Retailers are embracing tech payment companies and it's becoming clear the trend isn't slowing down.
Libeo: Published 9th Jan 23, updated 2nd Feb 23
Thirty-one percent of manufacturers that have not previously invested in finance and payments applications are now making investments or planning to do so, report from PYMNTS says. With incoming investment plans focused on enhancing procurement efficiency.
The retail industry is undergoing a revolution.
As consumers continue to shift their spending habits and focus more on experiences, retailers are looking for ways to ensure they stay relevant in the digital age.
With a variety of payment processors available to consumers, businesses are looking for ways to streamline the procurement process. According to research from PYMNTS, this is one of the top priorities for retailers in 2023. The report found that:
53% of manufacturers are investing in improvements to procurement functions.
23% retailers are planning to invest in improving procurement applications.
44% of manufacturers are planning to improve working capital and credit systems.
For both retailers and manufacturers, the financial functions that are investment priorities are procurement and accounts payable. Retailers want their suppliers to offer multiple payment options so they can accept different forms of currency and credit cards without having to invest in additional hardware or software.
In order to do so, they are looking at new technologies such as mobile wallet payments and artificial intelligence (AI). The goal of these technologies is to help retailers eliminate redundancies in their supply chain and improve efficiency through paperless transactions.
The biggest challenge for retailers is how to streamline the procurement cycle from suppliers to store locations. The traditional system requires a lot of manual work that takes up a lot of time and resources. This can significantly delay delivery times. In addition, it also increases the cost of doing business because brands need more staff members to manage orders and inventory levels manually.
In order for retailers to be successful in today’s competitive environment, they need to upgrade their accounts payable systems so that they can automate these processes using artificial intelligence (AI) systems such as machine learning and predictive analytics tools that can analyze data from multiple sources such as invoices, shipment data, etc.,
This implies upgrading any accounts payable (AP) systems so that they can be integrated with new ERP systems — providing seamless data flow between them — and can also handle today's more complex workflows and requirements.
To stay relevant, retailers need to keep up with changing consumer preferences, evolving technologies and new business models. In this context, the importance of digitalization cannot be overstated: it is essential for retailers to make their businesses more efficient and profitable by leveraging technology to improve operational efficiency, customer experience and brand loyalty.
Mobile wallets are expected to become an integral part of the purchasing process for consumers. Mobile payment services will be widely adopted by consumers in 2023 as well as by retailers. The key factors driving this trend include convenience, security and ease of use.
Retailers are also under pressure to deliver more personalized shopping experiences that can only be achieved by using data-driven solutions that help them understand their customers better.
In addition, they must integrate their supply chain processes seamlessly with their IT systems so that they can operate efficiently at scale while maintaining high quality standards.
At this point in time, one thing is certain: retailers must continue investing in digital transformation initiatives if they want to remain competitive in the long run.
With new technologies offering customers to chose between a range of payment processor companies (credit card, PayPal, Stripe, Aeropay, etc.) when shopping online or in person, one must wonder why paying suppliers can't be that simple.
Actually, it can be.
The first step is to create a centralized hub where all your accounts payable can be stored and updated in real time. This includes information like supplier name, address and contact details as well as their payment terms and product catalogs.
Once you've done that, get rid of manual processes which slow down the whole process and introduce errors — such as spreadsheet-based spreadsheets that track invoices from each supplier. Instead, use a software solution that automates this entire process for you so you can focus on growing your business instead of managing it.
Next up: streamlining your procurement cycle by automating payments directly from this central hub (e.g., bank account). This means no more manual checking or calling into accounts payable every time a supplier sends an invoice — instead, the money gets debited automatically from the bank account and paid out automatically via BACS transfer.
As a retailer, you need to quickly manage bulk payments across diverse suppliers in a way that is clear and transparent.
Contact us today for a free trial and see how easy it is to pay your suppliers the way you want!
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