When you hear the term ‘payments modernization,’ you are also most likely hearing the term ‘integrated payments.’ So what does integrated payments mean? Integrated payments refer to a concept in which payments processing is integrated into a business software package (such as an ERP or accounting package), as opposed to being an isolated product. The end result is a product where vital systems work together rather than a company having to stitch together several products from different vendors to fulfill an end-to-end business process.
It’s a win-win for the business and the solution providers. Simplifying the workflows and speeding up the payment process make the overall cost of ownership for the business lower and their lives simpler. Integrated payments systems can bring many advantages to businesses. Instead of having to manually enter and reconcile transaction data, an integrated ledger will show real-time transaction history. Cash flow is also accelerated as integrated credit card processing means payments are automatically posted. As a result, marketing and customer service are more informed—integrated payments provide more visibility for opportunities. With better reporting, getting the information required to do taxes is much simpler. Also, the end consumer experience is improved overall. They will have a more unified and cohesive payments experience, and will interact with customer service reps who are better able to serve them.
As an example, in 2021 Sphere announced that they were launching a new iteration of their Health iPASS platform, which integrates patient intake and engagement software with their payment acceptance functionality and security. The combined system has an array of services, allowing patients to check-in, make payments, edit their insurance, etc. By integrating all of the systems, hospitals can accelerate payments and provide better service. Today, the Health iPASS platform remains successful and has resulted in multiple partnerships with leading healthcare providers including Azalea Health, DJO, and many others.
Having integrated payments means open communication between all of your systems. The principle behind what makes integrated payments successful is a similar concept of the advantages of open APIs. Open APIs make payment modernization possible with legacy infrastructure, as new payments products can easily ‘talk’ to traditional core and online banking systems. For example, many financial institutions do not have the capability to have 24x7x365 availability, which is required by real-time payments. The advantages of real-time payments are vast to both the institution and their account holders. However, they can’t implement real-time payments without help. Alacriti, for example, can connect these financial institutions with The Clearing House RTP® network, making it possible for them to offer real-time payments even though their core processor does not have 24x7x365 availability.
Learn more about payments terms in our Microservices and API Architecture blog series.
Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
