Top 5 Reasons to Move to Digital Payments
February 7, 2023
Food and beverage businesses are moving rapidly to accept digital payments from their customers. In a recent survey, 94% of CFOs are prioritizing digital payments projects 1. If you’ve been thinking about accepting digital payments – or your customers have been asking about them – here are the top 5 reasons to make the move:
1. Improved cash flow: Digital payment methods help CAI customers get paid 24% faster, since funds are transferred electronically rather than being physically collected, and the payment process is much simpler.
2. Reduced costs: A modern, automated solution can slash the cost and time spent on invoice processing by removing labor-intensive manual processes. This improves efficiency, reduces errors, and frees your team to focus more on growth and less on AR. A study by the US Federal Reserve showed that digital payments can help reduce the cost per invoice by 59% 2 — between $4-8 per invoice. For some CAI customers who process 10,000-50,000 invoices per year, this could mean $40,000-$200,000 in annual savings.
3. Increased convenience for customers: Electronic payment options provide a convenient way for customers to make payments at any time and from any location, rather than being limited to certain hours or physical locations.
4. Enhanced security: Digital payment systems can be more secure than traditional payment methods, as they use encryption and other security measures to protect against fraud and data breaches. Food businesses can also reduce exposure when accepting higher risk customers by requesting digital payment before delivery.
5. Increased competitiveness: By offering digital payment options, businesses can compete more effectively in an increasingly digital marketplace where customers are demanding a consumer-style payment experience.
“B2B companies are reporting that they lose 4-10% of their revenue 3 due to inefficient AR processes, with Finance professionals spending 6-10 hours per month managing payments,” according to Ed Stone, Chief Customer Officer of CAI’s Food & Beverage division. Stone added, “A recent Association of Finance Professionals survey found that 75% of respondents4 said digital payments positively impacted their organization.”
“It’s no surprise that B2B ACH transactions have exploded 5 from $8 trillion in 2018 to nearly $12 trillion in 2022,” Stone said. CAI’s ERP solutions enable both ACH and credit card payments, allowing customers to add a handling fee to invoices if desired and provide their customers with a QR code to easily scan and pay an invoice from their mobile phone.
Learn more about CAI’s Food ERP and integrated payment solutions today by scheduling a call with a member of our team. Click here to get started!