VersaPay: The New Standard in AR Automation

VersaPay: The New Standard in AR Automation

CIO VendorCraig O'Neill, CEO & Director When was the last time that you visited a bank to draw cash or write a check? Digitization has made a profound impact on our personal lives in that today, we pay electronically for nearly everything. Although digital payments have become the new norm for consumers, most B2B companies have failed to adapt to this trend in the B2B space. Writing paper checks is still the most common form of payment in B2B. Further, when business customers actually do pay electronically, it is likely that they are pushing the payment from their bank via ACH or EFT without the valuable remittance data needed for the billing company to realize the benefits. So, what’s the reason behind this? Craig O’Neill, CEO, and Director of VersaPay answers, “Everything boils down to convenience. In our personal lives, it is simple and convenient to pay for goods and services at the point-of-sale (POS) or through an e-commerce portal because, as consumers, we are typically making simple purchases and paying at the time of purchase. Conversely, B2B transactions are more complex which makes it very difficult to provide a simple and convenient method to accept e-payments.” That’s where VersaPay comes into the picture. By taking a different approach to e-payment portals, VersaPay can drive substantially higher adoption than other solutions and eliminate the tedious tasks and paper usage commonly experienced in B2B finance teams. The company transforms the way in which companies manage their invoice-to-cash processes.

The VersaPay solution integrates upstream activities like invoicing, dispute resolution, and collections, and continuously directs the end customers back to a convenient and easy-to-use payment interface. Further, the company facilitates various AR capabilities including credit memos, discounts, and short pays through its platform to manage the complexities of B2B transactions, allowing B2B organizations to toss their checkbooks for good. “VersaPay is creating an end-to-end vision of AR automation through its multi-tenant, cloud-based software, which runs on AWS where any number of companies can function using the same software,” says O’Neill.

The Idea behind VersaPay

Founded in 2006 as an electronic payments company, VersaPay introduced its accounts receivable (AR) platform for a pre-existing merchant services business, which was conceptualized on the premise that there was a better way to enable B2B organizations to accept credit cards as payment. O’Neill informs, “As we talked to customers, we realized that the issues B2B organizations faced extended well beyond credit card acceptance; it was the entire invoice-to-cash process—of which accepting credit cards for payment is a part—but the scope of the problem was much larger.” And thus after much deliberation, VersaPay decided to build a SaaS AR platform under the leadership and vision of O’Neill.

He mentions, “I was brought in to take what was initially a prototype through to a real product, with the view that we would ultimately get out of the merchant services business to focus on AR fintech. In 2017, we divested the original business, and have since been focusing entirely on ARC.”

Our approach has been to build a strong horizontal platform, with a deep focus on how we deploy and articulate our solutions within specific verticals


Today, VersaPay ARC, the company’s AR automation platform, has become the new standard in AR automation, helping companies get paid faster, save time and money, collect smarter, apply cash easily, gain insights into their customers’ behavior and make them happy. The platform is highly configurable and can adapt to the way the organization’s systems function, catering to the requirements of businesses across various industries. It facilitates electronic invoicing, permits easy electronic payments, and automates collections, providing a better overall online experience for the business customer. VersaPay ARC empowers the CFOs, managers, collectors, and sales reps with insightful data pertaining to their varied AR processes.

Empowering Organizations through Automation

The VersaPay ARC solution provides a single view of all invoices and supporting documents, regardless of division, time frame, or delivery channel. The users are provided access to accurate data, proactive reminders, and intuitive online tools that remove friction from the AR process, allowing customers to collaborate and pay when ready. Further, the tool integrates seamlessly with the customer’s accounting and ERP systems. For the commonly available ERP systems, packaged and ready-to-install connectors quickly integrate with the VersaPay ARC system on installation. For more customized ERPs, the customer can log in to the data sync page in the VersaPay ARC platform using the credentials provided and an automatic integration from the system is done in the background, thus creating a unified source of data for invoicing. The software is configured and implemented keeping in mind a checklist of activities such as reimbursement formats, organization branding, reconciling online payments, resolving issues concerning invoices, and many other factors related to AR.

In an instance, VersaPay automated an IT company’s end-to-end processes including their collection system, which was previously facilitated by their huge team of collectors manually. This paved the way for effective management of the AR process in the company with reduced resources. Within one year of the implementation, almost 85 percent of their customer base adopted the online transactions and electronic payments, and there was a real-time collaboration between their customers and the internal team. VersaPay ARC reduced the days' sales outstanding or DSO from 30 to 12 days.

A Holistic Platform

“What really differentiates VersaPay is that our clients (and their customers) are using a single platform to manage every step of the invoice-to-cash process.

Because the platform is both effective and easy to use, internal teams and end-customers love to use the platform, which translates into our industry-leading adoption,” says O’Neill. Recognizing that their clients have a spectrum of customers they serve, all who want to pay in different ways, VersaPay supports multiple channels of both invoice presentment and payment. “While our goal is to move our clients’ customers toward digital payment options—because they are much more cost-effective and efficient for our clients—we recognize that an element of their customer base will always want to receive invoices via mail and submit checks as payment, and we support both,” adds O’Neill. “Our approach has been to build a horizontal platform, with a deep focus on how we deploy and articulate our solutions within the specific verticals we serve. A feature like Document Request Management serves a different purpose in Commercial Real Estate versus Distribution; however, we leverage the same underlying technology to solve these different problems effectively.”

Another point of differentiation is that VersaPay is registered as a Payment Facilitator, while others in the space have to interface with Independent Sales Organizations when it comes to processing electronic payments. This allows VersaPay to on-board its customers in a quicker manner, and to have more control over transaction- related information. “As a PayFac, we are able to deliver funds to our customers by the next day, avoiding the typical funding delay of three to five days, which is a major point of differentiation for us. Between the quicker funding of transactions and the ability to provide faster on-boarding and resolution of issues that arise, we deliver a superior operational experience for our clients when it comes to payment processing,” states O’Neill.

"VersaPay is creating an end-to-end vision of AR automation through its multitenant, cloud-based software, which runs on AWS"

Having carved out a unique niche in the AR landscape, VersaPay is set to launch a full back- office cash application suite that allows for the matching of external payment sources (lockboxes) to invoices and apply the cash, along with any relevant discounts and deductions. This will give them a superior cash application coverage on payments made both inside and outside the ARC platform. They’ve also seen that, while automation and integrated receivables have eased the burden on cash application inside a given AR platform, it has made bank reconciliation more difficult. “To remedy this, we will also be launching an integrated solution for bank reconciliation against all internal and external payments in Q1,” says O’Neill. “This will enable our customers to do powerful three-way matching (of payments to invoices, through to the bank statement) for both online and off line payments, which will significantly reduce the amount of manual and repetitive work that their teams are tasked with today when it comes to bank reconciliation.”

VersaPay News

Unraveling the Hostility of Traditional Virtual Cards

Mastercard has started working with VersaPay, a principal provider of cloud-based invoice-to-cash solutions, to offer a solution that can remove the manual processes of reconciling incoming payment data.

FREMONT, CA: “Everything boils down to convenience. In our personal lives, it is simple and convenient to pay for goods and services at the point-of-sale (POS) or through an e-commerce portal because, as consumers, we are typically making simple purchases and paying at the time of purchase. Conversely, B2B transactions are more complex, which makes it very difficult to provide a simple and convenient method to accept e-payments,” stated Craig O’Neill, CEO of VersaPay.
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