Automation will gradually be vital in payment processes in 2021, and will be accompanied by significant new trends.
Tipalti, a U.S.-based company, has presented a survey showing that 76% of respondents are willing to automate manual banking. 80% of respondents strive to automate the reconciliation of payments. They also want to reduce the time that financial staff spend processing payments. The introduction of an automated digital payment system reduces the time it takes to accept a payment, reduces the time it takes to confirm performance, and also saves time to coordinate and confirm payments. Accounts receivable automation reduces time spent and processing costs by 80% with easier-to-verify, manageable electronic payment methods. Manual payment processing has several drawbacks, such as data entry errors, banking fees, unpaid payment methods, failed payments, or other communication problems. To avoid these problems, the automation process is gradually increasing in the payment industry.
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The payment automation business is largely focused on cost savings and debt efficiency. The Covid-19 pandemic and teleworking have further reinforced the case. Some companies are reluctant to send employees for inspections for security reasons and other companies are reluctant to receive checks. Buyers are asked to initiate payment by automated methods. As journalists introduce digital payments much faster, checks will gradually become obsolete quickly.
Biometrics is on trend
Biometric verification is a method of verification that involves the biological and structural characteristics of a person. These verification methods include fingerprint sensors, facial recognition, iris recognition, heart rate analysis, and venous mapping. As the problems of identity theft and fraud increase, biometric authentication has become a reliable and secure alternative to automatic digital payments. Biometric authentication also includes accuracy, efficiency, and security in a single package. It is a very secure method because it involves the unique characteristics of the individual. It also helps maintain customer confidence in the system.
Faster AR processes
The trade receivables process of the automated payment process has become much faster with the help of Nacha (National Automated Clearing House Association) and RTP (Real-Time Payments) network. The process of transferring ACH remittance data is faster than before.
The digital generation
The new generation will be more dependent on high-tech, automated, faster and more efficient technologies and services. 90% of younger people want to use online payments because they want to get rid of the practice of carrying money everywhere. From the smallest transaction to larger money transfer moments, they tend to bend to automatic payment methods. This has led to the growth of automated digital payment systems over the years.
The key to security
Previously, bank accounts were simply identified by random combinations of individual numbers on the card. However, the current EMV technology for users of Europay, Mastercard or Visa has gradually introduced and brought customers a more computerized and secure payment mechanism. EMV technology is known for the use of codes that vary whenever an event occurs. This use of temporary codes improves the security of bank accounts by leaps and bounds. There is also a high chance of cards being lost or stolen, which can be completely overcome with automatic payment methods.
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