Payments as a Service (PaaS) is a business model that allows companies to outsource their payment processing to a specialized provider.

One specific aspect of PaaS that can be extremely beneficial for companies is the ability to outsource the paying of vendor invoices. This can help companies save time, reduce costs, and improve the overall efficiency of their vendor management.

One of the main advantages of PaaS for vendor invoice payments is the ability to automate the process. Many PaaS providers offer software platforms that can automate the payment process, from invoice receipt to payment.

• This can help companies save time and reduce errors by eliminating the need for manual data entry.
• Automation also ensures that vendor invoices are paid on time, reducing the risk of late payment penalties.
• According to a report by the Institute of Financial Operations, automation can reduce the time required to process an invoice by up to 50%. This can lead to significant time savings for companies.

Reduce Costs

PaaS providers also help companies reduce costs associated with vendor invoice payments. By outsourcing the process, companies can avoid the costs of maintaining their own payment infrastructure, such as hardware and software.

Additionally, PaaS providers may be able to negotiate better rates with banks and payment processors, which can result in cost savings for the company. According to a report by the Hackett Group, outsourcing can lead to an average cost savings of 14% for companies.

Vendor Management

Another advantage of PaaS for vendor invoice payments is the ability to improve the overall efficiency of vendor management.

• By outsourcing the process, companies can free up resources to focus on other aspects of vendor management, such as sourcing and performance evaluation.
• PaaS providers can also provide valuable analytics and reporting, which can help companies identify patterns and trends in their vendor invoice payments.
• This information can be used to improve vendor selection, negotiation, and performance management.
• According to a report by Gartner, effective vendor management can lead to a reduction in costs and an increase in the quality of goods and services.

More Flexibility

In conclusion, Payments as a Service (PaaS) can be a valuable tool for companies looking to outsource their vendor invoice payments.

By outsourcing this process, companies can automate the payment process, reduce costs, and improve the overall efficiency of their vendor management. PaaS providers can offer a wide range of solutions that can meet the specific needs of companies, from basic invoice processing to advanced analytics and reporting.

This allows companies to have a more flexible and cost-effective solution for their vendor management.

When outsourcing a process, companies should conduct a thorough research of the PaaS providers available, in order to find the one that best suits their needs, and review their references and track record.

Rillion Pay

Rillion Pay is a comprehensive electronic payment solution that gives you:

• Payment Delivery to 100% of Your Suppliers – You send a single payment file from Rillion AP Automation, and we take it from there.
• Comprehensive Payment Options – Immediately take advantage of modern electronic payments including virtual cards, ACH, Enhanced ACH, eCheck, and more.
• Trusted Payments Operations Team – We remove the burden of exception handling, disputes, and manual supplier communication from your AP team.

Find out more about Rillion Pay here.