It’s encouraging to see construction project management software leading the industry towards workflow automation and better project management. Construction software is also becoming a necessity rather than a luxury. Those who embrace technology can see business benefits such as cost efficiency, better on-site performance, an improved client experience, and smoother back-office operations.
However, one pain point that continues to persist in construction is the payment experience. According to a 2019 payment report by Levelset, about half of US contractors do not get paid on time. Furthermore, PwC research shows that US construction workers have to wait an average of 54 days to get paid.
ISVs have the opportunity to sell vendors, suppliers, contractors, sub-contractors, remodelers, and more on improving the payment process through integrated payments within their construction management and billing software.
The Burdens of Construction Billing
The absence of technology isn’t entirely to blame for lengthy payment timelines in construction. Lack of visibility down the chain, local building regulations, and complex contracts also play a role.
Even though the scope of work is complete, convoluted approval processes increase the chances of delayed projects, stop-work orders, and miscommunication, which only leads to frustration for all parties involved.
Still, building construction software is a technological tool that can help manage the process. Developers can improve the billing process through invoicing, providing various payment methods, and Subscribe Now
How Building Construction Software Can Improve Payments
It is best practice for workers to submit their construction invoices right away once their project is complete, especially for those who are further away from general contractors and other top-of-chain parties. Creating invoices through software can partially automate the tedious process of entering job details, labeling work products, and attaching requested documentation.
The ability to email invoices allows for payees to instantly request payment, versus having to print documents, spend on postage, and wait days for the postal service to deliver. Additionally, it creates a communication trail that can easily be tracked, reducing the chances of one party saying, “I never received the invoice in the mail.”
ISVs can upgrade their invoices by integrating digital payment functionality such as ACH and credit cards, in addition to modern features like text to pay and digital wallet acceptance. The ability to offer “card not present” options allow both parties to request and send payment no matter where they are located.
For businesses that transact with parties who don’t have access to digital payments, integrated payments gives them the flexibility to accept “card present” transactions, ensuring all customers can pay in their preferred way.
Why Payees Should Accept Digital Payments
For payees, accepting credit cards and digital wallets mean getting paid faster and improving cash flow. Credit card processing only takes an average of one to three business days. While still an electronic payment method, ACH billing takes an average of three to five business days to process.
Paper or electronic checks take an average of two days to process. But waiting for them to arrive in the mail, in addition to making sure they don’t bounce, adds to the timeline of getting paid.
Additionally, accepting credit cards can build trust with specific payers, such as those who want the protection that credit cards offer and an easy trail for them to trace. Lastly, offering a variety of payment methods is a great way to accommodate clients, allowing them the opportunity to pay with their preferred payment methods.
Why Payers Benefit With Digital Payments
For those who need to pay for construction work, making a payment electronically is comfortable and familiar. Using a credit card provides payment flexibility and the chance to get work done now. There’s no need to have the cash on hand to cover the job costs for each progress billing. They also have the opportunity to take advantage of the rewards associated with their business or personal credit card.
How Integrated Payments Provide Value to Construction Software
Developers don’t have to restrict their software to a desktop-only payment experience. Integrated payments can make mobile functionality and embedded commerce a reality.
Workers and managers already rely on mobile phones to get relevant information for the job at hand, in addition to real-time updates that allow for efficient communication up to and down the chain without the need to be in the same place geographically. Why not extend this to payment transactions?
When integrating mobile payment functionality, additional hardware to accept credit cards is not required. Instead, invoices sent via email or text will include a unique statement profile link. From there, the recipient will be able to view the invoice and pay by entering their credit card details: no user login or password required.
Additionally, accepting digital payments within your software will result in increased operational efficiency. Offering this much-desired and streamlined experience for payments can allow developers to promote a complete construction software solution.
Promote Safety and Security with Integrated Payments
Another incentive for offering integrated payments is fraud prevention. While checks continue to be a standard payment method for businesses, they are unfortunately susceptible to fraud. Paper checks display critical account information, increasing their chances of getting forged or stolen.
To combat fraud, ISVs should include a comprehensive security solution that includes features such as encryption and tokenization, which help to protect sensitive data such as the cardholder’s name and primary account number.
When processing and storing credit card data, it’s also essential to ensure your payment solution is PCI compliant. If you’re unsure whether you are meeting PCI standards, partnering with a payment processor like Global Payments Integrated can help you reach and maintain this goal.
Our advanced security services bundle actively works to protect credit card data and prevent fraud. We also offer a program to help ISV customers stay PCI compliant in simplified ways through online self-assessment questionnaires, network scans, and more.
Lastly, offering digital payments through integrated solutions allows your customers to provide touchless payment options to their clients, allowing them to safely conduct business while strict health and safety precautions are in place.
Integrated Payments Complete Construction Software
ISVs that make integrated payments a priority set themselves up to be an all-in-one technology solution provider. Payment integrations are a great way to create a “sticky” product experience, as customers no longer need to work with additional third-party vendors to develop their ideal payment experience.
Enhance Your Construction Billing Experience
Digitization and automation are slowly changing the construction industry. Building construction software developers should strive to include payment functionality as a feature to maintain an edge over competitors. Doing so enhances the way clients want to pay while improving the way construction workers get paid.
ISVs can partner with a payments processor such as Global Payments Integrated to begin offering payments with a relatively short time to market. Our flexible partnership model allows you to focus on software development while our solution provides advanced payment capabilities and regulatory support.
Contact us to learn more about our revenue sharing partnership opportunities specifically designed for the construction software space!
