For readers not familiar with these two fintechs, Payscout is a 2012 startup based in Los Angeles, offering gateway and merchant acceptance software and services, while Finexio is a 2015 startup out of San Mateo, specializing in accounts payable automation.
This release appears in The Paypers and explains at a high level the collaboration as a way to produce a better pay-to-posting experience:
‘Finexio’s B2B supplier network, combined with Payscout’s omnichannel payment processing solutions, will allow both companies to leverage their strengths with vertical-specific solutions…According to Finexio, this collaboration combines the AR payments processing and AP payments execution capabilities for medium, large and enterprise customers. With this partnership, Finexio and Payscout are escalating their commitment to accounts payable and accounts receivable solutions with customer — and supplier — oriented strategies for streamlining payments through state-of-the-art integrations.’
We have not had the benefit of a briefing to understand how the respective capabilities will integrate and flow, but in connecting the dots it would seem directionally on target. We recently released a report titled Receivables Management is Back on the Radar, in which we state:
“During the past several years, financial professionals have become much more aware of the latest-generation technology now available to improve their ability to effect financial process change and improvements…Generally speaking, the cash cycle priorities have been more closely associated with automating the payables processes, enabling data management for efficient workflow, intelligent payments routing, and integration with alternative finance options, leading to the more controllable working capital lever of days payables due (DPD), also known as days payable outstanding, or DPO. However, ….conversations with industry participants reveal a shift in the past year in recognition by treasury executives of how receivables technology fits into the equation.”
So although AP automation adoption is building, it highlights the need for a straight-through vision, which has benefits for both the buyer and supplier. In effect, more e-payments beget more receivables automation. So we’ll see how this works out but sounds like a good move.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
