Paystand announced the launch of Smart Lockbox, the digital-first alternative to traditional lockbox services. Now, for the first time, businesses will have the keys to unlock a fully paperless cash cycle from payer to merchant — one that incentivizes customers to move to a digitized payment model that eliminates manual tasks and lowers operational costs for finance teams.
While interest in cryptocurrency and digital payments is on the rise for consumers, paper checks still account for over 40% of all B2B payment volume, and they rob the economy of anywhere between $550B and $1T in errors, delays and soft costs each year. For businesses, the hidden costs of paper checks are a source of drag on their bottom line, with the average cost of processing a single paper check ranging from $4 to $20 — translating into hundreds of thousands to millions of dollars in expenses for mid-sized companies. Smart Lockbox lets businesses shift their remaining paper-based payments to faster, cheaper and more secure digital alternatives by giving their customers a seamless one-click migration experience.
In the wake of the global pandemic, Paystand discovered that, while certain departments were able to make the switch to remote work almost overnight, finance teams faced a very different experience: due to security reasons and their reliance on paper and manual processes, many finance organizations were forced to risk their health by working from the office even when COVID-19 outbreaks were at their peak.
“In a post-pandemic world, everything looks very different,” said Jeremy Almond, CEO of Paystand. “COVID supercharged the push for digital transformation across the board for businesses, and there’s no question that this shift is here to stay. Smart Lockbox is the key tool that helps companies seamlessly bring their mission-critical revenue into the digital age. It’s designed to enable finance teams to turn their biggest headaches into a newfound source of power.”
Paystand’s Smart Lockbox was created to help finance teams transition away from archaic payment systems that keep them tied to paper processes and physical locations, and offers a fully digitized AR experience that simultaneously optimizes efficiency for remote teams and significantly reduces accounting overhead.
Smart Lockbox will integrate seamlessly with ERP systems so that finance teams can entirely bypass the process of manual data entry, remittance matching and reconciling deposits from paper check payments. More specifically, Smart Lockbox gives merchants:
- A one-click migration experience for existing paper check payers that digitizes all future check payments
- Remote remittance processes that eliminate DSO and trips to the bank
- Immediate visibility into cash flow through payment data that’s displayed as it comes in
- A centralized collections process and reduced receivables risk with 24/7 payment tracking
- Check information, reconciliation status and transaction details that are fully integrated into every user’s ERP system
Smart Lockbox is another step forward in Paystand’s mission to reboot the commercial finance industry. It’s designed to give businesses increased access to feeless, cashless and intuitive B2B payments that feel as effortless as PayPal or Venmo.
News item from Paystand