Use of Electronic Payments Growing
/The use of electronic methods of payment for companies is growing, according to a study by the Association of Financial Professionals (www.afponline.org). An annual survey of electronic payment usage shows that while checks are still the dominant form of payment processing, the use of checks has declined from 81% of all payments in 2004 to 74% in 2007. The most commonly cited reason for the shift is to lower transaction cost. Another interesting statistic is that 43% of the companies surveyed are looking to convert their major suppliers to electronic payment formats in the next three years.
Other research corroborates this information. World-class companies focus on process standardiation and technology integration to increase efficiency and lower transaction costs. The companies in the survey have been and will continue to look for ways to more effectively deploy technology that will facilite electronic processing, primarly ACH, P-card and wire transactions.
