Does Your Organization Have a Digital Lockbox?

That’s where collaborative commerce comes in. The term describes electronic business interactions among a company’s internal personnel, business partners and customers.

A digital lockbox can help organizations improve collaborative commerce by encouraging buyers and suppliers to cooperate while optimizing transactions and reducing the work connected to sending, receiving and reconciling payment information.

A digital lockbox can help businesses collaborate when generating and processing invoicing and payments. And goodwill and collaboration can do a great deal to maintain business relationships in the eCommerce environment.

Digital lockboxes help payments arrive with speed and security, with remittance data integrated directly into an account payable (AP) or enterprise resource planning (ERP) solution, ready to be reconciled in the monthly books.

Using a digital lockbox as a central collection and distribution hub for incoming payments can lead to some sweeping changes:

• Improved customer satisfaction: A digital lockbox can give clients more flexibility for making electronic payments.
• Fewer manual tasks: A digital lockbox can automate many tasks that would typically be the job of accountants and other accounts receivable (AR) staff.
• Increased flexibility: Digitizing payments processes can simplify workflows, control costs and speed transaction processing and reconciliation.
• Better overall financial processes: More transparent payments process adds more visibility into working capital.
• More effective problem solving: Digital lockboxes can deal with “lost” or partial payments by ensuring remittance data travels with the payment, leading to fewer transactions being held up. This also allows for an easier bookkeeping experience as payment information goes straight into a firm’s ERP system or AR solution.

For more on the benefits of digital lockboxes, download the Reimagining Business Payments report, a collaboration between PYMNTS and Billtrust.