Connected payments: getting the most from your tech stack

Are you using your tech stack to its full potential? Got multiple programmes that don’t speak to each other? 

According to Cloudzero, a typical company in 2024 is using up to 254 software as a service (SaaS) applications and the average department uses up to 60 tools. You may only be dealing with one or two systems but your tech stack's potential is always limited by how well the applications all speak to each other. 

Connected and integrated applications on the other hand, with their ability to share data in real-time, enables your business to get the most out of your tech stack. Nowhere is this more important than when it comes to your payments. Payments are fundamental to the way you do business and get paid but are often a manual process in a world of digital applications. 

In this article, we’re going to look at the issues with siloed, disconnected payments and why integrated, connected payments mean more cash flowing into your business. 

What are siloed payments? 

Siloed payments are payments that are processed outside of your wider business systems, often done manually and initiated by the customer. For example, you’ve sent an invoice and you’re now waiting for your customer to send payment via their method of choice. In this instance you have no visibility over the payment itself or when it has cleared. 

Even if you collect card payments online, if they’re not integrated with your billing or invoicing platform they’re still a form of siloed payment. 

Siloed payments: The business impact 

Digital transformation is a key strategic priority for many businesses, ensuring data is able to flow seamlessly at any point of need. Payments are often overlooked in the drive for automation, with the status quo being chosen over simple, digital processes. 

Human error 

Manually searching through your accounts to see if a customer has paid their invoice and reconciling it leaves far too much room for human error. This can then create discrepancies in data and impact things like financial reports and forecasting. 

Lack of clarity

Without clear visibility over your payments and when you expect to receive funds into your account, it’s hard to know where you stand financially and the status of your cash flow. 

Waiting to get paid

Chasing customers for payments and manually reconciling payments can mean you’re waiting a long time to get paid for the goods and services you provide. Research from Forrester has found that 80% of US business leaders say it takes them more than 20 days to receive payment. The longer you wait for cash to land in your account, the less money you have to reinvest in the business or pay your suppliers. 

Customer experience 

Without adequate data transfer or clear visibility over where a payment is, you might be emailing customers for payments when they’ve already sent them. This can create a negative experience for the customer and make your operations seem less slick. 

What are connected payments? 

When your payments are properly connected, data around payment status, amount or any payment issues flow easily into your CRM, invoicing or billing systems. It means that you can see as soon as a payment has come in and reconcile it automatically. 

“Integrating GoCardless with Xero means that payments are automatically collected when an invoice falls due, and then auto reconciled once they clear. By getting rid of all that admin, GoCardless has saved us at least half an FTE in bookkeeping, worth around $25k annually.”

Wayne Findlay, CEO and Co-founder. The Back Room

Businesses working with GoCardless have found that there are multiple time and cost saving benefits from using automated and integrated payments. 

• 59% reduction in admin time spent managing payments and platforms 

• 21% improved efficiency for finance/accounts receivable teams

• 56% reduction in the overall cost of taking payments

• 47% average reduction in the time to get paid 

How to integrate your payments 

Integrating your payments should be easy with the right payment provider. GoCardless is integrated with over 350+ invoicing, CRM and billing systems. You can easily connect GoCardless to whichever system you use and start collecting payments automatically. 

Find out if your system is integrated with GoCardless and start automating your payments today.