🌸 I help B2B and Tech Founders Scale with Metric-Based Marketing, Sales, and Technology
Leveraging a TEAM of Serial Entrepreneurs
🫵🏻 Stop Guessing—
🎉 Start Growing!!
🚀 Exciting news from the finance sector! 🚀
A respected friend and colleague, Walter Akolo, has followed and kept his nose on #banking and #b2b payments for over a decade, just publishing a new blog post that dives deep into the nuances of #ACH and EFT payments.
A little bias, but this is a must-read when you’re deciding which payment processing option is best for your business when paying your contractors, vendors, and employees.
(And keep in mind, you CAN use the same gateway to process #payouts as you do in your account receivables department; you simply have a slightly different acceptance strategy that likely possesses more bells and whistles as far as the #fintech goes.) 😉
🔍 Key Insights Include:
• Scope and Reach
While EFT encompasses a wide array of #digitalpayment methods, ACH is tailored specifically for bank-to-bank transfers within a secure, dedicated U.S. network.
• Processing Speed
Need fast transactions?
#EFT might be your go-to.
(But don’t overlook the new Same Day ACH options that offer quicker transfers at a lower cost.)
• Cost and Fees
Understanding the fee structures may significantly impact your choice, especially when it comes to regular large transactions or business operations.
💡 Whether you’re a startup owner, a seasoned #entrepreneur, or just curious about the best ways to handle digital payments, 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙𝙞𝙣𝙜 𝙩𝙝𝙚𝙨𝙚 𝙘𝙧𝙪𝙘𝙞𝙖𝙡 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙘𝙚𝙨 will prove fruitful for building a #payments acceptance strategy.
🔗 Check out the full article
https://lnkd.in/eSFDGqf4
Gain a detailed breakdown and empower your financial decisions with the right knowledge!
Have more questions?
Let me connect you to Walter, my friends at Nacha, and ePayResources® to dig in deeper so you’re empowered to build business that drives innovation! 🙌
#finance#businessstrategy
Nicole Estes, thank you for the kind words and for sharing the article! I'm always happy to see people taking an active interest in understanding the nuances of the financial world.
To everyone reading, I encourage you to dive into the article and equip yourself with the knowledge to make informed decisions for your business.
Choosing the right payment processing method can be a game-changer.
I'm here to help if you have any questions.
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte
#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte
#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte
#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte
#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte#payments#fintech#digitalpayments
Corporate payments: Identifying key pain points for corporates and banks
Limited visibility on end-to-end transaction status for cross-border payments
Corporates have historically faced challenges in accessing real-time information on payment transaction status and account positions, especially in complex cross-border transactions involving multiple intermediaries. This lack of visibility has led to inefficiencies in cash flow forecasting and difficulty in understanding the fees charged by banks. Although initiatives like SWIFT Global Payments Innovation (GPI) aim to address these issues, the adoption by banks remains slow.
✅ Lack of aggregated view of fund positions and bank accounts
Corporates have complex organisational structures, with regional offices spread across the globe. Each regional office prefers to use its local bank account for payments to vendors and employees, as well as for the management of internal expenses. In addition, corporates have multiple banking relationships and use different bank accounts to process their payments. Hence, keeping track of collections and payments becomes a challenge, leading to a lack of aggregated view of fund positions across multiple banks accounts.
✅ Inconsistent payments experience for corporates due to diverse payment needs
Corporates have complex payment requirements. They need to make payments to their suppliers, subsidiaries, and employees, as well as collect payments from their customers, all of whom can be spread across multiple countries. To support these diverse payments needs (real-time payments, cross-border payments, Foreign Exchange [FX] payments, etc.), which require different messaging standards (domestic and cross-border clearing and settlement), banks must set up multiple teams/payment systems, which at times could lead to inconsistent experience for corporate customers.
✅ Complex integration requirements for seamless corporate connectivity
Corporates manage multiple banking relationships and rely on various communication methods, like ERP-to-bank integration, to conduct payments. However, this integration is intricate and time-consuming due to security, format, and protocol challenges. While larger corporations can invest in these solutions, smaller ones struggle. To address this, banks are exploring standardized connectivity options, such as APIs, to simplify access to their services for all corporate clients, thereby easing the burden on smaller businesses.
✅ Cumbersome bank statement reconciliations
Corporates must maintain large accounting teams for the reconciliation of their bank statements with ERP accounts, as it is a time-consuming and complex process. In addition, there are limitations in ERP systems for supporting auto reconciliation and multiple statement formats.
👉 Subscribe for more insights https://lnkd.in/d94JgWBU
Source Deloitte
#fintech#payments#bankingLedaFlorianAlexAli
SMEs of all sizes make wide use of core payments and collections solutions, credit card services, and cash and treasury management workflow solutions. Roughly 70 to 85 percent say they get these services at their primary bank.
About 30 percent of SMEs say they don’t use their primary bank to meet their needs for some common add-on services (such as positive pay, which aims to deter check fraud, and zero-balance accounts, which are funded only when needed for a transaction) and complex services (such as electronic bill pay or smart safes that secure and monitor cash). These services therefore represent significant cross-selling potential. Banks could also deepen customer relationships by cross-selling personal credit cards and small-business credit cards to their SME clients.
SMEs say they choose cash flow management service providers based on the attractiveness of their fees or rates (51 percent), the comprehensiveness of the product coverage (47 percent), and the ease and accessibility of online tools (34 percent). About 70 percent of survey respondents said they are interested in end-to-end cash flow management services from their primary bank. Typically, the larger a small business grows, the more complex its financial needs become and the more it becomes interested in comprehensive solutions. To meet these needs, banks could offer bundled cash flow management tools and explore partnerships with specialized fintechs.
Integrate payments processing
SMEs can choose from a variety of payment-processing partners, including banks, fintechs, and traditional payment companies.
🌍 Dual-Account Strategies are revolutionizing B2B collections! At OPAL , we’re tackling barriers like 𝗻𝗮𝗺𝗲𝗱 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 requirements, compliance hurdles, and coverage gaps, empowering SMEs to streamline their collections and payouts globally. Our innovative solutions balance traditional banking with the agility of payment accounts, unlocking cost savings and efficiency. Ready to take your B2B payments to the next level? Let's talk!
#DualAccountStrategy#B2BPayments#FintechInnovation#SMEGrowth#GlobalCollections
Co-Founder & CEO @ OPAL Fintech | Certified Anti-Money Laundering Professional | Attorney at Law - Commercial Contract & Regulatory Law Advisor
𝗗𝘂𝗮𝗹-𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀: 𝗔 𝗚𝗮𝗺𝗲-𝗖𝗵𝗮𝗻𝗴𝗲𝗿 𝗳𝗼𝗿 𝗕𝟮𝗕 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀:
As SMEs continue to refine their financial strategies, 𝗱𝘂𝗮𝗹-𝗮𝗰𝗰𝗼𝘂𝗻𝘁 setups are becoming increasingly popular. Many SMEs already enjoy the benefits of using both a 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 and a specialized payment account, especially for cost-effective payouts and foreign currency needs.
Yet, there’s still untapped potential in using these payment accounts for 𝗼𝘃𝗲𝗿𝘀𝗲𝗮𝘀 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀 — particularly for high-value wire transfers (not credit card transactions).
Despite the clear advantages, 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀 have lagged behind in this dual-account strategy.
Why?
Here are some of the barriers SMEs encounter:
1. Named Account Requirements: Payment companies often can’t provide a collection account directly in the SME’s name, particularly for SWIFT or local transfers. Many banks or buyers require this specific naming transparency, making it challenging to use payment companies for fund collections. As a result, traditional banks become the default option, where accounts are typically in the business's name by default
2. High-Value Payment Processing Limitations: When it comes to collecting larger sums, compliance concerns and regulatory friction can slow down the process significantly. Fintech companies may rely on a web of partnerships across regions to clear high-value payments, but each link in this chain often means more compliance checks, slowing down funds availability for SMEs.
3. Network Coverage Gaps: While payouts have reached near-global coverage, collections aren’t as seamless. Few payment providers cover every region comprehensively for collections, and SMEs may find themselves juggling multiple providers, which can be complex to manage.
4. Bank Credit Dynamics: Banks often require businesses to process collections through them as part of maintaining credit facilities. This makes it hard for SMEs to fully leverage the flexibility of payment accounts without risking these critical banking relationships.
Looking Ahead: 𝗧𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗗𝘂𝗮𝗹-𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝗕𝟮𝗕
The landscape is shifting. 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗕𝟮𝗕 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝗿𝘀, such as OPAL, are addressing these barriers with creative solutions, building out more comprehensive collections services across more regions. As these hurdles are gradually overcome, SMEs will be able to use dual-account strategies more effectively, balancing traditional bank services with the efficiency and 𝗰𝗼𝘀𝘁 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀 of payment accounts.
The evolution of this strategy could be a game-changer for global B2B collections. If your business is looking to streamline both collections and payouts, it’s time to explore the possibilities of a dual-account approach.
#DualAccountStrategy#B2BPayments#FintechInnovation#SMEGrowth#GlobalCollections
UK’s Largest Independent Payments Broker Launches Tech-Enabled Cash Service to Boost SME Cash Flow
Richard Bradley, CEO of acceptcards® Independent Payment Experts and Accept Cash, said: “The cost and time implications of depositing cash is currently squeezing SMEs financially and operationally. Not only does it take time out of a working week for a staff member to cash up and physically go to a bank, it’s also increasingly difficult to do so given the rise in high street banking closures. Added to this, the fees associated with depositing cash can be very high, making it difficult for SMEs – who want to be able to offer cash to their customers – to balance the books and forecast cash flow.
“As an independent payments broker, we pride ourselves in disrupting this sector with the latest innovations in technology. Cash is here to stay and we’ve identified that SMEs need to be able to deposit cash quickly and affordably. Accept Cash’s innovative approach and use of new technology will allow businesses to access cash in their bank accounts on the same day – without having to visit a bank – by combining open banking and technology with secure smart safes. We’re pleased to be one of the very few providers in the UK to offer this same day settlement service and respond to demand.
“Not only is Accept Cash the perfect solution to solving a big headache for businesses processing cash, it is likely to also encourage some businesses who have moved away from cash to return to accepting it. Ultimately, consumers need to have the choice of both cash and card payments and this should not be prohibitive in any way for SMEs; after all, they remain the backbone of the UK’s economy.”
https://lnkd.in/ervZ2JkuMartin SmithKayley Worsley MCIPRJason CostelloRichard James West#fintech#finance#banking#paytech#payments#fintechnews#paymentsnews
Co-Founder and Director of Digital Marketing at Market Me More | Blogger with 3M+ Views | Email Marketer with 20k+ Subscribers
7moNicole Estes, thank you for the kind words and for sharing the article! I'm always happy to see people taking an active interest in understanding the nuances of the financial world. To everyone reading, I encourage you to dive into the article and equip yourself with the knowledge to make informed decisions for your business. Choosing the right payment processing method can be a game-changer. I'm here to help if you have any questions.