Cracking Bulk Checkout

The Challenge

Small businesses often grapple with a cumbersome process for paying multiple invoices. Larger businesses rely on sophisticated Accounts Payable (AP) systems, while smaller businesses resort to manual methods, creating friction and inefficiencies for both the paying business and the vendor. In fact, 50% of payments received by businesses are still made via physical checks, highlighting the need for a more streamlined and efficient solution.

The existing payment portal, designed for single invoice payments, lacked the capability to handle bulk payments, further complicating the process for small businesses. The challenge was to design a solution that would streamline payments, empowering small businesses to pay multiple invoices with ease and efficiency.

Project goals

1. Increase conversion rate and annual revenue by $5 million to $10 million
2. Reduce off-rails payments, which currently account for more than 60% of payable invoices sent to businesses
3. The bulk payment feature will reduce manual work for payees, improving their efficiency and cash flow management
4. Validate the functionality of the bulk payment feature and gather user feedback through a limited scope release

Potential Impact

The opportunity for the bulk payment feature is substantial. With 7.3 million pay-enabled invoices (invoices that can be paid online) sent to businesses in June 2024 alone, there’s a significant need for a streamlined solution. By streamlining the payment process and reducing off-rails payments (payments done by cash, bank transfer or check), which currently account for 61% of pay-enabled invoices sent to businesses, the bulk payment feature is projected to increase annual revenue by $5 million to $10 million and positively impact conversion rates, revenue, and user satisfaction.

The Payee Perspective

Beyond the benefits for payors, the bulk payment feature also addresses significant pain points for payees (C1s) when customers pay multiple invoices off-rails. These off-rails payments, typically made through bank transfers or checks, create friction and inefficiencies for payees, including:

• Manual Reconciliation: Matching off-rails payments to the correct invoices can be time-consuming and error-prone, requiring manual effort and increasing the risk of mistakes.
• Payment Tracking: Tracking payments made off-rails can be challenging, leading to confusion and potential delays in processing payments.
• Fraud Risk: Off-rails payments are more susceptible to fraud, as there is no third-party verification process to ensure the payment’s legitimacy.
• Delayed Payment Processing: Processing off-rails payments can take longer, as payees need to wait for the payment to clear before applying it to the invoices, impacting cash flow and financial planning.
• Reduced Cash Flow Visibility: Off-rails payments can make it difficult to predict cash flow accurately, as payees lack real-time visibility into when payments will be received and reconciled.
• Increased Customer Support Inquiries: Customers may contact the payee with questions about their off-rails payments, increasing customer support workload and potentially impacting customer satisfaction.

The Solution: Designing a User-Centric Bulk Payment Feature

To address the challenges faced by small businesses in managing multiple invoices, I led the design of a bulk payment feature that streamlines the payment process and improves efficiency.

The solution seamlessly integrates into the existing payment portal, minimizing disruption to the user’s workflow while introducing powerful new capabilities. By enabling bulk payments, this feature empowers small businesses to optimize their payment processes and reduce manual effort.

Key features of the bulk payment solution include:

• Invoice Selection: Users can easily select multiple invoices for payment, with clear visual cues and intuitive controls.
• Dynamic Total: The total amount due is dynamically updated as users select invoices, providing real-time feedback and clarity.
• Streamlined Checkout: The checkout process is streamlined, with minimal steps and clear instructions, ensuring a smooth and efficient payment experience.

The Process: Data-Driven Design and Key Decisions

The bulk payment feature was a collaborative effort, spearheaded by the product manager and me as the lead product designer. We utilized data-driven insights and user feedback to inform design decisions.

Our process started with analyzing existing data to understand the challenges faced by small businesses in managing multiple invoices. This data-driven approach guided our design iterations, ensuring the solution was user-centric and addressed core pain points.

Key decisions made during the design process include:

• Modal Approach: To ensure a quick release, we opted for a modal approach, minimizing development time while still delivering a powerful solution.
• Prioritized Features: We focused on essential functionalities such as invoice selection, dynamic total display, and a streamlined checkout process to ensure an intuitive and user-friendly experience.
• Removing the Login Barrier: To further streamline the experience, we worked with Risk, Legal, and Compliance to allow payors to access and pay unpaid invoices without logging in, removing a significant friction point.

Limited Scope: Strategically Phasing the Rollout

A key challenge in designing the bulk payment feature was accommodating the varying payment methods across invoices. Businesses using QuickBooks can enable or disable specific payment methods for each invoice, leading to potential inconsistencies in the payment process. Imagine a small business owner trying to pay multiple invoices, only to find that some can be paid with a credit card while others require a bank transfer. This inconsistency can lead to confusion and frustration, hindering the user experience.

To address this, I made a strategic decision to limit the scope of the first release. The bulk payment feature would initially be available only to users who receive invoices with both credit card and bank transfer options enabled. This focused approach allowed us to validate the core functionality, gather user feedback, and release the feature quickly, demonstrating value and paving the way for future enhancements to address more complex payment scenarios.

Conclusion: Empowering Small Businesses Through Streamlined Payments

The bulk payment feature simplifies the payment process for small businesses. By enabling bulk payments, we’ve addressed a critical pain point and unlocked new opportunities for efficiency and growth. The data-driven design process and collaborative approach ensured a user-centric solution. The limited scope release allowed us to validate functionality and gather user feedback. The bulk payment feature is projected to positively impact conversion rates, revenue, and user satisfaction.