LOS ANGELES, April 2, 2019 /PRNewswire/ -- FastPay today released a commissioned study conducted by Forrester Consulting entitled "It's time for media agencies to digitize the last mile of payments," describing the consequences of manual payment platforms, specifically for finance departments of media agencies.
This study surveyed 154 agency AP professionals and found that sixty-four percent of accounts payable respondents agree paying invoices by check is exceedingly time-consuming. Yet, media agencies still make nearly one-third of payments by check, resulting in late payments, lost or stolen checks, and additional labor costs.
Checks aren't the only concern. Other payment methods come with drawbacks when processes aren't automated. Finance departments that manually enter payment information into media suppliers' online portals experience manual errors, delayed payments, and slow, inefficient reconciliation.
"It's challenging enough working with manual, inefficient payment processes, but on top of that, agencies have to keep up with changing vendor payment terms, ownership, and check destinations, since the industry constantly evolves. As the media industry continues to be at the forefront of digital transformation, finance departments need to keep up," said Michael Wehner, General Manager and Senior Vice President of FastPay.
This study examines the intricacies of the payment process and how the industry is entrenched in cumbersome legacy payment processing methods and extended payment terms. Forrester suggests that the final stretch of ad purchasing should be digitized for better payment accuracy, process efficiency, and cost savings.
"The reason I started FastPay is to directly solve for these kinds of issues. Coming from a background in media and finance, I witnessed firsthand the challenges associated with slow payments. Our solution is designed specifically to address these key challenges by bridging the gap between agencies and suppliers through workflow efficiency and media specific technology," said Jed Simon, Founder and CEO of FastPay.
Bottom line: manual payment processes are holding media agencies back. Agencies that have digitized the last mile of payments are saving time and money, increasing revenue, and improving relationships with vendors. As more media agencies modernize their AP toolset, the entire media ecosystem will benefit from more efficient payment transactions and less friction between agencies and suppliers.
For more information, access the full study here.
FastPay is a financial technology platform that reduces friction and unlocks capital for buyers and sellers across the media landscape. Since its inception in 2009, FastPay has secured the movement of more than $6B in capital providing access to hundreds of millions of dollars in deployable capital from partners including Citibank, Wells Fargo, and Oak HC/FT. Its leadership team brings decades of credit and payments experience from Green Dot Corporation, Capital One, Morgan Stanley, Goldman Sachs, and Skrill. Headquartered in Los Angeles, FastPay has offices in San Francisco, New York, London, and Framingham, MA. For more information, please visit www.gofastpay.com.