Attributed to Stacey Sterbenz, General Manager, UK Commercial at American Express
A rise in customer expectations and growing business demands are driving businesses to adopt digital and automated payment solutions. Traditional, time-consuming processes are being replaced for more streamlined, customer-centric approaches; research by American Express[1] reveals 40% of UK finance leaders believe that customers value digital payments over traditional methods.
As this shift to digital gains momentum, the question arises: how can automation elevate businesses’ payment strategies?
Seeking greater efficiency
Businesses face three main challenges when managing payments: late payments, inefficient processes and human error. That’s why over two-fifths of UK finance leaders (42%) surveyed are seeking greater efficiency, whilst a similar proportion (40%) want to speed up transaction process time, and 38% are looking for ways to reduce costs and free up more time.
There’s a notable trend towards embracing automated payments to tackle these challenges head-on. This is reflected by over two thirds (69%) of UK businesses who are either already using or are considering automated payments to build efficiency, simplify admin tasks, and help finance teams focus on long-term goals. These investments are paying off, the research suggests, with almost half (46%) reporting time savings and about two-fifths (39%) noticing fewer mistakes. Recognising the power of automated payments in tackling these issues is key to building long-term business resilience.
Adopting automation has several benefits, beyond time and efficiency savings, including streamlining financial processes and cutting costs. In fact, 70% of UK businesses say switching up their payment methods has contributed to boosting their profitability. And it’s not just about finances – about a quarter (26%) of businesses report that trying out new payment methods has improved their relationships with both customers and suppliers, which are key components to delivering value.
Keeping security top of mind
Secure payment infrastructures are crucial for businesses to protect sensitive financial data, build trust and limit cyber threats. That’s why security tops the list of most important considerations for 60% of the firms polled when exploring new B2B payment methods. As a result, over a third (34%) of those businesses have strengthened their current security measures, highlighting the importance of staying ahead of potential threats.
Businesses should team up with payment partners who have robust encryption methods and authentication steps, and offer advanced security features as part of their systems. This will not only reduce risks but maintain trust and confidentiality of customers financial transactions.
Digital payments stand out as a strategic investment that promise long-term returns through streamlined processes, improved compliance, and access to actionable insights through increased data. Working with a strategic payments partner can create the optimum solution to help address common pain points, helping drive growth and deliver more value to customers.
Research conducted by Opinium on behalf of American Express, with 750 respondents from UK small, medium and large companies split across senior decision makers, senior finance professionals and finance team members who are responsible for payments, between 15-23 May 2023.
