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In this article, we will look at the difference between traditional and Smart invoicing.
Invoicing is a process that requires a huge amount of company resources and employee time. And the situation is often exacerbated by the fact that payment providers provide users with only the basic functionality to create them. This approach deprives payment service providers (PPUs) of the opportunity to offer customers a flexible commission option. Fortunately, innovative payment technology providers today are introducing a revolutionary new feature - smart invoicing, which will completely change the process of creating and issuing invoices.
In this article we will look at the difference between traditional and Smart invoicing, as well as get acquainted with the list of providers in whose systems this feature is implemented.
But before we get started, I propose to establish common terminology and see why the traditional approach no longer works.
What is Smart Invoicing?
Smart invoicing is a technology that allows you to fully customize commissions based on manually defined payment actions. This means that each PPU can independently determine what actions of its customers it deems necessary to tax, and the system will automatically enter these actions in the invoice at the end of the payment period. Moreover, it can also set commissions based on the industry, the type of customer's business, etc. The list of payment actions subject to commission does not end there, and this indicates that this technology can actually help many business owners from different industries.
Ultimately, the main goal of Smart Invoicing is to simplify the process of creating invoices, as well as reduce the resources used and time required to customize commissions. As a result, profit is expected to grow steadily.
The difference between traditional and Smart invoicing
Unfortunately, a huge number of payment service providers have not yet implemented Smart Invoicing technology. What do they offer their customers instead?
The traditional approach to invoicing allows business owners to charge commissions depending on the size of each individual transaction or total sales. This approach has worked in the past. But with the continued development of international e-commerce, this approach does not give PPUs the flexibility they expect from their payment providers. Fortunately, the Smart Invoicing feature offers an innovative solution to the problem.
Now that we understand the difference between a traditional and an innovative approach to invoicing, we propose to take a closer look at the specific benefits of Smart Invoicing for both businesses and payment solution providers.
Why payment service providers use Smart Invoicing
1. Increase profits.
Easy-customized commissions allow payment providers to monetize more payment actions easily and without complicating the process for the customer. All thanks to predetermined rules and payment actions. As a result, providers will be able to rent more without burdening the payment process.
2. Reduce time and resources.
Commission automation allows companies to significantly reduce the time spent by key team players on issuing invoices. This, in turn, gives team members the opportunity to focus their time and effort on other important business processes needed to stimulate business growth and expansion.
3. Reducing the cost of processing.
This technology fully supports the automation of commissions based on customer sales, business type, etc. Thus, payment providers will be able to significantly reduce the commissions offered to customers.
4. Increase customer flow.
As Smart Invoicing allows payment providers to reduce the cost of processing, it undoubtedly increases the level of loyalty of existing and stimulates the influx of new customers. And who, in fact, can be against such changes?
5. Achieving new industries.
The flexibility offered by customizing the commission structure opens many new doors for payment providers. Thus, those who previously specialized in low-risk niches will now be able to offer their services to business owners associated with high-risk businesses, thanks to the ability to set up automatic additional fees (such as a return fee) for a specific niche.
6. Simplification of invoice management.
Despite having dozens of Lego customizable payment triggers, invoice management is actually a fairly simple process. Thanks to Smart Invoicing technology, the system itself collects all the commissions together, performs calculations and forms a single invoice.