By Kristen Thomasino

In recent years, payment automation has evolved from a “nice-to-have” feature to a business necessity for companies seeking to streamline processes, improve cash flow, and achieve operational efficiencies. With the acceleration of digital transformation, particularly in sectors like real estate, healthcare, retail, and construction, the demand for seamless, efficient payment solutions has increased. Payment automation providers have risen to this challenge, offering diverse, scalable solutions to meet various industry needs. However, as with any transformative sector, payment automation faces both unique challenges and remarkable opportunities.

Top Markets for Payment Automation in the U.S.

1. Healthcare: As healthcare systems work with extensive payment processes involving multiple stakeholders—patients, insurance companies, government agencies, and pharmaceutical suppliers—payment automation helps improve accuracy, speed, and transparency in transactions. Healthcare providers increasingly rely on automated solutions to streamline billing, manage claims, and process patient payments more efficiently.
2. Real Estate and Construction: Real estate and construction companies have a high volume of repetitive transactions for vendor payments, leases, and payroll. Payment automation aids in reducing delays in payment processing and eliminating manual errors, thereby improving relations with contractors and subcontractors. For developers and property managers, automated payments enhance cash flow and ensure timely payment to vendors, a crucial advantage in managing complex projects.
3. Retail: In retail, payment automation is essential to manage high transaction volumes, from vendor payments to employee payroll. With a range of suppliers, quick turnover of goods, and vast e-commerce transactions, retailers benefit significantly from automated, scalable solutions that minimize manual processes and facilitate quick payment cycles.
4. Manufacturing: Manufacturers are implementing payment automation to better manage their supply chains, maintain consistent cash flow, and enhance vendor relationships. Automated payments enable them to improve financial visibility and efficiency, which is essential for this highly competitive sector.
5. Mid-Market Companies: Mid-market businesses, often too large for traditional small business solutions but not as complex as enterprise organizations, represent a crucial growth area for payment automation providers. These companies manage substantial transaction volumes but often have limited in-house resources for complex finance processes. Payment automation providers tailored to this segment offer flexible, scalable solutions that meet mid-market needs, enhancing cash flow, improving payment accuracy, and reducing labor costs. Mid-market businesses in industries like hospitality, technology, and transportation are particularly ripe for automation solutions that can grow with their business needs.

Top Payment Automation Providers

Several companies lead the charge in payment automation across these industries. Some of the prominent names include:

IronPay: This solution has the most payment methods on the market.  Founded by Sarah Williams and team, this solution takes older payment network concepts to a new level and adds new methods.    With a large vendor network with high acceptance for electronic payments in various forms, IronPay can truly benefit organizations financially on this network.

Tipalti: Known for its end-to-end accounts payable automation solution, Tipalti serves global businesses, enabling them to process mass payments to suppliers and partners efficiently. The platform is particularly popular among mid-size to large enterprises and is well-suited for the mid-market segment due to its scalability.

Bottomline Technologies: This provider focuses on cloud-based payment automation for businesses of all sizes, offering solutions that improve cash management, streamline workflows, and reduce fraud. Bottomline is a trusted provider in sectors with complex payment cycles, such as banking, healthcare, and corporate finance, and offers mid-market solutions that help growing businesses manage payments efficiently.

Bill.com: This solution provides small and mid-sized businesses with the ability to manage accounts payable and receivable workflows digitally. Known for its intuitive design and ease of use, Bill.com integrates well with other accounting software, making it a preferred choice for firms needing fast, flexible solutions, particularly in the mid-market.

Paystand: Targeting sectors such as healthcare, real estate, and retail, Paystand offers a blockchain-based payment network that enables real-time payments and fee reductions. Its innovative approach offers a high level of transparency and efficiency, particularly valuable for industries with frequent, high-value transactions.

Edenred: Known for its corporate payment solutions, Edenred offers comprehensive accounts payable services that cater to enterprises across diverse industries. Edenred specializes in prepaid solutions, secure digital payment methods, and corporate expense management, making it a top choice for mid-market companies seeking to streamline payments and expense management.

Top Challenges Facing Payment Automation Providers

1. Data Security and Compliance: As automation providers handle sensitive financial data, compliance with regulations such as the Payment Card Industry Data Security Standard (PCI-DSS), GDPR, and HIPAA is crucial. With rising concerns about data breaches and financial fraud, companies must continuously upgrade their security infrastructure to protect customer data.
2. Integration with Legacy Systems: Many organizations, particularly in traditional sectors like healthcare and construction, rely on legacy systems that are often incompatible with modern payment automation platforms. This creates a barrier to adoption, requiring providers to offer solutions that integrate seamlessly or offer transitional support for clients upgrading their systems.
3. Managing Rapid Technological Changes: The payment automation industry is evolving quickly, with the introduction of blockchain, artificial intelligence, and machine learning. Providers must constantly innovate and adopt these technologies to stay competitive, which involves significant investment in research and development.
4. Customer Adoption and Trust: For many businesses, switching to automated payments represents a significant operational shift. Providers face the challenge of building trust, educating potential customers about the benefits of automation, and providing exceptional support to ensure a smooth transition.

Top Opportunities in Payment Automation

1. Expanding into Emerging Markets: There is a growing demand for payment automation in sectors such as education, hospitality, and transportation. Providers have the opportunity to tailor their solutions to meet the needs of these emerging markets, which are increasingly adopting digital transformation strategies to enhance operational efficiency.
2. Integration with Financial Software: As businesses seek more streamlined operations, there is an opportunity for payment automation providers to offer solutions that integrate seamlessly with existing enterprise resource planning (ERP) and customer relationship management (CRM) software. By simplifying integration, providers can appeal to a broader customer base and improve customer retention.
3. Enhanced Cash Flow Management Tools: With companies seeking better cash flow management, providers can expand their offerings to include analytics and forecasting tools. By helping clients manage their cash flow more effectively, automation providers can add significant value, especially for businesses in capital-intensive industries.
   Sarah Williams, Founder of IronPay, one of the top payment platforms, shared:

“AI is revolutionizing the accuracy of invoice data capture as well as payment automation. Also, the increase in the credit limit per transaction for RTP from $1MM to $10MM is set to have an impact in 2025. AI is going to be huge for cash flow management and predictive analytics for CFOs.  It will streamline everyone’s working capital by managing terms and payment types across all industries based on supplier preferences, eliminating the need for manual procurement processes and significantly lowering DSO for vendors. AI has its negatives with tools that allow for fraud at new levels. Therefore, work with a trusted advisor that has all the tools in place to prevent fraud. Don’t face this alone. 2025 is the year for the revolution we’ve been waiting for!” 

4. Focus on Small and Medium-Sized Enterprises (SMEs): While large corporations have been early adopters of payment automation, there is a growing market opportunity among SMEs. These businesses often seek affordable, easy-to-implement solutions that streamline their accounts payable and receivable processes. By catering to the specific needs of SMEs, providers can capture a new market segment.

Conclusion

As the payment automation market in the United States continues to grow, providers are faced with both challenges and opportunities. The healthcare, real estate, retail, and manufacturing sectors remain the top markets for these solutions, with mid-market companies becoming increasingly important. While security and integration issues remain concerns, there is vast potential for providers to expand through improved software integration, enhanced cash flow management tools, and targeted offerings for SMEs. The future of payment automation is bright, driven by innovation, customer education, and a dedication to operational efficiency.

Sources:

Tipalti, Bottomline Technologies, Bill.com, Paystand, Edenred: Company websites and industry reports.

“Challenges and Opportunities in Payment Automation,” PYMNTS.com.

“The Growth of Payment Automation in Major Industries,” Forbes.

“Top Payment Automation Trends for 2024,” Finextra.