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In this era of digital transformation and growing customer expectations, CFOs face a complex challenge: effectively managing large-scale payouts while streamlining business transactions across diverse payment methods.
To gain insights into this critical landscape, we spoke with Mark Brousseau, President of Brousseau & Associates, a leading authority in the payments and document automation space with over two decades of experience advising top providers. Mark joins us today to share his expertise on the key trends shaping CFO strategies for managing large-scale payouts and simplifying business transactions with diverse payment methods.
Q1: Mark, based on your extensive experience, what are some of the most significant trends you’re seeing in the way CFOs are approaching large-scale payout management? How are these trends. impacting their strategic decisions?
It’s a pleasure to connect with you.
Three major trends are reshaping the way that CFOs manage large-scale payouts:
First, in today’s uncertain economy, every CFO wants to do more with less. And optimizing their large-scale payouts is one way to do that. Embedding payment capabilities within an organization’s ERP or accounting software makes it a snap to initiate payments, facilitates the touch-free reconciliation of payments and bank statements, and virtually eliminates the possibility of having to reissue a payment because it became lost or misplaced. Mass payout solutions also accelerate the financial close and reduce the possibility of errors.
Second, CFOs are looking for ways to optimize their working capital and accelerate cash flow. Here again, automated mass payouts can help. The efficiencies provided by digital payments create more opportunities to capture early payment discounts. Some methods of making mass payouts enable organizations to extend their Days Payable Outstanding (or DPO). Organizations can more tightly manage the timing of electronic payments. CFOs can instantly see the status of payments. And organizations can earn rebates on virtual card payments.
Finally, CFOs want to mitigate the risk of payment fraud. CFOs understand the significant – and in some cases, irreparable – damage that cyberattacks and payment fraud can have on an organization’s financial health and reputation. From access controls and segregation of duties to audit logging and data encryption, mass payout solutions have built-in controls that help a CFO mitigate their organization’s risk.
Q2: As the landscape of payment options continues to expand, how can CFOs effectively navigate the complexities of diverse payment methods while ensuring secure and efficient processing of payouts?
Navigating all the options for mass payouts can overwhelm even the most tech-savvy CFO. Here is some advice for choosing the right solution:
First, understand your needs. Ask yourself: How often does your organization make mass payouts? What is the average number of recipients? Do you need to support domestic and international payments? What are the preferred payment methods of your recipients? And what existing systems will the mass payout platform need to integrate with.
Next, take a hard look at the options available for automating mass payouts. Look for partners that offer features such as automated batch uploads, support for multiple payment methods, real-time settlement, integration with your existing systems, and robust security protocols. Also be sure you understand the pricing structure for each solution and determine whether it fits your budget.
Finally, think beyond technology. Carefully consider whether prospective technology partners offer reliable and responsive customer support. Research each platform’s reputation for reliability and customer satisfaction. And choose a solution that can handle your current needs and future growth.
Q3: You mentioned embedding payment capabilities within ERP and accounting software as a key trend, which is an excellent way to streamline processes. However, beyond merely offering a variety of payment options, how can CFOs ensure a seamless and positive payment experience for their recipients, particularly when managing large-scale payouts? What are some best practices for integrating payment options into their systems while maintaining a user-friendly experience?
Delivering a user-friendly experience is essential for organizations making large-scale payouts. I believe there are three steps to ensuring a positive experience for recipients.
Step 1: Communicate. Let recipients know the details of their payout, including the date, amount, payment method, and the purpose of the payout (if that’s necessary). Use the communication channel that each recipient. prefers, whether it’s email, text, or through a portal. And be clear and concise in your communications. This means no jargon or complex terms! Explain things in a way that the recipient will understand and will be less likely to result in inbound calls.
Step 2: Be clear. Explain the exact amount recipients will receive and provide a breakdown of any deductions or fees, if applicable. If your recipient base is diverse, have a plan for communicating payout information in multiple languages.
Step 3: Make things convenient. Offer payout methods that make it easy for recipients to access funds. Real-time settlements or instant access to virtual cards may be options, if your business case requires fast payments. Additionally, provide a user-friendly online portal where recipients can track their payout. status, download statements, or update their payment information. And have a plan for offering customer support to address any questions or concerns that recipients may have regarding the payout process.
By following these steps, your organization can do more than pay it’s customers, it can “WOW!” them.
Thank you, Mark, for sharing your expertise on large-scale payout management. Your insights on embedded payment capabilities, robust security measures, and diverse payment methods were invaluable. Your advice on ensuring seamless, user-friendly payment experiences was particularly enlightening. I look forward to staying updated on the latest trends in this dynamic field.
