(00:05) Thank you very much for joining today's webinar. We've got a huge number of webinars coming up, and it's great to see some familiar names among the attendees. I'm glad you're enjoying the content. Let's start today's fireside chat. It's a bit different from some of the other webinars we've run, but we're giving this one a go. Hopefully, it works well. Let me introduce myself—I'm Nick Cooper, the CFO here at ezyCollect. Alongside all things finance, I also handle credit risk and the work we do around fraud protection. I'll let my co-hosts, Jane and Ricardo, introduce themselves.
(00:32) Thank you, Nick. Good morning or good afternoon, wherever you're joining from. Thanks for being here. My name is Jane Evio, and I'm the Head of Customer Success here at ezyCollect. I also look after the payments operation side of things. I'm really glad you could join us today. I think this will be really interesting and fun; we have some cool topics to talk about. I'll pass it over to my colleague, Ricardo.
(01:03) Hi everyone, I'm Ricardo, the CTO here at ezyCollect. It’s been a pleasure being part of the journey so far, helping out with the tech and product side of the business. I'm excited to share some of the things we're working on.
(01:34) Excellent. Just before we continue with the agenda, I wanted to mention a few housekeeping rules. This webinar is in listening mode only, so if you have any questions, there’s a Q&A chat box where you can pop in your questions at any time. We'll keep an eye on it and answer your questions along the way, or we'll save some time towards the end. Also, feel free to say hi in the chat and let us know where you're joining from today. Please make sure you can all hear us clearly—that’s important.
(02:09) We're all in our Sydney head office. We wish we were in a warm, cozy den with snow outside, but since that’s not the case, let’s get started because we have a lot to cover today.
(02:41) Awesome. As I mentioned, this is a Q&A fireside chat focusing on how to eliminate late payments and make 2023 the year for business growth. We know there are many challenges out there, and we want to have this conversation in that context because we can't ignore them. We’re going to walk through the three biggest trends we see in B2B payment tech, and we’ll give you some insight into our roadmap before jumping into the Q&A if time permits.
(03:09) So, let's get into it. The next slide—you’ll have to pardon the pun here—"Winter is Coming." This applies both seasonally and in terms of the looming economic storm with high inflation and rising interest rates. It’s nothing new; it’s been predicted for months, but it’s still continuing. We don’t know when inflation or interest rates will stop rising. Unfortunately, that’s out of our control. These factors increase the cost of borrowing, reduce consumer demand, and ultimately erode profits. We have some levers to pull as business owners—you can raise prices, but that has negative effects on customer loyalty and competitiveness and may fuel more inflation. Improving efficiency is an option, but that takes time, and the benefits aren’t immediate. Diversifying markets, whether by-products or geography, is another strategy, but that also takes time. However, one thing remains true: controlling cash flow and working capital is still, and always will be, the lifeblood of any business. Focusing on these areas will help future-proof our businesses as we head into 2023.
(04:53) One thing that has happened since COVID is the acceleration of digital transformation in businesses. This was led by B2C as consumers began shopping and transacting from home, and now, this is bleeding into B2B. In our space, serving B2B customers, we see C-suites pushing for technology to be available in the B2B space. We’re seeing trends toward automating AP and AR processes in businesses, and these trends are starting to kick off this year and will continue. This is a good point to pass over to Ricardo, who works closely on the tech side, to talk about what we're seeing in cash flow management trends for 2023, particularly in Australia, which is a bit ahead of other regions, especially the US.
(06:00) Thanks, Nick. As you mentioned earlier, there’s no going back—the future is going to be more digitized, and having the right technologies and processes will be important for all businesses. Australia is ahead in terms of tech adoption, especially compared to the US, where cheques are still very prevalent. At ezyCollect, we have a lot of data on the impact of technology and products on businesses, particularly in B2B. If we move to the next slide, we see that if you’ve been a client or are familiar with ezyCollect, we help automate accounts receivable processes and provide easy payment solutions for your customers. We also integrate and simplify your life by automating payment records and reducing reconciliation tasks. However, even with these improvements, late payments still occur.
(07:07) A lot can happen between the time an order is placed and payment is made. For example, once an order is delivered, the customer, who is also a business, may prioritise selling the stock overpaying you, especially if the payment process isn’t easy. At ezyCollect, we aim to build technology that benefits both ends, making it easier for customers to pay and ensuring you get paid faster. If we take a look at an order-to-cash process, we often see that payments are made after the expected payment date, which is very common. What we are doing is focusing on getting a greater commitment from the customer to pay on time.
(09:35) This involves not just technology, but also adapting processes and fostering collaboration between departments. Now, if we look at the order-to-cash process conceptually, the goal is to ensure a strong commitment from the customer to pay. This can involve setting up automatic payment processes that reduce the risk of late payments.
(11:14) For us, it’s about getting that strong commitment from the customer and automating processes to reduce the effort needed from your staff. This includes automating tasks like sending invoices and statements and updating records in your ERP, all while integrating these processes to speed up order fulfilment.
(12:26) That’s really interesting, Ricardo. How is this reflected in ezyCollect?
(12:29) Well, we'll get into that. Just be patient—we’ll come back to that later.
(13:01) Alright, well, the second trend we’re focusing on is the evolution of payment technology in the B2B space. Jane, you work closely with clients—what types of technology are coming through or being requested by our clients, and what do we have in place that can really help collect payments now?
(13:35) As we've been discussing, we’re all used to the B2C experience, where shopping online is seamless. Our clients want that same experience in the B2B space, though with the added complexity of selling on credit and maintaining relationships with their customers. We’re seeing a version of "buy now, pay later" in the B2B space, which is increasingly requested by our customers. We already have this on our platform. Clients want one-click purchases, where their customers can easily pay by credit card, bank transfer, or any other method, without having to think about it.
(14:41) Recently, we’ve also been talking to clients with e-commerce experiences in the B2B space. They want to streamline and automate the process from e-commerce through to their ERP, ensuring a smooth payment experience for their customers. This is what we're calling "payment experience." When our CSMs talk to clients, we discuss strategies to help them save costs, save time, and boost customer experience and satisfaction through automation and faster payment processing.
(16:53) We’ve seen these innovations in B2C companies like Amazon, Netflix, and Uber, which are at the cutting edge of these technologies. Amazon, for instance, reduced cart abandonment by implementing their patented one-click payment process, and their sales soared. Netflix uses sophisticated payment scheduling technology to manage subscriptions seamlessly, which has driven customer adoption. Uber has revolutionised the taxi industry with frictionless payments, integrating the entire process with technology.
(20:11) These examples show how Big Tech companies have leveraged payment technology. Now, applying this to our clients, particularly in the SME space, we often encounter concerns about automated payments being targets for fraud or security issues. What's your take on this, Nick, from your perspective in risk and finance?
(20:39) Fraud is on the increase, but it's growing at a slower percentage than card usage, which is a small win. In 2021, card usage grew by 8% in Australia, while fraud grew by 5.7%. Still, the cost and management of fraud are rising. There is technology out there, and your payment provider, whether it's ezyCollect or others, should use this technology to protect you and ensure you're not part of that growing fraud percentage.
(21:12) One key technology is tokenization, which securely stores payment information without ever exposing card numbers, reducing the risk of fraud to zero. 3DS technology is also crucial, particularly in Europe and Southeast Asia, where it's mandatory. It adds an extra layer of security by verifying transactions with a one-time pin, shifting the liability for fraud to the bank.
(24:02) Another important aspect is transaction monitoring and smart AI. At ezyCollect, we constantly monitor and track all transactions for fraud. We get early fraud warnings and detections, and we stop transactions that hit certain parameters we deem unsafe. This kind of smart technology helps protect businesses and ensures that chargebacks are minimal. We’ve seen very few chargebacks within our B2B space, partly because we operate in a world where services are delivered, and payments are typically made after the fact.
(25:34) And all this technology is something we already offer to our clients using the platform, providing peace of mind. We're not just talking about plugging in payments; we're also talking about all these additional security measures.
(26:03) Absolutely. To operate in this space and have peace of mind when collecting payments, you really need to have these technologies in place. If your payment provider doesn't have them, you should request them or consider moving to one that does.
(26:37) And on that note, Ricardo, I know you’re itching to talk about our product. How does this all tie into ezyCollect? Do you have anything new to show us or talk about? Earlier, you gave us a bit of a teaser.
(27:16) I'd be happy to share. Just before jumping in, I want to emphasize our mission to eliminate late payments. It’s something we’re always striving for, and it sets the context for everything we’re going to discuss here.
(27:51) In terms of the roadmap, I’m going to focus on a specific part related to the commitment to pay, which I mentioned earlier. This is really important to keep in mind. Even though we’re primarily talking about zero days late for our direct clients, we understand that this cannot be achieved without creating a win-win for both sides—for our direct clients and their customers. It’s B2B, after all, and there’s a relationship there. You want to expand that relationship and grow together because it benefits everyone.
(28:34) If we can create value across the chain, there’s a greater likelihood that your customer will be willing to work with you regarding the processes and technology you want to use. Before going into detail, let me give you a brief overview of what we've done so far.
(29:09) All of this is what we showed last time as part of our roadmap, and we’ve accomplished all of it. You can now embed our payment solution within your platform, even within your e-commerce store. We’ve leveraged the power of payment authorities to allow you to collect invoices whenever you want—whether that’s sales orders or by leaving it on an automatic schedule where invoices are collected automatically on their due dates. We’ve also started exploring more complex processes, like businesses that take a 50% deposit when the order is placed and another 50% before the order is fulfilled. This is also integrated with your accounting system.
(30:28) I have to say, Ricardo, in the autocorrect side of things, where it’s scheduled to be collected, I know you’re working with one client who had it scheduled to collect over a thousand invoices in one day. She just sat there watching 1,500 events being collected automatically. Unbelievable! And then, as they were being collected, they were automatically allocated to those invoices in the ERP, keeping everything up to date. That must have been an amazing feeling.
(31:09) It really was! One of our CSMs was on the phone with her, looking through it all. That kind of automation is a game changer. We want everyone to experience the feeling of tasks that used to be difficult happening automatically. It’s a great feeling.
(31:52) So, what else do we have? I want to focus today on the payment commitment we discussed earlier. Getting a payment authority is key, and there are a lot of fears around direct debit authorities, which are quite reasonable.
(32:28) Can you elaborate a bit more on those fears? I mean, I’m so used to direct debit for my bills at home, but this might be a different story.
(33:02) If you have a direct debit authority and allow a business to use it to charge your bills, that's very common. It's easy to manage or cancel, but it’s not your business account. Some businesses are uncomfortable giving that authority because they don't want their supplier to access their account at any time and take any amount. That’s one limiting factor. The second is the question, "What’s in it for them?" Sometimes, the benefit of not having to worry about it, maintaining good relationships, and keeping their terms is enough, but we're also exploring ways to create options that make sense for your business.
(34:43) This form you see here leverages that technology but puts more structure to it. It’s specific to this order. We’re not asking for a blanket authority to charge for whatever, whenever. We just want a payment method to collect the value for this order on a future date, based on the terms. It’s essentially a single transaction authorisation, respecting all the terms of your customer account.
(35:18) I like that it’s very specific and customised to the customer.
(35:51) Exactly. And we need to recognise the current state of B2B. Not everyone will have an e-commerce store where this can be embedded, so this can be incorporated into your processes. Whether an order is placed via email, phone call, or e-commerce store, when they say they want to pay on account, it can be integrated there. You don't need to take any payment on that day—just get a commitment that they’ll pay, then fulfill the order. It’s a very simple smart contract.
(37:38) Another thing we’re working on is incorporating additional incentives. If you can get such a strong commitment from your customers that they’re willing to give you that automation, it saves you so much time and effort—not just from collecting payments automatically, but from all the automation we can integrate throughout the process. Maybe it’s worth offering them a small discount. It doesn’t have to be 5%, but something that changes the mindset of what it’s worth eliminating these manual tasks.
(38:51) What’s the cost of all the chasing, calling, and frustration of not being able to reach someone, or someone saying they’ll pay next week? If you could eliminate all of that, would it be worth giving them a small discount? It’s flexible and depends on the business, but you’ll be able to include that in the commitment configuration, respecting the terms of each account.
(40:22) When you think about it, some of our clients complain, "We give this account 30-day credit terms, but they pay in 90 days." Is that 90 days worth a 5% discount or more? Probably more, right?
(40:58) Absolutely, and what you can do with that money if you had it 60 days earlier—on the 30th day or even on time—is enormous. There’s real scope for this as an incentive for customers. Different industries will have different needs, but a lot of our technology works across different industries.
(42:31) Another question came up yesterday—if you capture a credit card as a direct debit authority and the card changes (as we all get issued new cards), what happens? There’s smart tech behind the scenes that automatically updates the credit card details, so you’re not having to go back to the customer to reinitiate the debit. It all happens seamlessly between us, the banks, and the merchant.
(43:56) Just to clarify, this solution isn’t only for credit cards. You can get payment authorisations in various types of payment methods, depending on what you want to offer. This includes bank transfers, and with the rollout of NPP, we’ll be integrating those technologies as well.
(45:11) I think most people are aware of PayID or Osko, which uses the NPP infrastructure. This has been rolling out in Australia for a while now, but more specifically, what I’m talking about is a capability called PayTo. This is very important because it’s a bank transfer, but the difference is the speed—it’s almost instant settlement. You get paid, and the money is in your account pretty much the same day through a bank transfer, which also means fewer fees within the transaction. It’s a win-win for everyone. We’re really looking forward to offering PayTo to our clients.
(47:05) The big four banks are the cornerstones of this tech. To pay someone from CBA through to Westpac, both banks need to be able to complete that transaction instantaneously. Right now, CBA is the only one of the big four that’s set up and ready to go. The ANZ and NAB are expected to be ready by April, and Westpac is expected to follow. We need to get at least three of the big four on board, covering 50-70% of users, to really see this technology open up and be used more widely.
(48:04) We’re all pretty excited about these payment technologies coming out. At ezyCollect, we always aim to be ahead and ensure our clients can benefit from these new technologies. On the screen, you can see our contact details, so if you have any further questions, feel free to email us individually. If you're still here, thank you so much for sticking with us. We have a question in the Q&A, so let's go through that.
(48:36) Is there a function available yet to show customer order numbers in automatic invoice emails and payment reminders?
(49:11) We can definitely include the customer order number on the invoice template, either by pulling it from your accounting system or generating it with our invoice designer. We can also look at including it in the reminder email itself, if that would be helpful.
(50:24) If there are no more questions, I think that’s it. We’ll definitely be sending out a copy of this webinar recording. Feel free to email us with any further questions, and hopefully, you enjoyed this fireside chat. Nick, Ricardo, it’s been wonderful having this chat with you both. Any final messages for our clients and audience today?
(50:24) Stay safe and transact safely. Thanks for joining us!
(50:24) Absolutely. We’ve enjoyed it, and I hope you’ve learned something. Feel free to reach out—we’re here, and we’re real people. We’ll respond to your emails, so don’t hesitate to get in touch. And send us your ideas anytime. Let’s all get paid faster!
(50:24) Thank you all so much. Have a good afternoon and enjoy your day. Bye!
(50:24) Thanks, everyone.