According to the 2023 McKinsey Global Payments Report, global payments revenues surged by 11% in 2022, exceeding $2.2 trillion. A significant driver behind this growth is the widespread adoption of automated and digital payment solutions.
As more companies embrace automation, the benefits become undeniable. Payment automation is more than just a convenience—it’s becoming necessary in the modern business ecosystem.
Businesses are adopting payment automation for growth
Payment automation is using technology to manage and process payments without manual intervention. Instead of relying on human oversight, automated systems handle repetitive payment tasks, ensuring transactions are processed accurately and on time.
The advantages of payment automation are clear.
- Businesses that adopt these systems enjoy numerous benefits, including reduced human error, improved efficiency, and cost savings.
For example, finance teams using automated payments can save up to 500 hours per year, according to a report from the CFO. These savings allow teams to focus on more strategic initiatives rather than spending time on manual, repetitive tasks. - Automation also reduces the risk of fraud. Since automated systems are programmed to follow specific protocols and safeguards, they can detect irregularities faster than human eyes.
- Another significant benefit is scalability. As companies grow, their payment needs become more complex. Automating payment processes allows businesses to manage increased transaction volumes without expanding their teams or investing heavily in additional resources.
The bottom line?
Payment automation leads to faster, more efficient transactions, and businesses implementing these systems gain a competitive edge. It’s no longer a question of whether to automate but when.
Clients are creatures of habit; Incentives could drive change
Humans are creatures of habit. Once they find a payment method that works for them, they often stick with it. Such practices make it challenging for businesses to persuade clients to adopt new payment systems, even when automation offers clear advantages. However, offering the right incentives can encourage companies to make the switch.
For example, hotels, eCommerce platforms, and large-scale chain businesses that operate globally could benefit from offering incentives like discounts or loyalty points to clients who use automated payment systems. These perks can make the transition smoother for businesses, allowing them to enjoy the benefits of automation without feeling like they’re taking a risk.
Global companies, in particular, benefit from using automated systems. These systems eliminate the complexities of handling transactions in different currencies and time zones, leading to faster processing times and fewer errors, which improve customer satisfaction.
Businesses that offer incentives to adopt these automated systems stand to gain. They can attract more clients and position themselves as forward-thinking and efficient, traits that appeal to today’s tech-savvy consumers.
The future of automated payments
Looking ahead, the demand for automated payments will only grow. More businesses are recognizing the value of integrating these systems into their operations. Businesses that adopt automation now will be better positioned to thrive. Those who hesitate may be outpaced by competitors who have streamlined their processes and maximized efficiency.
Ultimately, automated payments are about more than saving time or reducing errors. They represent a fundamental shift in how businesses operate. By embracing this technology, companies can free up resources, improve security, and create more scalable, resilient operations. Payment automation is the future, and businesses that get on board now will reap the benefits.