ACCOUNTS PAYABLE AUTOMATION: The multitrillion-dollar accounts payable market is finally digitizing — here's how payments providers can grab a piece of it
This is a preview of the Accounts Payable Automation research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more consumer coverage with Payments & Commerce Pro. Subscribe today to receive industry-changing payments and commerce news and analysis to your inbox.
The $22 trillion business-to-business (B2B) US payments market is facing a paradox. High invoice volume (a business can see anywhere from hundreds to tens of thousands of invoices per month) and small departments that still use largely analog process are driving a desire to digitize: Enterprises using digital payables platforms can see 81% lower processing costs and 73% faster processing cycle times, per Kofax. But accounts payable is a complex process, and entrenched habits and limited resources have stymied digitization and kept companies set in their ways. Today, more firms are starting to seek accounts payable solutions that automate the invoicing and payments process, as they look to cut costs, decrease fraud, improve efficiency, and gain more visibility into payment data. These changes are bringing a deluge of providers — including software companies, card networks and providers, banks, and payment networks — into the ecosystem. By moving into B2B payments, players in the space can diversify their businesses by capturing a new source of volume and attracting a new set of clients, attractive prospects as growth in digital consumer payments begins to slow. For these providers, striking while the iron is hot and chasing the classes of businesses with the most opportunity — including small sellers, the middle market, cross-border companies, and the gig economy — will prove the top strategies in a successful pursuit of the B2B market. In this report, Business Insider Intelligence will size the accounts payable market in the US; evaluate the breakdown between analog and digital processes at all three stages of an accounts payable transaction; and evaluate barriers toward digitization. We will then identify four key segments where there's particular opportunity in accounts payable and assess the value in each. Finally, we will examine four best-in-class providers serving these areas and explain why their solutions could be a blueprint for other providers entering B2B. The companies mentioned in this report are: Bottomline Technologies, Intuit, JPMorgan Chase, MineralTree, Oracle, SAP, SWIFT, Tipalti, Visa, Xerox. Here are some key takeaways from the report:
The $22 trillion US B2B payments market has been slow to digitize, with 36% of firms using paper invoicing, 47% relying on manual processes for approval, and 49% of payments made by check. Forty-four percent of businesses are looking to add automation to their payables processes as a way to capitalize on the efficiency and cost-cutting benefits it brings in, while also cutting fraud and increasing access to payment data. Large enterprises have the highest budgets for digital solutions, but they're also the most likely to already be using them, which makes small businesses, middle-market companies, cross-border businesses, and the gig economy the ripest targets for innovation.
In full, the report:
Explains the typical accounts payable process and identifies pain points within each stage. Lists the benefits of automating accounts payables and highlights friction points preventing businesses from digitizing. Analyzes how payments providers can best move into the space and capture a large volume share as the market is on the cusp of rapid digitization. Evaluates four best-in-class strategies that payments providers looking to move into payables can take to scale quickly.
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THE BUY BUTTON REPORT: The introduction of SRC will turn the online retail payments industry on its head — here's how payments players can win in the new checkout landscape
This is a preview of The Buy Button research report from Business Insider Intelligence. Purchase this...This is a preview of The Buy Button research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more consumer coverage with Payments & Commerce Pro. Subscribe today to receive industry-changing payments and commerce news and analysis to your inbox. Payments firms have introduced buy buttons to streamline the online checkout process, but so many have done so that it can have the opposite effect. This led companies to introduce buy buttons so consumers could skip the cumbersome, labor-intensive steps required to input contact and payment information online, and to allow them to shop online more freely. But the array of options has become overwhelming. Firms such as Mastercard, Visa, Apple, Amazon, Walmart, point-of-sale (POS) financing providers, and many more have developed buy buttons for their payment methods. This glut undercuts the convenience buy buttons are meant to introduce, as consumers don't know which option will be available where, and they must search crowded checkout pages for their desired option. To address this problem, the major card networks have joined to introduce Secure Remote Commerce (SRC), which will provide a singular consistent buy button. EMVCo — which is owned by American Express, Discover, JCB, Mastercard, UnionPay, and Visa — developed SRC specifications, resulting in a standardized buy button and payment process that can be deployed by any merchant and accept credit and debit card payments from the six card networks. The consistency that the SRC-powered buy button can provide for consumers, which has been compared to the way in-store terminals accept payments from numerous networks, may remove the issues created by the overcrowded buy button market and transform the online retail payment process. In The Buy Button Report, Business Insider Intelligence lays out what SRC and its buy button are, how the button works for both consumers and merchants, and the obstacles between it and widespread adoption. We then analyze what the environment for buy buttons looks like after SRC's introduction, what the impacts of its debut are, and what firms will benefit and be hurt by it. Finally, we present recommendations for card networks, competing digital wallets, merchants, and payments service providers (PSPs) on what they can do to succeed now that the SRC-powered buy button has launched. The companies mentioned in this report are: Adyen, Affirm, Afterpay, Amazon, American Express, Apple, BigCommerce, Cinemark, Discover, EMVCo, FIS, Global Payments, Google, JCB, Kendra Scott, Klarna, Mastercard, Movember, PayPal, Rakuten, Sears, Shopify, Splitit, Stripe, UnionPay, Visa, and Walmart. Here are some of the key takeaways from the report: The sheer number of buy buttons available has resulted in a fragmented market and potentially undercuts their value. The SRC-powered buy button has the potential to streamline online checkout for consumers and boost conversion for merchants. Its value to both parties is predicated on its availability and acceptance, making gaining adoption a key initiative for its success. The new buy button could drive e-commerce sales, increase access to various payment and checkout solutions, and disrupt the existing buy button landscape. In full, the report: Examines the buy button market prior to the introduction of the SRC-powered buy button. Lays out what the new buy button is, how it works for consumers and merchants, and what obstacles there are to its adoption. Identifies how the SRC-powered buy button will impact the payments landscape, which includes its effects on conversion, online shopping on emerging devices, e-commerce fraud, and more. Considers how payments stakeholders can succeed now that the buy button has introduced by looking at both firms that back and use the buy button, and those that compete against it. Interested in getting the full report? Here's how to get access: Purchase & download the full report from our research store. >> Purchase & Download Now Sign up for Payments & Commerce Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >> Get Started Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Join the conversation about this story »
THE 2020 PAYMENTS ECOSYSTEM: The trends driving growth and shaping the future of the payments processing industry explained
This is a preview of The Payments Ecosystem research report from Business Insider Intelligence. Purchase this...This is a preview of The Payments Ecosystem research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more consumer coverage with Payments & Commerce Pro. Subscribe today to receive industry-changing payments and commerce news and analysis to your inbox. The power dynamics in the payments industry are changing as businesses and consumers shift dollars from cash and checks to digital payment methods. Cards dominate the in-store retail channel, but mobile wallets like Apple Pay are seeing a rapid uptick in usage. At the same time, e-commerce will chip away at brick-and-mortar retail as smartphones attract a rising share of digital shopping. Digital peer-to-peer (P2P) apps are supplanting cash in the day-to-day lives of users across generations as they become more appealing and useful than ever. And change is trickling down into bigger industries long-dominated by cash and check, like remittances and business-to-business payments. In response, providers are scrambling for market share. Skyrocketing consolidation that creates mega-giants is forcing providers to diversify in search of new volume. New entrants, especially from big tech, are threatening the leads of giants. And as payments become increasingly effortless, new types of fraud are threatening data security and privacy. While demand for richer payments offerings is creating opportunities across the space, it's also leaving the industry in search of ways to adapt to change that is putting trillions in volume and billions in revenue up for grabs. In this report, Business Insider Intelligence examines the payments ecosystem today, its growth drivers, and where the industry is headed. It begins by tracing the path of an in-store card payment from processing to settlement across the key stakeholders. That process is central to understanding payments, and has changed slowly in the face of disruption. The report also forecasts growth and defines drivers for key digital payment types through 2024. Finally, it highlights three trends that are changing payments, looking at how disparate factors, such as new market entrants and surging fraud, are sparking change across the ecosystem. The companies mentioned in this report are: ACI Worldwide, Adyen, Amazon, American Express, Apple, Bank of America, Braintree, Bento for Business, Capital One, Citi, Diebold Nixdorf, Discover, Earthport, Elavon, EVO, Facebook, First Data, Fiserv, FIS, Global Payments, Goldman Sachs, Google, Green Dot, Honda, Ingenico, Intuit, JPMorgan Chase, Kabbage, Macy's, Mastercard, MICROS, MoneyGram, NatWest, NICE, NCR, Oracle, Paymentus, PayPal, Rambus, Remitly, Ria, Samsung, SiriusXM, SF Systems, Square, Stripe, Synchrony Financial, The Clearing House, Target, Tipalti, Toast, Transfast, TSYS, Venmo, Verifone, Vocalink, Visa, Walmart, Wells Fargo, WePay, Western Union, Xoom, Zelle Here are some of the key takeaways from this report: In-store payment methods are still on the rise in the US, comprising 89% of retail volume this year. Credit and debit cards continue to lead the segment, as cash and check usage slowly ticks downward. But surging contactless penetration is set to bring mobile in-store payments to prominence for the first time in the years ahead. Surging e-commerce will eat away at in-store payments' share of overall retail. PCs will continue to lead the way, but smartphones will inch closer to being the top channel for purchasing, in turn driving growth. At the same time, new payment tools, like voice assistants, wearables, and even cars will begin to give consumers even easier ways to pay. The digitization of payments isn't just contained to retail, though, with mobile P2P payments, digital remittances, and digital business payments continuing to blossom as change spreads through the ecosystem. In full, the report: Traces the path of an in-store card payment from processing to settlement across key stakeholders. Discusses emerging alternatives to card payments. Examines the shifting role of key categories of providers as the ecosystem digitizes and matures. Forecasts growth in key categories, including in-store payments, e-commerce, mobile P2P payments, remittances, and B2B payments. Identifies three trends set to shape payments in 2020 and evaluates what changes the ecosystem is set to undergo. Interested in getting the full report? Here's how to get access: Purchase & download the full report from our research store. >> Purchase & Download Now Sign up for Payments & Commerce Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >> Get Started Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Current subscribers can read the report here. Join the conversation about this story »