Making payments in the traditional way (either in person or manually) has been a generally cumbersome and problematic process for several companies, especially when several payments must be made simultaneously. Due to this problem, many companies currently have different financial tools developed by Fintechs, among which batch payments stand out. Below, we will learn more about this financial service.
What are batch payments?
The batch payment service is a financial tool that helps companies automate their payment processes, providing the ability to make payments to different beneficiaries in an automated way. Batch payments allow companies to make multiple payments with a single operation, thus automating and optimizing the process of group payments, whether to employees, collaborators, or suppliers, among others.
Main characteristics
The batch payment service has the following features:
Automated financial tool
Batch payments have the ability to reduce the number of individual transactions, in exchange for making payment of multiple invoices or accounts payable, as well as payment to multiple vendors or employees, all in one process, which helps to significantly reduce the percentage of manual errors during payment processes.
Generation of long-term payments
Batch payments have the ability to generate “long term” payments through the creation of long-term invoices, through these invoices, companies can process several outstanding payments to be executed in different timelines, especially using the “exchange rate” that is handled at the time.
Either by making batch payments for multiple invoices or by paying a single invoice in a series of partial payments, these can be scheduled as multiple payments until the total amount of the invoice is completed or until the due date set by the supplier.
Main advantages
The batch payment service has the following advantages:
Faster and more efficient payment processes
Because batch payment systems are automated and use modern technology platforms, they have the ability to help companies process large volumes of transactions quickly and efficiently, which is very useful in companies that handle a large number of daily transactions.
Minimizes manual errors
Another advantage of batch payments is that they have the possibility of minimizing the manual errors that generally occur when processing individual transactions, which helps companies reduce the problems generated in manual transactions, such as delays in payments due to date errors, duplicate payments, payments with erroneous amounts, among others.
Resource optimization
Through batch payments, companies can make multiple payments with a single transaction, which helps optimize a company’s most valuable resources: time and money. For example, batch payments decrease the time spent managing financial transactions, reduce energy consumption and operating costs associated with each individual payment, and lower individual transaction fee expenses.
Most common myths
Even though we have learned about some of the main features and advantages of the batch payment service, some myths have been generated around this financial service, the most common myths being the following:
Invoices cannot be paid with financing
One of the most common myths surrounding the batch payment service is that through this financial tool, it is not possible to pay invoices with financing since some people think that the scheduling of payments can only be made for the total amount of the invoices. However, the truth is that thanks to this service, companies can schedule partial and long-term payments (of invoices), where such payments will be executed until the total amount scheduled according to the invoice or due date is met.
High costs
Some people believe that batch payments generate high and unnecessary costs for the company using this financial service. However, as we have already learned, thanks to its features, the batch payment service helps companies minimize operating costs, especially the costs associated with individual transactions, since these can be grouped into a single operation.
What do you think about this topic, and do you want to know more about Pilsenga’s batch payment service?
If you are interested in Pilsenga’s products or services (among which is the batch payment service for companies), you can contact us by visiting the following link.
