Burgeoning online payments volume is both boon and a challenge for online marketplaces.
A boon, of course, for top-line momentum and for proof positive that the business model of bringing buyers and sellers together is here to stay.
But the challenge lies with making sure that payables are taken care of with speed and efficiency, as sellers can be far-flung across time zones and currencies. For the mass payout firms themselves, it’s imperative to process payables without error or delay, lest sellers depart for competitors.
And as found in the most recent Accounts Payable Automation report, done in collaboration between PYMNTS and Routable, there’s a widespread recognition that automating payables functionalities is a critical consideration.
The data gleaned from 204 executives show that as many as 54% of online marketplaces rely on some of payments automation to get the job done.
And 94% of executives surveyed said that innovations to AP platforms were the top priority when it comes to managing their ever-increasing volume.
Automation becomes increasingly important as the expected volume of transactions rises. Nearly half of the executives we queried at firms that manage at least 500 monthly payables said that they see payables automation as being “very” or “extremely” important — and the higher the volume is expected to rise (in terms of percentage points), the more important AP automation becomes.
Executives who look toward technology to help boost those payment efficiencies also look forward to some significant benefits. As many as 70% of online marketplace executives say their relationships with vendors will improve as they innovate AP platforms.
