Optimizing Your AP Payment Mix

How to Drive Efficiency and Maximize Value Through Better Payment Strategies

Accounts Payable (AP) processes often rely on a mix of payment methods, each with its own advantages and risks. However, optimizing this mix is critical to improving efficiency, reducing costs, and achieving operational excellence.

Why Optimization Matters

Optimizing your payment mix ensures that your organization can streamline workflows, reduce manual intervention, and lower processing costs. Leveraging advanced tools like Finexio’s software allows organizations to solve "beyond human scale" challenges, such as managing 1,000 suppliers with precision.

• 80% of organizations experienced attempted or actual payment fraud in the past year, exposing inefficiencies in traditional processes.¹
• Companies that digitize AP processes report a 30% reduction in payment processing time, allowing teams to focus on higher-value tasks.²
• Transitioning from checks to digital payments saves an average of $8 per transaction, according to a 2023 report by Nacha.³

Steps to Optimize Your AP Payment Mix

1. Analyze Your Current Payment Methods
   Assess the volume, value, and risk associated with each payment method. For example:some text
   • Checks are highly manual and costly.
   • ACH transfers are efficient but vulnerable to fraud.
   • Virtual cards offer strong security and automation but need supplier enablement.
   • Wire transfers are reliable for large payments but come with high fees.
2. Shift to Low-Risk, Low-Cost Options
   Transition from high-risk methods like checks to more secure and cost-effective options such as virtual cards and ACH transfers. Virtual cards, for instance, provide built-in fraud protections and cost-sharing incentives.
3. Adopt Predictive Analytics
   Use machine learning tools to predict which suppliers are likely to adopt electronic payments, ensuring a seamless transition.
4. Leverage a Unified AP Solution
   Platforms like Finexio consolidate payment delivery, reducing the administrative burden and integrating compliance checks directly into the process.

The Outcome

Optimizing your AP payment mix reduces costs, accelerates processing times, and ensures greater supplier satisfaction while enhancing operational efficiency.

Learn more:

Securing Your AP Payment Mix

Monetize Your AP Payment Mix

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Why Finexio?

Finexio is the only purpose-built platform for embedded payments and the only company that has an AI-backed payments fraud guarantee solution for optimizing, monetizing and securing AP payments.

Ready to transform your AP process?

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Sources

1. Association for Financial Professionals. (2024). 2024 AFP Payments Fraud and Control Survey Report. Retrieved from https://www.afponline.org/
2. Deloitte. (2023). The Future of AP Digitization. Retrieved from https://www.deloitte.com/
3. Nacha. (2024). Cost Savings in Digital Payments. Retrieved from https://www.nacha.org/