Kloo vs. Payhawk: Procure-to-Pay Comparison

November 24, 2023
Kloo vs. Payhawk Comparison
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CFOs are often tasked with finding the right financial management solution to meet the needs of their businesses and finance teams. Software-as-a-Solution (SaaS) automation has been a key player for financial operation due to its feasibility and applicability for a variety of use cases, and its ability to automate manual process tasks. 

Accounts payable (AP) software, also known as AP automation software or AP management software, provides the ability to streamline and automate the accounts payable process within an organisation. This software is specifically tailored to manage and optimise the various tasks associated with managing and paying invoices and managing supplier relationships. Ultimately, this eliminates manual and time-consuming tasks, reduces errors, improves efficiency, and enhances visibility and control over financial operations. AP automation SaaS can simplify and accelerate the procure-to-pay process, leading to greater cost savings and increased productivity. 

Kloo and Payhawk both provide viable and innovative solutions for businesses looking to implement automation processes in their AP workflows. In this detailed comparison guide, we will examine the unique features of Kloo and Payhawk, focusing on their product offerings for procure-to-pay automation. But before we dive into the product comparison, let’s break down exactly how AP automation works in the scale of procure-to-pay systems. 

How Does AP Automation Work? 

The process of AP automation begins with invoices being uploaded directly onto the platform, or captured directly from a separate email inbox. The software digitally reads and extracts purchase order, supplier, and invoice details, with features like optical character recognition (OCR) capturing and converting invoice data and sparing the team from data entry. The automated AP system then classifies, matches, validates data, and forwards it to the approval system. Once approved by the designated approver, invoices are given the final review before being synced with your ERP or accounting system. The invoice will then be routed for payment after review, using the supplier details captured in the extraction process. AP automation provides a set of viable benefits for financial processing and operations. 

These benefits include substantial cost savings, reduced risk of errors or fraud, and improved control over supplier payments. As a result, this streamlining enhances visibility into spend, aiding cash flow management and optimising vendor payments. Now we will dive into each of the product offerings to view each of their unique features for AP automation. 

What Does Kloo Do? 

Kloo is an AI-powered AP automation platform that streamlines the procure-to-payment process. Whether you are working towards invoice processing or automated purchase order workflows, Kloo delivers smart automation across a range of functions by leveraging AI throughout the platform. 

Kloo Product Capabilities Overview 

Kloo distinguishes itself with its advanced AI-powered automation across the entire procure-to-pay spectrum. Key capabilities include: 

  • AI-Powered Processing: Kloo’s embedded AI allows users to raise purchase orders via natural language through email or chatbot. This innovative approach augments automated approval flows and predictive spend analytics, providing strong budgetary context for finance teams. 
  • Touchless Invoice Management: At the heart of Kloo's offering is its ability to manage invoices with minimal human intervention. OCR and AI technology automatically 'read' and understand invoices, ensuring they are matched accurately to the required POs. This sophisticated technology facilitates both two-way and three-way matching, streamlining the invoice management process.  
  • Supplier Portal: Kloo offers a unified platform to manage suppliers, enabling automated invoice and PO matching, a visual breakdown of supplier spend, and the ability to add new payees directly from the platform. 
  • Flexible Payments: Kloo provides a variety of payment options, including faster payments, SEPA Instant Payments, BPR and EUR Wallet, Payment Initiation Services, and a smart payment run creation and approvals engine. This functionality is complemented by support for foreign currency invoices and off-platform email approval capabilities. 
  • Modern Procurement Cards: The platform supports globally accepted Visa virtual and physical cards, with features like new card and expense approval workflows, card controls, mobile app card management, receipt matching with OCR data extraction, and card spend analytics. 
  • ERP Integrations: Kloo streamlines the integration with ERP systems, offering seamless data transfer, eliminating manual uploads, and reducing errors to speed up the closing process. 

What Does Payhawk Do? 

Like Kloo, Payhawk offer AP automation solutions through purchase orders, invoice processing, and spend management. 

Payhawk Product Capabilities Overview 

Payhawk presents a robust, albeit less AI-focused, solution for procure-to-pay needs: 

  • Automated Purchasing Process: Payhawk simplifies the purchasing process, enabling users to submit and organize purchase requests in a centralized database. This feature enhances visibility on upcoming spend. 
  • Automated Approval Workflows: The platform facilitates multi-step approval workflows, allowing timely request approvals and helping maintain control over business spend. 
  • Intelligent Matching: Payhawk offers automatic 3-way matching to ensure purchase accuracy and identify discrepancies before issuing payments to suppliers. 
  • Simple Global Payments: The system supports low-cost international bank transfers, allowing payments to suppliers in over 160 countries across 50+ currencies. 
  • Purchasing Transparency: It provides comprehensive visibility into business purchases, aiding faster closure of accounts.

Feature Matrix of Kloo vs. Payhawk

Feature Category 

Kloo 

OpenEnvoy 

Automation Workflows 

Advanced AI-powered AP workflow automation 

Standard workflow AP automation 

Invoice Management 

Touchless invoice processing, powered by OCR and advanced AI technology 

Touchless invoice processing, powered by standard AI technology 

Purchase Orders Management 

Automated data capture, 3-way matching 

Automated data capture, 3-way matching

ERP Integrations 

Extensive range of no-code and API-based integrations 

Extensive range of API-based integrations 

Insights & Visibility 

Real-time spend insights for reporting 

Real-time spend insights for reporting 

Payments 

Smart, in-platform payment options 

No information on integrated payments on website 

Corporate Cards

Globally accepted Visa virtual or physical, single- and multi-use cards

Globally accepted Visa virtual or physical, single- and multi-use cards

Conclusion 

While both Kloo and OpenEnvoy offer solutions for financial management, Kloo stands out with its AI-driven approach, providing not only similar functionalities as OpenEnvoy but enhancing them with the power of AI. Kloo's use of OCR and advanced AI in invoice processing, for instance, not only matches but surpasses basic automation, making it more future-proof. As Kloo's AI learns from your data to guide its predictive spend insights, its capabilities will continuously improve, unlike platforms reliant solely on basic automation. This progressive learning aspect of AI ensures that Kloo's solutions evolve and adapt over time, offering a dynamic, efficient, and increasingly intelligent financial management experience.

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