Top 6 Benefits of API Payment Processing That You Cannot Overlook

Written by Keegan Chamberlin
March 1, 2022

Automating payment processes has been a costly task for the longest time. Many third-party payment providers act as a middleman, charging large transaction fees for any payments coming in and out of their system. You shouldn’t have to pay larger fees for automation tools that help you obtain more visibility versus manually managing your payments via multiple bank portals.

Through utilizing an automated cash management platform with payment capabilities built upon rich open banking API connections, your organization can experience the benefits of automated payments and cash management without additional, third-party fees. 

In this article, we’ll dive into six of the most compelling API payment processing benefits, so you can better orchestrate payments and eliminate third-party fees once and for all.

1. Send Payments in One Platform with No Intermediary Fees

While your organization could utilize billing automation and streamlining platforms, they often charge additional fees on top of standard banking fees. This occurs because these providers momentarily hold your funds for particular payments and manually send those payments to the right payees.

By selecting a third-party billing automation platform, you are locking your organization into another SaaS subscription with abundant transaction fees just to handle your payment processes. Trovata works differently.

With open banking APIs, Trovata establishes two-way communication payment rails between your instance of Trovata and your banking institutions, enabling the sending and receiving of payment and beneficiary information.

This way, your organization can initiate and manage payments sent via ACH, wire, and real-time payments (RTP), but the actual payments are processed by your bank institution.

This method allows you to send payments nearly instantaneously without additional third-party fees. The only fees you incur are standard fees from your banking institution. And with Trovatata’s Payment App being entirely free for existing Trovata subscribers, you can avoid purchasing another SaaS subscription just to automate payments. 

Recommended: “The Revolution in Payments That’s Got Third-Party Vendors Scared” ?

2. Track Payments Easily with ML and AI

Any payment initiated via Trovata is always reflected within the cash flow reporting and forecasting tools and the Payments App, amplifying your ability to make more informed, data-backed decisions based on historical bank data.

Open banking APIs don’t just send and receive payment information but also establish a big financial data pipeline between all of your global bank accounts and your instance of Trovata’s platform. These banking APIs automatically call and receive cash and transaction data daily within a Multi-Bank Data Lake™, which machine learning and AI technology analyze to find and present rich insights into your organization’s cash flow. 

One of these critical features that machine learning empowers is Natural Language Search, which enables you to perform unstructured search queries, similar to a Google Search. You type in your desired keyword, whether related to a particular vendor, institution, or date range, and Trovata presents you with a relevant list of transactions nearly instantaneously.

You can forget having to page through an unstructured list of transactions and payments, amplifying your ability to perform GL reconciliation quicker and easier than before.

3. Automate Forecasts Showing the Potential Effects of Payments

Cash forecasting used to be a mess of spreadsheets and scattered data, but automated cash management platforms make it easy to see how certain payments, cash inflows, and outflows can affect future cash flow.

With Trovata’s comprehensive suite of automated forecasting capabilities, your organization is able to generate forecasts based on historical bank data. These forecasts can be customized with enhanced, user-defined growth rates and variables, strengthening your ability to perform scenario planning around different business decisions and potential investments.

Trovata not only generates automated forecasts, but also establishes a forecasting baseline, allowing you to perform variance analysis in order to determine your forecasts’ accuracy. With machine learning automatically analyzing your historical bank data, and automating variance analysis, you can equip your team with the toolset necessary to increase the accuracy of your organization’s forecasts quarter-after-quarter.

4. Increase Visibility and Transparency with Payment Workflows

payment processing workflows
Source: Trovata Payment Processing Workflows

Your organization can gain more control over your payment processing procedures by building them directly within your Trovata Payments App. With workflows, your administrator can designate custom rules and assign users to specific roles to ensure that every payment processed through your instance of the Trovata Platform adheres to your company’s signature authority matrix, treasury policy, and internal controls.

Once your admin finalizes workflows, they can save them as templates and even assign them as the default workflow for specific bank accounts, further automating the payment process. And throughout every payment approval, Trovata tracks the history of each workflow stage, providing your team complete transparency throughout every step of the payment process.

5. Increase Data Accuracy

Open banking APIs and Trovata’s Multi-Bank Data Lake™ work together to increase data accuracy. By eliminating manual data management within spreadsheets, you can greatly reduce the potential for human error. Stop spending time manually setting up your data and get straight to analyzing it instead. Many of our clients, like Eventbrite, save up to 12 hours a week automating their data management with Trovata:

 “When I first joined Eventbrite, my day-to-day consisted of logging on to all of our different bank portals, running reports to see balances for each of our accounts, and then trying to standardize all of this data in excel to build summaries. Then I had to do this across all four of our main banks. I spent 2-3 hours a day just pulling and normalizing bank data before Trovata, and that wasn’t a good use of my time… With Trovata, we have saved 12 hours a week [reducing] manual work.”

– Niall Burke, Eventbrite’s Global Treasury Manager

With all key stakeholders accessing the same aggregated bank data, everyone can remain confident that they are making more informed, data-backed decisions. 

6. Make More Informed, Data-Driven Decisions

Having your bank and payments data automatically consolidated and normalized into a single platform in near real-time frees your team up to perform more strategic analysis. Generating cash reports and forecasts on specific vendors or institutions only takes a few clicks, and any data point within these reports can be drilled into, empowering you with a level of control spreadsheets couldn’t even imagine achieving.

And with customizable, personalized dashboards make it easier to discover new growth opportunities and share that data with key decision-makers through cash reports sent straight to their inbox. Drilling down into your cash flow and payments with dedicated and automated cash reports on key vendors, clients, and banking institutions amplifies your organization’s ability to make more informed decisions surrounding potential investments and other critical business decisions at speed and scale. 

Take Your Cash Management and Payments to the Next Level

Trovata’s Payment App is truly the start of a new experience for organizations looking to initiate payments, including next-gen Real-Time-Payments, without needing third-party intermediaries and additional fees. And with Trovata’s comprehensive suite of automated cash reporting and forecasting capabilities built upon open banking APIs, Trovata truly makes it easy to empower your organization with global visibility across all your global bank and payments data.

Ready to see it in action? Book a demo today.

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