At Interac, we know modernizing payments is integral to digital transformation. We spoke to Kenneth Fridman, VP of Finance at Interac, to learn how moving away from the cheque and paper process can enable digital-first teams to level up their payments systems and help transform their organizations into leaner, more effective and more strategic enterprises.<\/p>\n\n\n\n
Yes, Interac makes business payments using Interac <\/em>e-Transfer for Business <\/h2>\n\n\n\nWhen it comes to business payments, Interac pays vendors via Interac <\/em>e-Transfer for Business where possible. It\u2019s similar to the version of Interac <\/em>e-Transfer consumers use, but with features built to facilitate business payments<\/a>, such as transaction limits of up to $25,000 and rich remittance data.<\/p>\n\n\n\nThe convenience of a real-time payment is an especially preferable option for smaller suppliers, contractors, and consultants, who depend on getting paid right away. But the benefits flow in both directions.<\/p>\n\n\n\n
\u201cWhen people hear \u2018payments modernization,\u2019 they instinctively think about getting funds quickly and getting paid in real time,\u201d Kenneth says. \u201cThat\u2019s important, but from a business standpoint, payments modernization unlocks many other efficiencies.\u201d<\/p>\n\n\n\n
Three benefits of faster payments and finance transformation <\/h2>\n\n\n\nBenefit one: Using the rich data from digital payments can streamline your accounting processes. <\/h3>\n\n\n\n
Interac <\/em>e-Transfer for Business transactions include structured remittance data that can integrate with your accounting software. This can enable straight-through processing and the automation of a number of processes, helping finance departments reduce the amount of time they spend on what are traditionally labour-intensive tasks.<\/p>\n\n\n\nAt Interac, digital payments efficiencies mean we can spend less time on manual reconciliation, and more time on growth-oriented activities.<\/p>\n\n\n\n
\u201cWe’re building additional capacity through efficiency so we can have people within the accounting team doing more value add work,\u201d Kenneth says.<\/p>\n\n\n\n
And we\u2019re not alone. Seventy-seven per cent of financial professionals want their finance team to spend less time on transactional processes and more time on higher value-add functions<\/a>.<\/p>\n\n\n\nBenefit two: Switching to digital payments means getting a better handle on cash flow.<\/h3>\n\n\n\n
Traditional payments and processes take time. Electronic funds transfers (EFTs) may take several days to process, and cheques can take even longer. And yet, EFTs and cheques accounted for 42 per cent of total payment value for businesses in 2020. That\u2019s a lot of tied up capital. <\/p>\n\n\n\n
\u201cWhen you have transactions processing in real time, information is exchanged in real time, too, so you always know what’s in your bank account,\u201d Kenneth says. This enables business leaders to make strategic decisions and fund new projects.<\/p>\n\n\n\n
\u201cCompanies that hold on to large sums of capital without visibility into how it\u2019s being used miss out on strategic opportunities.\u201d<\/p>\n\n\n\n
Benefit three: Fuelling data analytics.<\/h3>\n\n\n\n
Because the rich data built into Interac<\/em> e-Transfer for Business transactions is ISO 20022-compliant, finance teams can gain access to a new reservoir of information by aggregating and analyzing data from transactions<\/a>. This data can help you inform you C-suite and feed into strategic decision-making. Think of it as a new tool to make your business more competitive.<\/p>\n\n\n\nModernizing business payments: It\u2019s easier than you think. <\/h2>\n\n\n\n
When it comes to digital transformation, there may be questions about onboarding, capabilities, and costs.<\/p>\n\n\n\n
\u201cWe surveyed Canadian business leaders to learn what digital transformation means to them. We found that while leaders understand the value of adapting, they can be hesitant,\u201d Kenneth says.<\/p>\n\n\n\n
In fact, 82 per cent of financial professionals reported that applying digital transformation to their function is a priority<\/a>. However, perceived barriers included cost (28 per cent of leaders cite this), technological capabilities (26 per cent) and a lack of education or information around making the shift (20 per cent).<\/p>\n\n\n\n\u201cModernizing payments isn\u2019t an \u2018end-to-end, do-everything-at-once\u2019 scenario,\u201d Kenneth says. \u201cIf you look at it that way, it could seem very costly and maybe a little scary.\u201d<\/p>\n\n\n\n
To rethink these barriers and start finance transformation at your organization, Kenneth advises finance leaders adopt a phased approach to modernizing payments.<\/p>\n\n\n\n
\u201cModernizing payments can be a gradual process,\u201d Kenneth says. Adopting Interac <\/em>e-Transfer for Business to pay small- to medium-sized contractors and vendors is how Interac took the first step.<\/p>\n\n\n\n![\"\"](\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\")
<\/figure>\n\n\n\nInterac launched Interac <\/em>e-Transfer for Business in response to the needs of real Canadian businesses<\/a>, so any organization can seamlessly level up its payments, migrating from paper and cheque to digital solutions. It\u2019s an off-the-shelf solution available via Canada\u2019s major financial institutions.<\/p>\n\n\n\n
The convenience of a real-time payment is an especially preferable option for smaller suppliers, contractors, and consultants, who depend on getting paid right away. But the benefits flow in both directions.<\/p>\n\n\n\n
\u201cWhen people hear \u2018payments modernization,\u2019 they instinctively think about getting funds quickly and getting paid in real time,\u201d Kenneth says. \u201cThat\u2019s important, but from a business standpoint, payments modernization unlocks many other efficiencies.\u201d<\/p>\n\n\n\n
Three benefits of faster payments and finance transformation <\/h2>\n\n\n\nBenefit one: Using the rich data from digital payments can streamline your accounting processes. <\/h3>\n\n\n\n
Interac <\/em>e-Transfer for Business transactions include structured remittance data that can integrate with your accounting software. This can enable straight-through processing and the automation of a number of processes, helping finance departments reduce the amount of time they spend on what are traditionally labour-intensive tasks.<\/p>\n\n\n\n At Interac, digital payments efficiencies mean we can spend less time on manual reconciliation, and more time on growth-oriented activities.<\/p>\n\n\n\n \u201cWe’re building additional capacity through efficiency so we can have people within the accounting team doing more value add work,\u201d Kenneth says.<\/p>\n\n\n\n And we\u2019re not alone. Seventy-seven per cent of financial professionals want their finance team to spend less time on transactional processes and more time on higher value-add functions<\/a>.<\/p>\n\n\n\n Traditional payments and processes take time. Electronic funds transfers (EFTs) may take several days to process, and cheques can take even longer. And yet, EFTs and cheques accounted for 42 per cent of total payment value for businesses in 2020. That\u2019s a lot of tied up capital. <\/p>\n\n\n\n \u201cWhen you have transactions processing in real time, information is exchanged in real time, too, so you always know what’s in your bank account,\u201d Kenneth says. This enables business leaders to make strategic decisions and fund new projects.<\/p>\n\n\n\n \u201cCompanies that hold on to large sums of capital without visibility into how it\u2019s being used miss out on strategic opportunities.\u201d<\/p>\n\n\n\n Because the rich data built into Interac<\/em> e-Transfer for Business transactions is ISO 20022-compliant, finance teams can gain access to a new reservoir of information by aggregating and analyzing data from transactions<\/a>. This data can help you inform you C-suite and feed into strategic decision-making. Think of it as a new tool to make your business more competitive.<\/p>\n\n\n\n When it comes to digital transformation, there may be questions about onboarding, capabilities, and costs.<\/p>\n\n\n\n \u201cWe surveyed Canadian business leaders to learn what digital transformation means to them. We found that while leaders understand the value of adapting, they can be hesitant,\u201d Kenneth says.<\/p>\n\n\n\n In fact, 82 per cent of financial professionals reported that applying digital transformation to their function is a priority<\/a>. However, perceived barriers included cost (28 per cent of leaders cite this), technological capabilities (26 per cent) and a lack of education or information around making the shift (20 per cent).<\/p>\n\n\n\n \u201cModernizing payments isn\u2019t an \u2018end-to-end, do-everything-at-once\u2019 scenario,\u201d Kenneth says. \u201cIf you look at it that way, it could seem very costly and maybe a little scary.\u201d<\/p>\n\n\n\n To rethink these barriers and start finance transformation at your organization, Kenneth advises finance leaders adopt a phased approach to modernizing payments.<\/p>\n\n\n\n \u201cModernizing payments can be a gradual process,\u201d Kenneth says. Adopting Interac <\/em>e-Transfer for Business to pay small- to medium-sized contractors and vendors is how Interac took the first step.<\/p>\n\n\n\n Interac launched Interac <\/em>e-Transfer for Business in response to the needs of real Canadian businesses<\/a>, so any organization can seamlessly level up its payments, migrating from paper and cheque to digital solutions. It\u2019s an off-the-shelf solution available via Canada\u2019s major financial institutions.<\/p>\n\n\n\nBenefit two: Switching to digital payments means getting a better handle on cash flow.<\/h3>\n\n\n\n
Benefit three: Fuelling data analytics.<\/h3>\n\n\n\n
Modernizing business payments: It\u2019s easier than you think. <\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2022\/09\/INT_Payments_Modernization_Upgrade-1024x971.png.webp\")
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![\"\"](\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2022\/09\/INT_Payments_Modernization_CTA-1024x270.png.webp\")
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