New business norms require modes of thinking that aren’t just the same old, same old.
Today, innovation across accounts receivable (AR) and accounts payable (AP), is taking center stage for forward-thinking firms.
“AR and AP automation is no longer a nice to have. These are becoming very much table-stake functions for businesses,” Pavan Krishna, VP, B2B Payments Products and Partnerships, Merchant Services (U.S.) at American Express, told PYMNTS.
Once viewed as a purely operational task aimed at processing invoices and payments more quickly, the impact of AR and AP automation on business is being recognized for something deeper: the ability to positively affect the relationships between buyers and suppliers, give finance leaders real-time insight into cash flow, and also free up businesses to focus on strategically driving revenue, while responding with agility to changing market conditions.
It might seem astonishing that, in 2025, many companies still rely on paper checks and emailed remittance files — but they do. Only 17% of firms have fully automated their payments processes, according to the Amex Trendex: B2B Payments Edition. Yet, 91% of business decision-makers said they believe that easy, streamlined and secure payments drive business growth.
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That gap between adoption and recognition presents the opening for solution providers and finance leaders alike, and highlights the urgency of AR/AP automation for chief financial officers (CFOs) today.
“Paper checks are slower and error prone,” Krishna said. “You’re spending a ton of time and resources managing something that truly should be automated. At the end of the day, you want to focus your efforts on revenue-generating, strategic focus areas, not manual steps.”
As supply chains become more fragmented, interest rates fluctuate, and digital competitors move fast, the ability to reconcile payments efficiently and accurately isn’t just about saving clerical time but about competing most effectively through new efficiencies and insights.
Read more: From Friction to Flow: AR Automation in 2025
The Trust Dividend of Automation
The digitization of AR and AP functions isn’t just about workflow optimization; it fundamentally reshapes the relationship between buyers and suppliers.
“Net-net, what we see is automation helps build trust but also solves a lot of inefficiencies that otherwise happen with manual steps,” Krishna said.
Against a backdrop where trust and resilience can be competitive differentiators, relationships have never been more important. Buyers want transparency about payment timelines; suppliers want assurance they’ll be paid on time. Automated systems provide both sides with real-time data and reduce disputes. Offering flexible, digital payment options further strengthens the commercial relationship.
It’s not just a theory — the consequences of lagging payments are real. In fact, per the Amex Trendex: B2B Payments Edition, 26% of businesses surveyed said they’ve severed ties with a buyer or supplier due to consistent payment delays.* That kind of fallout underscores why automation isn’t just an efficiency play; it’s essential to maintaining trust and revenue relationships.
And while a few years ago, automation in finance departments was primarily about cutting costs, today, it has become a strategic lever for CFOs and their teams, especially amid unpredictable business conditions.
“AR automation gives CFOs and the finance teams an accurate real-time visibility into the health of the business,” Krishna said. “Without visibility into AR, it’s often really hard to make informed decisions about where to invest and the types of solutions to invest in.”
With accurate, real-time data on receivables, CFOs can better forecast cash flows, model investment scenarios, and guide their organizations through uncertain economic terrain. It’s a shift from firefighting to forward planning, a transformation with implications for everything from working capital optimization to long-term growth strategies.
“AR automation is ‘the’ tool for the office of CFO,” Krishna said, noting that American Express’ own integrated model acting as issuer, acquirer and network can provide unique vantage points on buyer and supplier behaviors.
“At the end of the day, CFOs not only build stronger systems to drive growth but also save money through the automation of payment processes and order-to-cash,” he said.
Embracing the Shift from Tactical to Strategic Leadership
For many companies, particularly mid-sized firms, the idea of overhauling end-to-end AR or AP processes can feel daunting. But Krishna emphasized that transformation need not be all-or-nothing. Addressing high-impact pain points first can deliver quick wins and build momentum for broader digital transformation.
“You do not have to revamp your entire end-to-end AR automation overnight.” His advice is to start with the most challenging aspects of the process.
Companies often begin with the highest-impact bottlenecks, such as managing the influx of virtual card payments or improving cash application for ACH payments with minimal remittance data.
While the strategic case for automation is clear, the journey looks different depending on a company’s size and maturity. The fundamental objective of freeing up time and resources for growth is universal, but the path to achieving it varies. Modular solutions allow organizations to prioritize critical pain points and expand capabilities over time.
Large enterprises, by contrast, face complex cross-border payment and compliance challenges that demand more modular and customizable solutions. Here, the focus often lies in integrating AR/AP automation with broader enterprise resource planning systems and ensuring compatibility across regions and regulatory environments.
And the shift to automation is simultaneously being accelerated by innovations in payment technologies, particularly virtual cards and integrated portals. These developments are not just technical upgrades but enablers of speed, predictability and trust in financial transactions.
