3 Ways Digital Payments Deliver Transformational Growth to Business

Strategic enterprise resource planning (ERP) is the foundation of any organization’s long-term success.

The success of any ERP initiative, however, is wholly dependent upon key drivers of business growth — such as digital payments processes — operating seamlessly, according to the “2022 Digital Payments Guide for Corporate Payments,” a PYMNTS and LexisNexis Risk Solutions collaboration.

Get the report: 2022 Digital Payments Guide for Corporate Payments

A modern approach to digital payments — including using contactless payments and integrating virtual currencies into eCommerce models — can offer corporations and their banks new efficiencies when paired with a robust ERP or treasury management system (TMS) platform.

Enterprise-grade digital payments solutions allow organizations to collect and process payments from connected devices and customers or clients globally. Records are updated in near real time and revenue data is easy to review, compare with ERP benchmarks and transform into actionable insights for the entire organization.

Driving Business Growth

The report highlights three ways in which digital payments adoption can serve as a key driver of business growth.

First, using an ERP or TMS solution with digital payments allows organizations to monitor payments data, including any newly updated payment instructions, while deploying powerful user validation and transaction management tools across the organization.

Second, integrated digital payments and ERP platforms automatically can enrich payments data to limit errors and provide extensive, more accurate and more compliant reporting.

Third, digital payments platforms that are compatible with automated compliance features on ERPs help reduce friction from cross-border payments processes, limiting user validation delays based on incompatible know your business (KYB), know your customer (KYC) or anti-money laundering (AML) standards.

Recent sanctions against Russia have provided an example of why any organization needs to ensure the accuracy of data, know who’s on the other end of a payment, have accurate banking information and see through the chain of transactions, Leslie Bailey, financial crime compliance strategy vice president at LexisNexis Risk Solutions, told PYMNTS in an interview.

Read more: Transparency Key to Mitigating Real-Time Payments Risk

For businesses, that’s key to protecting their reputation and their financial situation.

“That’s where you’re seeing people in our space really taking a look at this and saying, ‘We know that people demand fast, we know that people want protection of their assets — how do we get them there in the best way possible without putting them at risk?’” Bailey said. “That’s what it’s all about.”

Improving CX, Outcomes

Emergent payments technologies can create intuitive customer experiences for users and help boost customer loyalty to brands, retailers and financial institutions (FIs). Popular digital payment methods include digital wallets, hybrid online-mobile payments and contactless payments.

In each case, digital payments technologies that integrate with an enterprise-grade ERP or TMS platform with near-real-time data access empower the authentication of bank and account holder details, the isolation of errors and the initiation of corrections.

They also would enable the addition of enriched payment data to ERP, TMS and payments processing platforms in near real time and would allow payments to be directed more efficiently through cross-border and domestic payments networks based on near-real-time data.