How to eliminate 5% hidden costs in digital payments

Why manual effort kills most of your gain in accepting digital payments

Payment managers and marketing experts alike, are keen on optimizing the conversion rate and lowering costs related to digital payments in an online shop. aye4fin consults in these areas as well. However, in most projects, we need to go past the checkout conversion and dive deeper. What we find then, is a dimension that is tough to analyze and optimize and is in more than 50% of cases the reason for a process cost increase: the manual rework and reconciliation in Finance and Accounting.

In most cases we see, the integration of digital payments is done only semi-automated to Accounts Receivable, Banking, and General Ledger. In order to fully reconcile the payment received, a manual effort of 3 to 12 minutes per transaction, is required.

What does this mean for your business?

What you might be thinking now and what we have become accustomed to hearing is: “5 minutes will not kill us”. But what if it does?

Just for the fun of it, let’s do the math: Your employee earns 15€ per hour, meaning 25 Cents per minute. So, in reality, those extra five minutes, which easily turn into ten or fifteen, cost you at least 1,25€. If your initial payment received was 25€, this would mean an additional cost of 5% to the initial business.

How can we find these inefficiencies?

At aye4fin we use process mining technology that derives anonymized data from several points along the customer and payment journey. This data is then loaded to a self-developed data- and process-analytics tool. This tool is using trained algorithms and the speed of cloud computing to find patterns. Using the results provided from this analysis, we conduct consulting on automation potential and PSP optimization all regarding the backend process integration of your digital payment business.

Through the help of process mining, we find the root cause of minutes spent on digital payments in the back office. With our experience in payment optimization, process automation, and intelligent routing, we will save those minutes and a big portion of your gains paid with digital payment methods.

If you cannot believe the figures above, contact our experts and see where we will find the minutes and hours by having an eye on finance for you.

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