As the football season kicks off, the excitement of watching teams strategize and execute winning game plans is in the air. Every successful team knows that victory on the field isn’t just about raw talent – it’s about having a solid game plan, understanding the competition, and executing flawlessly.
The same principles apply when it comes to convincing your suppliers to accept electronic payments. Just as coaches need to understand the challenges their team faces, accounts payable (AP) and finance leaders must recognize the reasons suppliers may be hesitant to transition to electronic payments and develop a strong supplier enrollment program to overcome those obstacles.
This article shows you how to develop a winning game plan for electronic payments adoption.
Understanding the Opposition
Before crafting your game plan for supplier enrollment, it’s crucial to understand why some suppliers might be reluctant to switch from traditional payment methods like checks to electronic payments.
Here are some of the top reasons suppliers may resist:
- Fear of change. Just like a football team that’s hesitant to try a new play, suppliers may be resistant to change due to concerns about the unknown. They may worry about potential disruptions to their cash flow, or the learning curve associated with new payment systems.
- Cost concerns. Suppliers may perceive electronic payments as more costly, especially if they’re unaware of the long-term savings associated with streamlined receivables processes.
- Security concerns. In the same way that a winning team prioritizes protecting the football, suppliers may be concerned about the security of their financial information. Suppliers may fear that electronic payments could expose them to fraud or cybersecurity threats.
- Preference for familiarity. Some suppliers have been receiving paper checks for decades and feel comfortable with a payment method that they know well. Asking them to switch may seem as challenging as asking a football team to abandon its tried-and-true playbook.
These are the obstacles that buyers may face in driving towards electronic payment adoption.
Crafting Your Game Plan
Just as a football team prepares for a game by analyzing the opposition and developing a playbook, your organization needs to create a comprehensive supplier enrollment program that addresses supplier concerns and highlights the benefits of receiving electronic payments.
Here’s how you can develop a winning strategy:
- Educate and inform. Start by educating your suppliers about the advantages of receiving electronic payments. This includes faster receivables processing, improved cash flow, reduced administrative burdens, and less risk of fraud. Provide case studies or testimonials from other suppliers who have successfully made the switch to electronic payments.
- Highlight the long-term savings. Address cost concerns by showing suppliers how receiving electronic payments can save them money in the long run. Point out that while there may be a cost to accept some methods of electronic payment, the reduction in manual receivable processing and faster access to funds can result in significant savings.
- Emphasize security. Reassure suppliers that electronic payments are secure by discussing the robust security measures your organization has in place. Explain how features like audit logging, the encryption of remittance details, multi-factor authentication, and real-time visibility into the status of electronic payments work to protect their payments. Also be sure to mention the control built into virtual cards, such as configurable dollar limits and ranges.
- Offer incentives. Just like a coach might offer rewards for excellent performance, consider offering incentives to suppliers who adopt electronic payments. This could include expedited payment terms for suppliers willing to receive virtual card payments or ACH transactions.
- Provide ongoing support. Make it easy for suppliers to transition by offering training sessions, webinars, or dedicated support teams to answer questions and guide them through the process. The easier you make it, the more likely they are to embrace change.
- Be patient and persistent. Finally, remember that convincing suppliers to change their payment methods is not a one-time conversation. Like a coach who adjusts the game plan as the game progresses, you may need to revisit discussions with suppliers, address new concerns, and continue to promote the benefits over time to the outcome that you desire.
These strategies are essential to a winning game plan for electronic payments adoption.
You Don’t Have to Go It Alone
Just as a football team relies on the expertise of specialized coaches and trainers to achieve peak performance, your AP organization doesn’t have to tackle supplier enrollment on its own.
While developing a strong game plan is crucial, you can also leverage the supplier enrollment services offered by best-in-class fintech companies to drive adoption of electronic payments. Fintech companies bring industry expertise, advanced technology, and dedicated enrollment and support teams to the playing field, making it easier to convince your suppliers to make the switch.
Collaborating with a fintech company can significantly increase your success rate in converting suppliers to electronic payments. By utilizing these specialized services, your organization can accelerate the adoption process, reduce friction, and achieve greater efficiency and cost savings.
Scoring the Winning Touchdown
A successful football team is built on preparation, strategy, and execution. Similarly, convincing your suppliers to accept electronic payments requires a thoughtful approach, a clear understanding of their concerns, and a well-executed supplier enrollment program. By developing a comprehensive plan that educates, supports, and incentivizes your suppliers, you can lead them to embrace electronic payments. With the right game plan, and by leveraging the expertise, technology, and services of fintech companies, your organization can score the winning touchdown by increasing supplier adoption of electronic payments, improving efficiency, and strengthening your financial operations.
