Businesses are slow to completely digitize their business-to-business transactions despite cost-saving incentives, Blair Jeffery, COO at Noventis, wrote in a recent blog post.
Here are five findings to know about the B2B payment sector heading into 2017, according to Mr. Jeffery.
1. The number of paper-based B2B payments increased from 50 percent in 2013 to 51 percent in 2016, according to the Association for Financial Professionals. While that number is down from 74 percent of all B2B payments in 2007, the rate of decline has slowed, suggesting stubborn barriers to change.
2. Bank of America estimated the cost to process a paper check ranged between $4 and $20, according to The Wall Street Journal. Processing costs include material expenses, shipping and the time employees spend writing, mailing, collecting and reconciling paper payments.
3. Issuing and depositing checks cost U.S. businesses between $26 billion and $54 billion in 2010, according to The Wall Street Journal.
4. Electronic checks cost businesses about 55 cents on average to process due to reduced material and labor expenses, according to Pay Simple.
5. Despite potential cost savings, less than 2 percent of U.S. businesses use bank-offered bill pay solutions, according to the 2016 AFP Electronic Payments survey. Respondents indicated electronic payment infrastructure currently does not give businesses the control and flexibility they need to fully digitize B2B payments.