These days, accounts payable (AP) teams have more automation options than ever. But the language used to describe those options isn’t always clear.
AP automation. Invoice automation. Payment automation. These terms are often used together, and some interchangeably, even though they don’t always describe the same thing.
The simplest distinction is this:
- AP automation is the broad use of technology to streamline accounts payable processes, from managing invoices and approvals through paying vendors. Note that this term can sometimes be used when referring to invoice automation only.
- AP payment automation (or just payment automation) focuses specifically on the payment stage of accounts payable including preparing, approving, executing, and tracking vendor payments.
In other words, payment automation is one part of AP automation.
While the distinction can sometimes be subtle, it’s useful to understand what type of automation you are looking for, and what a particular automation solution does or does not cover.
So, let’s get clear on the terms.
What is AP automation?
Accounts payable automation uses technology to reduce manual work across the accounts payable process. It can be embedded into an ERP, integrated, or even operate as a fully external solution. Depending on the organization and the solution, AP automation can include:
- Vendor management
- Invoice capture and processing
- Invoice approvals
- Payment preparation and approval
- Payment execution
- Reconciliation
Effective AP automation helps information and work move through accounts payable with less manual intervention while maintaining the controls finance teams need.
This is also why it’s important to understand that “AP automation” and “invoice automation” aren’t necessarily the same thing, despite often being used interchangeably. Invoice automation addresses an important part of AP, but accounts payable continues after an invoice has been approved.
Eventually, the vendor needs to be paid. That’s where payment automation comes in.
What is AP payment automation?
Payment automation uses technology to reduce the manual work involved in preparing, approving, executing, and tracking payments to vendors.
It focuses on the point in the AP process after invoice processing, when an approved payable becomes an actual payment ready to be made.
Without automation, the payment stage can involve several manual steps. AP teams may need to select invoices, manually prepare payment batches, chase down approvals, process payments individually, track their status, and complete follow-up or reconciliation with vendors.
AP payment automation solutions are designed to reduce the amount of hands-on work required across those activities while helping organizations maintain visibility and control over when and how money leaves the business.
That makes payment automation narrower in focus than the broad AP automation term, but no less important. It addresses one of the most sensitive parts of accounts payable: moving money from the organization to its vendors.
AP automation vs. payment automation at a glance
The easiest way to understand the difference is to look at where each fits within accounts payable.
| AP automation | Payment automation | |
| Scope | Broad accounts payable process. | Vendor payment process. |
| May begin with | Vendor or invoice activity. | Approved invoices or payables. |
| May include | Vendor onboarding and management, invoice processing, approvals, payments, and reconciliation. | Payment preparation, approvals, execution, tracking, and reconciliation. May also include vendor validation before payment processing. |
| Primary purpose | Reduce manual work across the full AP process. | Reduce manual work associated with paying vendors securely and efficiently. |
| Relationship | The broader AP process category. | A focused area within AP automation. |
The important distinction isn’t that one replaces the other. Payment automation exists as part of a broader AP automation strategy.
What does Payment Automation do?
AP Payment automation helps organizations streamline and enhance security and controls for work related to moving approved payables through payment and completion. In some cases, it may also refer to automation that supports vendor validation and compliance.
You can think of the accounts payable lifecycle as a series of connected stages:
Vendor management → Invoice processing → Approval → AP payment automation → Reconciliation
A business may choose to automate one, several, or all of these stages.
For example, an organization might already have an efficient process for receiving and approving invoices but still rely on significant manual effort when it’s time to pay vendors. For that team, AP payment automation may be the more immediate opportunity.
Another organization may struggle with manual work throughout the entire process. In that case, a broader AP automation strategy combining invoice automation and payment automation may make more sense. Many organizations start with invoice automation as a first step toward full end-to-end AP automation, which includes payment automation.
Understanding the specific problem you want to solve can make it easier to evaluate what a solution actually covers and whether it’s the right fit for your business needs.
What parts of the AP payment process can be automated?
The short answer is, it’s up to you! Payment automation solutions, such Mekorma Payment Hub, can automate multiple steps of the payment process while allowing room for company specific controls and check points to maintain and enhance security, while reducing risk.
Payment automation can support steps such as deciding what needs to be paid, ensuring the payment is sent to the correct vendor, and completing the payment process.
Depending on the organization’s environment, that may include:
- Vendor Compliance: AP teams can automatically confirm if vendor data remains accurate and compliant before sending payment.
- Payment preparation: AP teams can reduce manual effort involved in selecting approved payables and preparing payments for processing.
- Payment approvals: Automated workflows can help route payments through the organization’s required approval process before funds are released.
- Payment execution: Organizations can streamline how approved payments are issued to vendors across the payment methods they use.
- Payment tracking: AP teams can gain better visibility into payment status without relying as heavily on spreadsheets, emails, or manual follow-up.
- Reconciliation and completion: Automation can help reduce the work required after a payment is sent and make it easier to maintain accurate records.
Not every organization needs to automate every step. Start by identifying where the AP team spends the most time on repetitive work, workarounds, or follow-up today and look for areas that automation help.
Why automate AP payments?
For many AP teams, payment day concentrates a large amount of work into a short period.
Vendors expect to be paid accurately and on time but before that can happen: payments need to be prepared correctly and approved by the right people, sensitive vendor data and payment information needs to be verified and protected, and finance teams need confidence that the proper controls have been followed.
When those activities depend heavily on manual processes, the workload can grow quickly as payment volume increases, exposing the finance team to risk of errors or fraud.
AP payment automation can help organizations:
- Reduce repetitive manual work
- Strengthen consistency around payment controls
- Reduce opportunities for human error
- Improve visibility into payment activity
- Make payment processing easier to manage as the organization grows
Yes, automation helps payments happen faster, but the true value lies in creating a process that requires less intervention from AP while still remaining controlled and visible within the ERP.
Do you need AP automation or payment automation?
The answer depends on where the friction exists today.
If invoices arrive through multiple channels, require significant manual entry, or spend too much time moving through approvals, the organization may need to look more broadly at invoice processing or a holistic end-to-end AP automation strategy.
If invoices move efficiently through processing and approval but the payment process still requires significant manual preparation, coordination, processing, or follow-up, AP payment automation may be the better place to start.
Rather than starting with a technology category, start with the AP team’s current process. Where are people spending time on work that doesn’t require their judgment? Where are workarounds common? Where is visibility limited? And where does the team feel the most pressure?
Those answers can help reveal where automation will have the greatest impact.
Questions to ask before automating AP payments
Before evaluating payment automation, it helps to understand how payments work today.
Consider questions such as:
- How much time does the team spend preparing and processing payments?
- Which steps require manual entry or re-entry?
- How often are vendor records checked for compliance and accuracy?
- How are payments reviewed and approved?
- Which payment methods does the organization use?
- How does the team track payment status?
- Where do exceptions or delays typically occur?
- How much manual follow-up happens after payments are sent?
- Which controls are most important to maintain?
The answers will offer a clearer picture of what should—and shouldn’t—change. The right starting point is the part of the process that is causing the most friction.
A practical place to start
If payment processing has become a recurring source of manual work, workarounds, or stress for your AP team, it may be worth taking a closer look at how payments move from approval through completion today.
has spent decades helping accounts payable teams improve how they manage and execute vendor payments.
Curious where automation could have the greatest impact on your AP process? .