What to Look for in a Payment Automation Solution: A Buyer’s Guide

Key Features to Look For

1. Seamless Integration

A top-tier payment automation solution should work effortlessly with your existing ERP or accounting system—whether it’s QuickBooks, SAP, NetSuite, Workday, or Oracle. Smooth integration ensures:

• Minimal implementation disruption.
• Real-time data syncing.
• Less manual data entry, which currently accounts for 68% of AP processing.

Look for platforms with robust APIs, pre-built connectors, or plug-and-play capabilities that make integration hassle-free.

2. Multiple Payment Modalities

Your payment automation platform should support various payment methods, including:

• ACH Transfers
• Virtual Cards (fast-growing, with 61% of companies using them)
• Wire Transfers
• Checks (still used by 63% of companies for at least 25% of payments)

As electronic payments gain traction—now making up 62% of enterprise payments—having a flexible platform ensures you can meet vendor preferences while optimizing efficiency.

3. Robust Security Features

Security is a top concern, with 33% of businesses citing data protection fears as a barrier to full AP automation. The best solutions include:

• Single-use virtual cards to reduce fraud.
• Multi-factor authentication for secure user access.
• Encryption & tokenization to protect sensitive payment data.
• Real-time monitoring to flag suspicious transactions.

Ensure the platform provides end-to-end encryption, role-based access controls, and compliance with industry standards.

4. Vendor Enablement Support

A strong vendor enablement program makes digital payment adoption seamless. Look for:

• Dedicated vendor onboarding teams
• Communication tools to educate vendors
• Tracking systems to monitor adoption rates

Since 75% of medium-sized businesses still rely on paper or emailed invoices, effective vendor enablement is key to driving automation success and capturing early payment discounts—where top AP teams achieve up to 95% capture rates.

5. Real-Time Reporting and Analytics

Data-driven decision-making starts with detailed reporting. A robust payment automation platform should offer:

• Dashboards showing real-time payment statuses
• Reconciliation data with invoice tracking
• Metrics on cost savings and rebate generation

With 48% of AP leaders excited about improved financial reporting, and 80% of large finance teams expected to leverage in-house AI for financial decision-making by 2026, advanced analytics are a must-have.

6. Scalability and Customization

Your AP automation platform should grow with your business. Key features include:

• Support for increasing transaction volumes
• Customizable workflows that align with your processes
• API access for advanced integrations

The right solution can significantly boost efficiency—AP teams in automated environments process 23,333 invoices per FTE annually, compared to just 10,853 in manual setups.

7. Cost Efficiency and Revenue Opportunities

Consider the platform’s pricing structure and potential revenue benefits:

• Transparent pricing with no hidden fees
• Virtual card rebates and cashback programs
• Lower costs for check processing and admin tasks

With 53% of AP work still tied to manual invoice entry and classification, automation is a powerful tool for cutting costs and improving profitability.

Questions to Ask Providers

Before making a decision, ask potential vendors these critical questions:

• How long does implementation take? Ensure a clear onboarding timeline.
• What support is provided? Look for dedicated account managers and tech assistance.
• How does the platform handle compliance? Verify adherence to industry regulations.
• Are there any hidden fees? Get a transparent cost breakdown.
• What’s the rebate structure for virtual card payments? Understand the revenue potential.

Red Flags to Watch For

Steer clear of solutions that:

• Lack pricing transparency.
• Have weak security measures or outdated tech.
• Offer limited vendor support.
• Receive poor customer service reviews.

Conclusion

With only 18% of AP teams fully automated—despite 80% having some automation—there’s a massive opportunity to streamline processes, reduce costs, and improve security. The benefits are clear: fewer errors, faster approvals, and greater financial visibility.

Prioritizing integration, security, scalability, and vendor enablement will help you choose the right solution. As we discussed in our recent post, “The Hidden Costs of Manual Accounts Payable and How Automation Solves Them” making the switch isn’t just a smart move—it’s a necessity in today’s fast-paced financial world.

Ready to transform your AP process? Contact us today for a personalized demo and see how automation can drive real results for your business.