CEO of Akurateco
Issuing invoices might seem easy. And quite honestly, it can and should be exactly so. However, a lot of top payment providers complicate things by offering only the basic functionality in place to facilitate invoices on a day-to-day basis. Such an approach leaves little to no room for fee structure flexibility. The good news is that innovative payment technology vendors are transforming the way invoices are issued with a brand-new feature – Smart Invoicing.
In this article, we’ll explain the difference between conventional and Smart Invoicing as well as introduce you to a list of technology vendors offering this feature now.
But first things first: let’s establish the vocabulary. And discuss why the old way doesn’t really work anymore.
What is Smart Invoicing?
Smart Invoicing is a technology that allows full customization of fees based on specific payment action triggers. This means that every merchant can determine what actions he wants to charge the customer for. And the system will automatically bill the client for them at the end of the payment period. Moreover, the merchant can set up fees based on the customer’s industry, business type, etc. The list of payment action triggers goes on and aims to meet the needs of a variety of business owners.
All in all, the technology aims to simplify the invoicing process, allow merchants to charge more with less time and resources needed for the fee customization, and, as a result, grow merchant’s revenue exponentially.
The difference between Smart and Conventional Invoicing
Unfortunately, a lot of payment service providers still don’t have Smart Invoicing in place. So, what are they offering instead?
The functionality they offer allows either to charge per-transaction fees or set up rates based on the individual’s sales volume. While this might have been enough in the past, today, with the diversification of cross-border e-commerce, this technology doesn’t provide the flexibility an average online merchant is expecting from a payment facilitator. Online businesses now expect payment platforms to offer full customization of fee structures. And it’s possible with the introduction of Smart Invoicing.
With this being said, let’s explore specific benefits Smart Invoicing offers to business owners and payment service providers.
Why payment service providers need Smart Invoicing
1. Increased revenue.
Customizable fee structure allows PSPs to smoothly charge their clients more. All thanks to predefined rules and payment actions. As a result, they’ll seamlessly bill more while keeping the payment flow smooth and friction-free.
2. Saved time and company resources.
With fee structure automation, the company gets to shave off hours of work currently performed by their key team members. This allows your team to focus on other core business activities. So, you end up having more resources at hand to invest in business growth and expansion.
3. Reduced processing costs.
The technology supports automation and easy customization of fees based on customers’ sales volumes, business type, etc. Thus, payment providers get to adjust their rates significantly in the client’s favor.
4. More customers.
Since Smart Invoicing allows the payment providers to cut processing costs and save clients’ money, those offering this feature are more likely to see growth in customer loyalty and a significant customer base expansion overall. And let’s be honest, who’s not on board with this?
5. New industries reached.
The flexibility that comes with fee customization opens new doors for payment providers. Thus, providers catering to low-risk businesses will be able to easily adapt their rates and set up additional fees for high-risk businesses (e.g. chargeback fees), and vice versa. This means more reach and, consequently, more customers.
6. Simplified invoice management.
Despite having dozens of customizable payment actions in place, invoice management is extremely simple. The technology will collect all the fees, do the calculations for you and send all the results in a single invoice.
Now, these are but a few benefits of Smart Invoicing for your business. Staggering, right? So, if by this time you’re wondering which payment service providers offer this feature, read on. We’ve got you covered.
Who offers Smart Invoicing?
Akurateco is a Netherlands-based white-label payment service provider with 15+ years of experience in the payment industry. The company offers two fully-brandable payment solutions – a payment gateway and Cashier, a SaaS payment platform. Both of these products support Smart Invoicing and have a handful of other cutting-edge features:
– Smart routing and cascading to increase one’s transaction approval rate by 30%;
– A payment calendar to keep track of finances you’re to expect, to pay, and when they’re due;
– State-of-the-art fraud and chargeback prevention system;
– A variety of mobile SDKs to easily enable mobile payments in your app;
– Simplified data management to consolidate all the data in one place.
Akurateco offers a fully-automated checkout experience, top-of-the-industry security measures, and competitive fees. And you can get a free Demo of their system here so you can make an informed decision.
2. Ikajo International.
Ikajo International is another payment service provider offering Smart Invoicing. For a decade now, they’ve been delivering their services to high-risk merchants across 170+ countries. Their other benefits include:
– An extensive acquiring network;
– 70+ connectors to banks and payment methods;
– API and HPP integration;
– Free recurring billing;
– Dedicated customer support.
The payment gateway by Ikajo is easily customizable and allows for fine-tuning the cash flow to meet your specific business needs. They claim they can get you started within a couple of business days if you have your site, documentation, and technical integrations prepared.
While Smart Invoicing is incredibly useful and beneficial to businesses, only a handful of payment service providers have it developed and integrated in their payment systems. However, if you’re looking for ways to boost your revenue and improve customer loyalty with this technology, we’re here to help! Request a free Demo of Akurateco’s white-label payment system today to see how you can use cutting-edge technology to start your own PSP or improve existing customer checkout experience.
Vladimir Kuiantsev is the CEO of Akurateco, a cutting-edge SaaS platform with 70+ connectors catering to international businesses. With 10+ years of experience in the payment industry, he’s successfully founded and grown two major payment startups before becoming an executive at Akurateco.