The economy’s exit from lockdown is prompting businesses that have not digitized their Accounts Receivable (AR) and Accounts Payable (AP) operations to follow the trend and begin to capitalize on an increase in digital business payments and consumers.
Chief Financial Officers (CFOs) of companies that have already digitized payment systems report that companies have experienced several benefits, according to Business Payments Digitization, a PYMNTS and Corcentric collaboration based on a survey of CFOs of companies that generate between $400 million and $2 billion in annual revenue.
Get the report: Digitization of commercial payments
Digitization of payment processes
Most respondents said that digitizing their payment processes has helped their businesses become more efficient, improve their working capital management, reduce costs, and improve their data security.
Optimized digitization of B2B payments can serve as “a catalyst for growth – and it strengthens your ecosystem”, says Corcentric President and COO Matt Clark said PYMNTS.
Read more: As trade payments go digital, buyer-provider relationships are getting stronger
Ninety-one percent of CFOs who took the survey said digitizing their payment processes made operations more efficient, 84% said it helped them improve their working capital management , 62% said it helped them cut costs, 61% said it helped them improve. data security, and 60% said it helped them strengthen their relationships with their suppliers.
Businesses large and small also benefit. For example, data from PYMNTS shows that 62% of the largest companies said digitization helped reduce costs, as did 60% of medium-sized companies, 70% of small companies and 57% of smaller businesses. In the total sample, including businesses of all sizes, 62% said digitization had reduced costs.
Positioned for success
Many savvy businesses of all sizes decided to digitize their payment transactions when the pandemic hit. After reviewing the economic landscape and considering their next steps, they accelerated a growing trend in payment digitization that was already noticeable.
The move to digitize payment processes over the past two years has allowed many businesses to take advantage of the pandemic-influenced economy. Many companies are hoping to move forward with more efficient and less expensive payment operations that will also allow them to increase their level of interaction with customers and suppliers.
Much economic uncertainty remains about the future, but one thing is certain: the new economy will continue to follow the trends of the past two years and will be fueled by a much larger share of digital payments.