Businesses Embrace Payments Automation as Priority in 2025, According to American Express Research
Automation in Business Payments: A Growing Trend
Automation in business payments is gaining traction, with many companies embracing the benefits it offers. According to a study conducted by American Express, titled Amex Trendex: B2B Payments Edition, 1,000 U.S. business decision-makers were polled to understand the current landscape of business payments automation.
One of the key advantages of automation is straight-through processing for static and virtual cards, which offers fully electronic processing without manual steps. This results in enhanced cash flow visibility, more secure transactions, and increased operational efficiency. Automated AP and AR software solutions also reduce errors, save time, and money, contributing to improved cash flow efficiency.
Automated payment methods provide businesses with greater working capital flexibility, enabling them to invest in moving their business forward. Electronic Invoice Presentment and Payment (EIPP) offers streamlined electronic invoicing and payment acceptance, further streamlining the process.
However, concerns about security risks and cost are preventing many companies from fully embracing automation. The survey revealed that 26% of businesses are concerned about security risks, while 45% cite cost as a main reason for not implementing full payments automation. Perceived barriers continue to prevent many companies from fully embracing automation.
The study also found that late or slow payments have caused issues for businesses. In fact, 26% of respondents stated they have stopped working with a buyer or supplier due to late or slow payments. This highlights the importance of efficient and secure payment processes.
Despite these concerns, the survey showed that 91% of business decision-makers recognize that easy, streamlined, and secure payments drive business growth. In the USA, companies like BILL Holdings, a key company planning to automate payment processes in 2025, are providing software for payment automation primarily for small and medium-sized businesses with projected revenues of $1.46 billion for the year.
Interestingly, only 17% of businesses surveyed have fully automated their payments processes, while 15% have not automated any payments at all. A significant 28% perceive no benefit in automating their payments processes. However, 29% of survey respondents stated they would sleep better at night if they did not have to worry about payment accuracy and timeliness.
Four in five business leaders (82%) indicated that a single fraud incident could significantly impact trust in their business relationships. This underscores the importance of secure payment processes in maintaining business relationships. Widad Chaoui, Senior Vice President at American Express, stated that automated payment methods drive more cash flow visibility, more secure transactions, and better relationships.
In conclusion, while there are concerns about cost and security, the benefits of automation in business payments are clear. With increased cash flow visibility, more secure transactions, and improved operational efficiency, it's no wonder that many businesses are planning to change their payments processes, with business growth being the primary motivation for 43% of those planning to change.
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