B payments and boosting cash flow management for Australian businesses? Download your free whitepaper copy here.

*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.

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