Introducing new practices to an organization can feel daunting, but it’s also a necessary part of how businesses grow and change. A clumsily executed new program can be disastrous for any sized company. No matter how stellar an idea an executive cooks up, it can be seriously hindered by poor communication, lack of buy-in, and disjointed rollout. Implementing a virtual card program is one such winning idea, and it takes a village to make it a successful reality.
Nvoicepay’s recently released whitepaper, Best Practices for Implementing a Virtual Card Program, takes an in-depth look at internal strategies that will ensure a successful virtual card program for vendor payments.
The future is now
Over the past decade, the payments industry has experienced a revolution that has all come to a head in the last 18 months. Payments were already becoming fast, flexible, and digitized en masse when the COVID-19 pandemic hit, as evidenced by this Mercator report. The new realities of pandemic life (social distancing, work from home, etc.) led to an explosion in virtual card signups both among consumers and businesses.
Virtual card use for B2B payments has seen marked growth in popularity, no doubt due to the many benefits that come with incorporating virtual cards into the accounts payable process. Virtual card programs are the critical first step towards automating AP processes, improving profit margins, and reducing paper checks. But getting set up for success isn’t as simple as tossing off a one-sentence memo announcing an upheaval in the inner workings of a business. There’s an effective and methodical approach to operating a virtual card program, and organizations that follow best practices greatly improve their chances of reaching program goals and increasing rebates.
Four-step process
Nvoicepay identifies four steps to successful implementation of a virtual card program, which are unpacked in greater detail in the white paper. Although they may seem straightforward, these steps require commitment and know-how to execute:
- Designate an executive sponsor
- Identify a dedicated program owner
- Set program goals
- Promote and launch the program in-house
These measures will enable any business to move in the right direction. Setting up a senior leader to spearhead the transition to virtual card payments gives the project credibility from the top down. Entrusting a point person to oversee day-to-day operations keeps everything on track. Setting program goals gives participating departments a sense of where the company is heading and allows them to appreciate when they have been successful. Holding a cross-functional virtual card kickoff coheres the project across the organization and reinforces the company brand.
A continuing post-pandemic priority
Every day there are new examples of companies adopting virtual card programs to improve their accounts payable processes. Clearly, the payments industry is shifting towards digital innovation. Virtual cards bring enhanced security, efficiency, cash flow control, customer loyalty, and payment optimization, among other benefits. Some projections forecast that B2B usage of virtual cards will double over the next five years. The time is now to advance business operations by bringing antiquated AP systems into technological maturity.
To learn more about internal strategies for implementing virtual card programs, ensuring that every key player at a company plays the proper role, setting specific and achievable organizational goals, and guaranteeing the effective adoption of a new payments initiative, consider reading Nvoicepay’s whitepaper.
Access Nvoicepay’s whitepaper, Best Practices for Implementing a Virtual Card Program, by filling out the form below.