How AR-AP Connectivity Tightens The Buyer-Supplier Relationship

The convergence of accounts payable (AP) and accounts receivable (AR) continues as banks and FinTechs collaborate on new solutions that pull double-duty, tackling friction for both payers and payees.

The latest initiatives include Chase, which is facilitating streamlined invoice payments to reduce friction for payers while accelerating access to capital for suppliers.

Also embracing bank-FinTech collaboration is AvidXchange, whose AvidPay B2B payments solution — designed with suppliers and their AR processes in mind — will now be offered to bank customers of BankTEL. Finally, a tie-up in the Netherlands targets both banks and corporates to tighten the buyer-supplier connection through identity verification.

AR Keeps AP Friction In Mind

With accounts payable technology expanding its focus on accounts receivable friction, the reverse is also true as AR service providers begin to tackle AP challenges, too.

The latest example of this trend is Invoiced, an accounts receivable and invoicing platform that recently announced a collaboration with Chase-owned WePay. Invoiced debuted Invoiced Payments, powered by WePay, which integrates payment processing for a streamlined invoice-to-payment experience for both buyer and supplier.

Chase subsequently announced another similar initiative in its partnership with Workiz.

That tie-up sees Workiz integrating same-day payouts for in-field workers, meaning these professionals can more seamlessly bill and receive payment while in-the-field — while at the same time connecting customers to an easier way to settle their invoices.

The integration also targets speed of payments: for in-field workers who are already customers of Chase Bank, they’ll be able to see same-day payouts as a result of the tie-up, the companies said.

AvidPay Links to Banks Via BankTEL

BankTEL, a financial management technology provider to banks, is connecting its financial institution clients to AvidXchange’s AvidPay B2B payments network, with its first customer signing on as Nashville-based Studio Bank.

AvidXchange, which acquired BankTEL earlier this year, is connecting banks to a B2B payments network and solution designed with the supplier in mind. Utilizing a database of B2B vendors, AvidPay is an accounts payable tool to help users migrate away from paper with automated invoice processing. The tool also supports digital payments through AvidXchange’s ACH solution, AvidPay Direct, as well as other payment methods.

BankTEL will integrate AvidPay into its bank accounting suite of services dubbed ASCENT, which “creates a fully integrated solution that replaces manual tasks with automation, streamlining the complete AP to payment process for clients like Studio Bank,” said BankTEL Senior Vice President Boyce Adams in a statement.

Connecting AR and AP Through ID

In the Netherlands, digital identity solutions provider Signicat and payment information service provider SurePay recently announced a collaboration to integrate SurePay’s bank account verification technology within Signicat’s Digital Identity Platform.

Designed to address B2B payments fraud, the collaboration allows financial institutions and businesses to verify the identity of the recipient of a transaction in order to combat financial crime within accounts payable and the broader B2B payments ecosystem.

Though it’s a technology that sits on the accounts payable side of the payment, the companies highlighted the impact it has on suppliers’ accounts receivable operations and the deeper buyer-supplier relationship as well.

“By integrating the [identity] check in at the payee on-boarding stage both customers and suppliers have found it to prevent dropouts for second line investigation,” said SurePay Co-Founder Marcel Rienties in a statement.

“Building trust between businesses and customers online is critical in the digital age,” added Signicat CEO Gunnar Nordseth, adding that such technology “makes it easier for companies to connect when multiple checks are involved,” bringing buyers and suppliers closer together.