Navigating the Changing Payments Landscape: AP Trends To Know in 2024

Across industries, 2024 trends in AP payments are expected to significantly impact how financial transactions operate. The rise of digital payment methods, the increasing importance of sustainability, and the growing reliance on automation have all urged procurement leaders to stay on the cutting edge of financial tech.

Explore the top 10 AP Payment Trends To Know in 2024, and thrive during this once-in-a-generation technological evolution.

1. Adoption of AI - The power of AI will continue to evolve to deliver more sophisticated and efficient financial management tools to AP processes. It can identify patterns and anomalies that may go unnoticed by humans, monitoring transaction frequencies and amounts to flag potential fraud risks. Additionally, the power to automate routine tasks and streamline invoice processing will enhance overall operational efficiency.
2. Total Integration - Integrating payment services into Accounts Payable and Procurement software simplifies processes and distills multiple systems into one platform. Reduce time and resource-intensive processes to enhance AP efficiency, and minimize errors and risks linked to traditional payment methods.
3. Centralized Payment Analytics - Accounts Payable is undergoing a shift towards data-driven decision-making, emphasizing analytics for effective financial management and strategic planning. Centralized payment analytics provide a 360-view crucial for optimizing schedules, negotiating favorable terms, and making strategic decisions. Having all of your data housed in one system simplifies complex analytics functions.
4. Accounts Payable into Value Powerhouse - Finance and AP leaders are investing in transforming teams into efficient units that contribute to business growth. A shift in perspective recognizes AP teams as potential revenue generators rather than just cost centers. Strategies like dynamic discounting along with revenue-generating payments such as virtual cards and premium ACH revolutionizes payment organizations into value generators.
5. Fraud Prevention - As the demand for electronic payments increases, so does the associated risks. Organizations are seeking to reinforce payment security infrastructure and implement effective fraud detection systems. Solutions like single-use payment options offer enhanced data protection and strict spending limits to hinder fraud opportunities.
6. Reduced Manual Processes and Touch Points - Organizations are integrating automation to lower fraud incidents, reduce operational costs, and improve transaction accuracy. Automating AP processes minimizes manual entry and human decision-making. Not only reducing opportunities for fraud, but freeing your team to focus on more strategic initiatives.
7. Shift Towards Electronic Payments - Growing payment fraud risks, and the need for more efficient AP processes, are fueling AP teams to prioritize the shift to electronic payment methods. This transition brings increased efficiency while offering advanced security features, faster processing times, and improved cash flow management. Additionally, electronic payments also help mitigate risks for suppliers by offering faster and more secure transaction methods.
8. Faster Payment Processing - Faster payment delivery through methods like same-day ACH transfers or virtual cards has been demanded by both buyers and suppliers. This strategic shift accelerates payment processes to allow better cash utilization for short-term investments or operational needs. Faster payments also provide opportunities for negotiating improved payment terms with suppliers, including discounts for early invoice payments, leading to enhanced cash flow.

Explore all the latest AP Payments trends now. Download our eBook, "The Top 10 Must-Know AP Payment Trends for 2024," or schedule a meeting with your dedicated JAGGAER representative today.

By staying ahead of the curve on these AP payment trends for 2024, you can create value from your procurement, and position your business for success.