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In B2B payments, the commercial card has experienced a dramatic spike in adoption this year as organizations accelerated their digital transformations and, unable to physically enter the office, began to rely on electronic payments to conduct their business. Winter Blues. Spring’s SMB Support. Summer Trips: Canceled.
Assessing trends in incoming and outgoing payments, supplier relationships, transaction volumes, purchase order (PO) verses non-PO payments, and Days Sales Outstanding (DSO) timeframes can provide valuable insight into where the low-hanging fruit of opportunity lies. A Holistic View. “It’s a matter of when, not if.”
” Mixing PaymentsTools. As CFOs move forward in their payments digitization strategies, migrating away from paper checks is of utmost importance, particularly in today’s touchless world. . “[That vendor] is probably an ideal candidate for an ACH payment somewhere in the future.”
In the flurry of payments innovation, it can be difficult to remember that legacy tools remain commonplace, especially in corporate payments. It’s a service designed around the ubiquity of the paper check, and with checks still a popular paymenttool in B2B transactions, lockbox services remain in high-demand.
It’s a stark contrast from its historical high of 81 percent in 2004, analysts noted, and suggests checks are steadily declining within corporate payments. The AFP’s report was released the same week a range of new electronic B2B paymenttools were announced, the latest in a deluge of digital payment solutions emerging in recent years.
As payments giants like Visa and Mastercard shift the innovation spotlight onto B2B transactions, developers of new accounts payable solutions are ushering in a growing trend: designing paymenttools not just for the payer, but for the B2B supplier as well. Discover Targets Reconciliation Data.
Although a recent uptick in B2B payments innovation has accelerated corporates’ migration away from the paper check, old habits die hard, and the legacy paymenttool remains a mainstay in the accounts payable (AP) department. But addressing payee needs is just as critical to easing the digital migration.
Particularly as enterprise digitization progresses, paymentdata will become ever more important to reconciliation and accounting, and as Leavitt explained, ACH and checks cannot always provide the volume and quality of remittancedata that cards can. And yet, suppliers remain skeptical of card acceptance.
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