We all know that “faster” is consuming the payments space in our personal lives. And, with expectations of immediacy and a strong consumer voice, faster payments in the business space are becoming a necessity to stay relevant in an ever competitive drive for market share.
The consumer experience is taking over not just the need to pay your customers faster, but also the need to ensure they walk away feeling like the experience was effortless.
To think through how you must adapt your payments strategy, there are 4 key questions you need to ask yourself. Who do I need to pay? How quickly do I need to make these payments? What information do I have for these payees? And, what type of payment am I making?
I’m Theresa Clements, Global Product Management Manager for faster payments at Wells Fargo, and I’ll be walking you through each of these questions.
First, who do I need to pay? Are you paying a customer, an employee, or a supplier? When you think through who you need to pay, you also need to consider the benefits of faster payments for your business and for the payee.
Paying faster gives your business more direct control over when and how you those disburse funds. It also gives you a versatile payment option to incorporate into your business continuity plans for situations like providing disaster relief. Your payee appreciates receiving payment quickly and definitely has a more positive experience because of it.
Giving your payees options on how to pay you in a way that works best for them supports your goal of being paid faster. The flexibility you provide your consumers and other payees encourages fewer late payments and encourages the likelihood of keeping the data with the dollars. This can help you apply cash faster and, in many cases, reduce workload for your customer service teams.
Second, how quickly do I need to make the payment? Faster payments can be completed in a day, minutes, seconds versus a week or longer. How fast you need to make a payment can tie to a variety of business considerations. Is speed critical for customer satisfaction? Did you need to expedite a missed payroll run?
Think through your business needs and terms to have more control over your cash and the overall payment experience for the payee.
Third, what information do I have for the payee? Do you have the payee email address, phone number, bank account information, name and/or address? As you develop your strategy, this is a critical question. The type of information you have will guide the type of faster payment you can apply.
Start thinking about the faster payment strategy you’d like to roll out and make sure you obtain and maintain the data needed to leverage it.
And, fourth, what type of payment am I making? There are many use cases for the various faster payment types available today that can align best practices or inspire your faster payments strategy. From insurance claims payments “on the spot” to contractual commitments where dollars are required before goods are delivered, businesses are coming up with a new use cases every single day.
With the increasing speed of payments technology and heightened expectations in today’s market place, faster payments can help your company keep up with the pace of change. It’s a matter of aligning your business goals and objectives with what makes sense for you and your payee.
To learn more, please visit wellsfargo.com/treasuryinsights and listen to our webinar replay on this topic.
For more information, contact your Wells Fargo representative or fill out the Contact Us form on this site.