Mass Payment Systems and their Benefits

5 Reasons to Switch for your Business Today

PurchTips Edition #452

Mass Payment Systems

How up to date are the accounting systems in your business? If you’ve been looking for a way to simplify your payment processes, then now may be the time to look at a mass payment system. The benefits such platforms offer range from streamlining your money flow to an added layer of security for you and your customers. Here’s a look at five reasons to move your business forward into the world of mass payments.

Simplified Payments

Mass payment solutions are designed for businesses with a high volume of payments. Even if you don’t think you’ve met that threshold, such a payment setup still has advantages. They can be used to coordinate recurring payments of any amounts or to schedule one time payments. What makes a mass payment system different is the simplification of the process. Using such a platform enables a company to make simultaneous payments with as little as one or two clicks. It’s a way of streamlining the process when your business demands sending payments to multiple vendors or customers at the same time.

Cost-Effective International Payments

cost effective international payments

While some mass payment solutions focus on domestic payments, options are available for companies whose business transactions cross international borders. PayPal, for example, offers payments in 24 different currencies to 156 countries.

Some systems allow payments to be sent to the recipient’s bank accounts through phone numbers and email addresses. This can help avoid the costs of wire transfers or other fees. Another component to be aware of is limits on the amount of individual payment.

Nevertheless, mass payments offer an easier option for companies trying to take their payouts digital. Where older transfer systems sometimes took days to process, up to date international payments can often be handled in under a minute.

Growth of Digital Payments

Many businesses and consumers are moving away from using cash. So as digital payments increase, so does a business’s need to structure high volume payments such as customer rebates or employee benefits. Experts estimated the number of digital transactions is increasing with growth expected at a rate of about seven percent per year.

 

Digital payments are expected to be a $2 trillion industry in 2020. As business trends shift more and more to a global economy, experts say the need for businesses to have mass payment solutions in place only increases.

 

Studies have shown that digital transfers—whether purchases or payments—are the preferred transaction style for millennials. Add to that the growing global penetration of the internet, and it makes choosing a mass payment solution a logical choice for your company.

 

Streamline WorkFlow

streamline workflow

Using a mass payment platform enables a business to use one system to send and track payments. It cuts out the multiple steps of a paper or individual payment system. As your business grows, your payment platform enables your accounting department to keep abreast of changes very often by shifting the input of information to the customer.

 

Systems can be set up to send emails automatically, letting customers know where they are in the payment process. Since payments are scheduled automatically, it also eliminates the possibility of getting behind schedule on customer payments. Maybe most relevant for a growing business – as your customer base increases, a mass payment platform grows along with it.

 

Simplified payment structures and the flexibility for growth mean you won’t have an accounting department bogged down with a backlog of work or in need of additional employees to get the job done.

Documentation and security


documentation and security

Another reason a mass payment system may be the best decision for your company has to do with keeping your business practices accurate and secure. Many systems are set up to automatically identify and sort the tax information you need every year.

However, you need additional options in place that ensure your payment and financial information meets banking redundancy and regulation requirements. Also vital for you and your clients is the confidence that your platform will protect their personal information and prevent data breaches.

Hyperwallet, for example, adheres to payment card industry (PCI) data security standards. The standards were designed to decrease credit card fraud.

Conclusion

No matter the mass payment system you choose to use in your business, make sure their security is top-notch. Protect your business and your customers against the hazards of a data breach. Mass payment systems make sense for any company that regularly sends out a large volume of payments.

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Copyright 2020. This article is the property of the Next Level Purchasing Association and may not be copied or republished in any form without the express written consent of the Next Level Purchasing Association. Click here to request republishing permission.

Gil Artmoore has spent the past decade working in various roles in IT departments for many businesses both small and large. Recently, Gil started writing out the things he has learned, experienced and witnessed in the small business and tech world during his career. He is eager to share his insights with the rest of the world.

This is the Web-based version of this article. Click here for the printer-friendly version.

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