The Forrester Wave™: Accounts Payable Invoice Automation, Q3 2024

Accounts Payable Invoice Automation Vendor Product Comparisons 2024

Key features and pros and cons of top Accounts Payable Invoice Automation products:

Basware - Leaders

Pros:

Largest specialist provider of APIA software with strong presence in EMEA and North America
Customer-centric product vision with active feedback collection and cocreation programs
Detailed multiway invoice matching across document types, including advanced matching for up to 10 different additional costs
Excels in exception handling, particularly managing non-PO invoices with AI/ML-generated codes and predicted accuracy
Helps drive touchless invoice processing and automate the last mile of AP processes

Cons:

Needs to accelerate adoption of new technologies such as generative AI to defend against competitive disruption
Must improve capabilities in payments, reconciliation, and financing; plans to complement via M&A
Some integrations need to be more seamless according to reference customers

Coupa - Leaders

Pros:

Strong AI and analytics capabilities covering both AP and broader business spending management
Rich process benchmarking metrics and AI-generated suggestions for gap analysis and improvement
Outstanding fraud and risk management using massive customer community data to train AI/ML-based risk models
Covers all major payment methods with strong payment reconciliation capabilities
One of the strongest ecosystems of partners and customer peer communities

Cons:

Some competitors have more flexible tiered-based pricing and bolder APIA vision
Needs to improve third-party financing capabilities to offer more financing provider options
UI and customer support need improvement according to reference customers

Esker - Leaders

Pros:

Continues to invest heavily in new technologies with frequent product upgrades including ChatGPT-based chatbot
Customized supplier portal allowing easy early payment requests with dynamic discounting
Strongest e-invoicing compliance support in the largest number of countries in the evaluation
Self-service user interface and genAI chatbot earning praise for robust AI capabilities and excellent customer experience
Excels in providing flexible and customized pricing options for clients
Differentiated product roadmap including planned carbon analytics feature

Cons:

Needs to conduct more in-person customer community activities
Dispute workflow lacks full visibility to both buyers and suppliers
Must invest in its supplier network

Medius - Contenders

Pros:

Solid AI-generated coding for non-PO invoices to drive touchless invoice processing
Strong payment reconciliation features with rich remittance details offered to suppliers
Allocates 20% of revenue to R&D
Flexible pricing based on predicted invoice volume and usage

Cons:

E-invoicing coverage is relatively narrow
Lacks dynamic discounting and supplier network support
Needs to improve dispute workflow to provide email notifications to suppliers
Product vision needs to incorporate more customer feedback
Must improve understanding of competitive landscape
Some workflows are difficult to modify and some analytics are difficult to understand according to reference customers
Needs to invest more in customer community for both offline and online engagement

OpenText - Challengers

Pros:

Solid e-invoicing compliance coverage in more than 45 countries
Strong integrations with multiple systems such as ERP, CRM, supply chain management, finance, and treasury
Supplier network enhances collaboration between buyers and suppliers with better end-to-end visibility

Cons:

Lacks capabilities in payments, discount management, and third-party financing
Lacks specific roadmap and detailed plans for achieving innovation goals
Needs to make community and pricing strategies more comprehensive
Declined to participate in the full Forrester Wave evaluation process

Tipalti - Contenders

Pros:

Licensed payment service provider in the US supporting all major payment methods
Excels at payment reconciliation, ensuring status of all payments and data from each payment method is reconciled and sent to ERP
Strong payment capabilities helping manage large numbers of complex international payments and banking details
Offers offline email notifications for manual approval including all essential information
Large number of partners in technology and professional services verticals

Cons:

Lacks process monitoring, e-invoice compliance, and contract compliance capabilities
Innovation plans and product roadmap lack differentiation; many already achieved by competitors
Needs to focus more on value-based pricing strategies and make pricing more flexible and customized
Needs to invest more in in-person customer community activities

Tungsten Automation - Contenders

Pros:

Solid supplier portal providing comprehensive supplier functions and automatically previews/checks invoices before sending to buyers
GenAI-based chatbot provided to all clients without charge
Dedicated compliance team with automated compliance tools supporting e-invoicing compliance in more than 50 countries
Holistic online and offline customer community activities to deliver additional value

Cons:

Lacks third-party financing feature
Does not support multiple payment methods
Payment reconciliation can only be achieved via customization
Only one reference customer responded to Forrester's outreach for this evaluation
Needs to enhance competitive analysis to better realize vision and address competitive threats
Roadmap lacks differentiation

FAQs

Q: Which vendors are Leaders in 2024?

A: Basware, Coupa, Esker

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave demonstrate the strongest current offering and strategy among evaluated vendors. They have established themselves as powerhouses in the APIA market with strong product capabilities, customer obsession, practical innovation, and solid execution. Leaders typically excel in key differentiating areas such as exception handling, AI capabilities, e-invoicing compliance, and rich analytics insights. They maintain strong market presence with robust customer bases and are well-positioned to help organizations automate complex AP invoice processes.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Accounts Payable Invoice Automation in 2024

Accounts Payable Invoice Automation Vendor Product Comparisons 2024

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FAQs

Q: Which vendors are Leaders in 2024?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

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