Treasurers Purging Paper, Opting for E-Payments, According to New Study

As treasurers continue to cut costs, speed up business, and maximize value, the check has lost its luster. This comes as no surprise, as payments experts have long been touting the importance of adopting e-payments for faster payments, more visibility, and better control of spending. However, just how many financial leaders are currently purging paper or plan on doing so? Nearly 80%, according to research from the Association for Financial Professionals (AFP).

This, according to the 2015 AFP Payments Cost Benchmarking Study, which found that a vast majority of treasurers surveyed are in the process of transitioning B2B transactions from paper checks to electronic payments.

“Treasury and finance departments are increasingly tasked with innovating and adapting to better serve their organizations, and moving from paper to electronic is one way to do so,” said Jim Kaitz, president and CEO of AFP. “AFP looks forward to tracking how payment trends and the associated costs will evolve over time.”

The 2015 AFP Payments Cost Benchmarking Survey, underwritten by Bottomline Technologies, surveyed 534 treasury and finance professionals, and found that among the 80% that are already moving away from paper checks, that two reasons—cost and efficiency—are leading the rationale behind e-payments adoption.

• Efficiency: Nearly nine out of ten (88%) cite efficiency as their main reason for transitioning to e-payments.
• Cost Savings: Nearly two out of three finance professionals believe that with quantified cost savings, that they would make the move to e-payments.

But how much does paper-based check processing cost? $360,000 per day, according to the survey. E-Payments are revolutionizing this process, cutting costs for both those companies who adopt an e-payments strategy.

Related: The Future of Payables: Paper-Based Processes Give Way to Automation

Why Purchasing Companies Save with E-Payments

An article featured on PaymentsSource disclosed the semiannual 2014 Purchasing Card Benchmark Survey highlighting how important virtual cards/electronic accounts payable (EAP) are, and the increasing amount of company use:

“AVERAGE MONTHLY EAP SPENDING OF SURVEYED COMPANIES REACHED $1.9 MILLION IN 2013, MORE THAN TWO-AND-A-HALF TIMES THE AVERAGE MONTHLY SPEND OF $747,522 JUST A FEW YEARS EARLIER. AMONG EAP-USING ORGANIZATIONS, EAP SPENDING NOW ACCOUNTS FOR 55% OF ALL CARD PURCHASES, UP FROM JUST 26 PERCENT IN 2009.”

For more information, see Three Ongoing Considerations in Corporate Payments, the PaymentsSource Article, ‘Virtual Cards Can Revolutionize Corporate Spending’, and the benefits of going green in payables.

Why Suppliers Love E-Payments

The cost (and paper) savings are just one benefit, but did you know that your suppliers would love to receive e-payments? In a recent article featured on WEX Corporate Payments, we covered five reasons suppliers love e-payments:

• Ease of Use
• Less Paper Waste
• Faster Processing
• Better Security
• Smarter Data

Looking for even more? Follow WEX on LinkedIn to get the latest in Corporate Payments News.