-
A Closer Look at the Benefits of Payments as a Service Solutions
Digital payments are a big part of the modern business world, especially since the pandemic forced many companies to accelerate their digitization. There’s a demand for faster money transfers, digital payment methods, and payment management systems that employees can use while working remotely. This means that traditional, batch-based payment hubs aren’t the best solution anymore for most companies.
Payments as a Service systems offer a more flexible and efficient way for modern companies to handle payment disbursement. You can think of it as a type of outsourcing. Instead of managing all your payments in-house, you’re outsourcing the logistics of digital payments to a software company. All you’ll need to do is input data and use the software.
In another post, we looked at “What is ‘Payments as a Service’ and How Can It Help Your Company.” For this article, let’s zoom in on the benefits that come along with using the Payments as a Service (PaaS) model.
Faster Payments
The way that PaaS software works makes it easy to make payments on time or even early. Rather than making payments in batches, you can process each payment quickly as it comes in.
In NextProcess’s payment software, high-frequency ACH services enable secure, rapid disbursement of payments. For vendors that prefer paper checks, our check printing and mailing service prints checks on blank stock that’s MICR encoded at the time of printing. Whether you need to mail payments or can make them online, PaaS is fast, easy, and secure.
Lower Costs
With Payments as a Service solutions, you pay based on how many transactions you use rather than paying a flat fee. In the long run, this means that most companies save money because they’re only paying for what they need. This pricing system also makes PaaS systems easily scale to your company’s changing payables needs as your organization grows.
You’re also saving money by not needing to maintain your own in-house payment software system. PaaS systems mean less hassle for your IT department, and no more costs associated with maintaining or upgrading payment systems. The company supplying your PaaS software system takes care of software and security updates, as well as upkeep costs like server maintenance.
Potential for Cash Back
Payments as a Service systems also help you save money by making it easy to use a charge card that offers a rebate on spending. The faster payment turnaround times also mean your company can also get early payment rebates or discounts if your vendors offer that as a perk.
Improved Vendor Relationships
Improved relationships with your vendors and suppliers are another big advantage of PaaS systems. No more late payments—and the option to pay early—means more goodwill toward your company. Plus, PaaS systems make it easy for your company to comply with vendors’ preferred payment methods. You can even enable direct accounts receivable file transfers for key vendors.
These improved relationships can lead to other perks for your company that you might not initially think of when considering PaaS software. For example, imagine a scenario where your supplier has a limited stock of an item and needs to choose which order to fill first. If your company has a history of on-time or early payments and you’re easy to work with, the supplier is more likely to fulfill your order before another company with a history of late payments.
Increased Data Access
NextProcess’s Payments as a Service software lets you see updates on the status of all your paper and digital payments in the software in real-time. You’ll have improved access to the status of your payments, and you can choose to share that information with vendors if they’re interested.
You’ll also have improved access to all the data surrounding your company’s financial transactions. Every time you process a payment, you’re collecting important information about your company’s cash flow and your suppliers. The PaaS system logs this data in an easy-to-use database so your company can use it for financial planning.
Better Security
Reliable PaaS providers ensure their software complies with regulations on a regional, national, and global level. They also take care of updating security features to keep your payments data safe in a digital world.
Trying to secure your company’s and your vendors’ financial information internally requires intense security protocols. It also places a burden of risk on your financial department. NextProcess is an SSAE-16 and HIPAA Compliant provider with extensive security protocols to help you protect your data.
Reduce Fraud Risk
While PaaS software can’t eliminate the risk of fraud in payables, it can help you take steps to reduce the risk. Using a trusted third-party provider keeps important financial tasks separated. Check fraud is one of the most common forms of payment fraud and outsourcing to a PaaS company helps reduce that risk.
PaaS improves internal controls by segregating financial duties and outsourcing your payment process to a neutral, certified firm. Your company can also customize restricted access to the PaaS software to meet your individual needs. With NextProcess, we offer extensive customization options. You can even configure individual user views so employees working with the software only see information that is most relevant to them.
PaaS With NextProcess
NextProcess offers an easy-to-use payments platform with all the benefits you’ve just finished reading about. Our Payments as a Service software makes managing your company’s payments easy and affordable. Plus, you can access the software application anywhere with an internet connection.
Our configurable, flexible, and accessible software can accommodate your company’s unique payables requirements. We’ll also work closely with you through the entire setup process to make sure that your employees are comfortable with the new software and that everything works just the way you need. To learn more about how our PaaS system can help your company, contact us today and schedule a free demo.