Despite their high cost and inefficiency, its no secret businesses have been slow to move away from paper checks when paying for procurements. However, new research suggests that more companies than ever now use electronic payment methods for at least some of their purchases.
As many as 83 percent of respondents to AP Now's 2016 Payment Survey say their organization uses ACH to make some of its payments, while another 79 percent have issued corporate cards to their employees for purchasing certain goods and services.
While it is exciting to see so many companies taking advantage of the cost savings and convenience of electronic payments, far fewer use these options regularly. More than half say they still cut checks for 75 percent of their B2B transactions, a figure that disappointed the survey's authors.
"I was encouraged by the number of organizations that are equipped with ACH and commercial card functionality," says Recharged Education's Lynn Larson, the lead analyst on the project, in a statement. "But usage of these two electronic payment methods definitely has room for improvement. Checks retain a stronghold in too many organizations."
One reason so many businesses could still be clinging to the paper check is that not enough wholesalers are equipped to accept electronic payments. By outfitting your B2B payment gateway with ACH and business credit card processing technology, you will be able to not only help steer buyers toward using less expensive methods of payment, but will have an opportunity to differentiate your organization from its competitors.
As the approximately 80 percent of businesses experimenting with electronic payments realize its benefits, they will start looking exclusively for wholesalers that support these methods. For information on how to integrate more B2B payment options into your sales invoice and ecommerce checkout workflows, contact Vantage today.