By Michael Reed
Why is digitizing payments to commercial lockboxes so difficult, and is it possible to overcome these challenges? For years, innovation has been at a standstill for B2B payments because of the assumed friction to change existing ERP processes, regulations that require a physical check to exist, and problematic exceptions from manually sending remittance data.
In today’s payments landscape, an estimated 42% of business payments are made via paper check, which represents a $10.5 trillion of economic activity. In fact, approximately 900 million checks are written every year and end up in lockboxes.
Corporations recognize the value of digitizing their payments, but what can be done for the processes that still rely on paper-based checks? By creating a database of directories to match physical and digital addresses, a network-based payment platform can seamlessly convert checks to digital payments, while still upholding the existing security and regulation standards of a traditional check payment.
Until now, there has not been a combination of capabilities that enabled corporations to digitize their business payments to commercial lockboxes without redesigning the process for check issuance. Deluxe Corporation’s division president of payments, Michael Reed, will lead an in-depth discussion surrounding this industry-leading technology.
The presentation will include a panel moderated by Strategic Treasurer founder and managing partner Craig Jeffery and will feature industry leaders including Thomas Dean of ECHO Health, Inc., Alan Evanish of Bank of New York Mellon, and Laura Listwan of Fifth Third Bank. Each will share the unique benefits they have experienced by implementing a digital lockbox process—in addition to discussing the broader challenges that prevented it in the past.
In this session, “Is It Time to Digitize Business Payments to Commercial Lockboxes?” you will see:
- Why paper checks are still the default payment choice for a variety of industry verticals.
- Innovative linking of payments and lockbox technology enabling corporations to digitize their business payments.
- An overview of the payment platform that revolutionizes the way businesses pay and get paid by eliminating manual steps in the payment lifecycle.
- Key benefits experienced by both the payer and payee as a result of digitalization.
The shift to digital lockbox payments represents a paradigm shift in the industry. While the paper-based payment system once seemed unassailable, first adopters like these panelists are reaping the financial and operational benefits of an improved, digital process.
You will leave this session with essential information and tools needed to implement this new technology into your own organization’s processes. The future of business payments is digital. With this knowledge, your corporation can position itself as an industry leader with innovative technology to save money and improve payment settlement speed. We hope you will join us, either in-person or virtually, for this engaging session.
Don’t miss the AFP 2021 session, “Is It Time to Digitize Business Payments to Commercial Lockboxes?” and check out all the sessions on the AFP 2021 Session Explorer. Register for the conference here.