Strategizing Accounts Receivable To Drive Accounts Payable Modernization

Digitizing and modernizing B2B payments cannot be a one-sided effort. Increasingly, FinTechs and the businesses they serve are pulling double duty with solutions that tackle both accounts receivable and accounts payable friction for each end of the B2B transaction. This week’s look at the convergence of AR and AP explores the strategy of modernizing AR to drive electronic B2B payment behavior on the AP side. Plus, commercial cards dig their heels into adding value for both buyer and supplier.

Wells Fargo, Bill.com Pull Double Duty With Partnership

In a recently-announced tie-up, Wells Fargo and Bill.com are collaborating on a B2B payments solution for small businesses that supports both accounts payable and accounts receivable workflows. The companies are introducing Bill Manager, a tool to automate both AR and AP by integrating workflows within Bill.com into Wells Fargo’s digital banking solution, allowing for both the initiation of payments, as well as request of payments within a unified interface.

LogicGate Eyes AR’s Role In Changing AP Behavior

Igniting change in the way businesses make payments has continued to be one of the biggest hurdles to B2B payments modernization. But in a recent interview with PYMNTS, LogicGate CFO and COO Kevin Jacobson said he’s found that his company, which struggled with continuing to receive paper checks from corporate customers, was able to ease clients into electronic payments simply by asking. Communication is key to bridging the gap between accounts receivable departments and the accounts payable departments that pay them, he noted, adding, “We gave clear messaging and clear instructions as to how they could set ACH payments up, and articulated the benefits, so people could make their own decisions.”

ImagineTime Talks Easing The Digital B2B Payments Migration

With a focus on accounting practices, ImagineTime offers a range of business workflow solutions, including billing and accounts receivable solutions. Speaking with PYMNTS in a recent interview, CEO Carl Coe noted that not only do FinTech solution providers need to be strategic about easing accountants — who are typically conservative and technology-averse — into the digital age, but also deploy solutions that can help accountants’ own business customers make the shift with less friction. The same goes for B2B payments, with digital accounts receivable solutions a key opportunity for accountants to digitize while simultaneously encouraging electronic payments from their customers’ accounts payable operations. “We find ourselves evangelizing a lot on the concept of taking electronic payments, and the opportunity of fully integrated electronic payments where accountants don’t have any AR,” said Coe. “That’s versus today, where traditionally they have a very large AR balance they’re carrying all the time because their customers are mailing and dropping of checks more than most industries.”

Tipalti Collaborates On Card Adoption

Accounts payable automation solution provider Tipalti recently revealed its tie-up with Plastiq in an initiative designed to mitigate the friction suppliers face in accepting cards. Together, the companies will enable businesses using Tipalti to pay their invoices using commercial cards, even if suppliers don’t accept cards. For suppliers, this can mean faster payments without the costs of card acceptance. Buyers’ accounts payable processes, meanwhile, benefit from automation and the added value of extra working capital float and card rebates.

Adflex Mitigates Supplier Card Acceptance Burden

Another FinTech looking to sit between accounts payable and accounts receivable workflows in order to support corporate card adoption is Adflex, which recently announced a new solution designed to support payments made by corporate card in the B2B eCommerce landscape. Suppliers can send a link for payment, which buyers can use to settle their invoices visa card without having to worry whether their vendors actually accept cards. Suppliers, meanwhile, are not burdened with the requirements of securely storing and using card data, the company noted.

CardUp Wields Unused Commercial Card Credit

Yet another company looking to drive commercial card adoption is CardUp, which announced its launch in Hong Kong as well as a solution that allows businesses to tap into their unused credit lines. The technology sits in between buyers’ accounts payable and suppliers’ accounts receivable platforms, allowing businesses to use commercial cards to pay invoices without forcing vendors to accept cards — or the fees they typically carry. The solution is made possible by CardUp’s status as a registered Visa Business Payment Solution Provider, with Visa Country Manager for Singapore and Brunei Kunal Chatterjee stating that the collaboration “helps expand the options for businesses to pay with their cards, especially for suppliers who do not previously have card acceptance. This will help promote usage of digital payments for the entire business supply chain.”