Not paying a partner can have detrimental effects—a delay in payments directly puts the customer experience at risk. Late payments can also cause partner attrition and ruin the reputation of your marketplace or network.
For partner payments, complexity and scale are the primary obstacles. Every payment must be assessed and might involve additional communications with the partner. A single typo can cause havoc deep into the payment cycle—even after funds have left the bank account.
Typically, since partner payments are considered back- office, improvements to resources or systems are limited. But a lack of systems introduces errors that contribute to more inefficiency and higher operational costs. Hours are spent manually keying in data, verifying and correcting partner information, validating tax forms, logging into bank portals for payment, and reconciling payments. And the risks are far worse—partner attrition, payment errors, failing tax and regulatory compliance, and payment fraud.