Grand Cos Lead Way in Digitizing B2B Payments

Chief financial officers (CFOs) say digitizing their accounts receivable (AR) and accounts payable (AP) functions is an integral part of modernizing their payment operations and improving balance sheet management.

CFOs of the largest companies are particularly likely to believe that, as 74% of people working in companies with annual revenue between $1.5 billion and $2 billion said they believed digitalization was important for improving balance sheets, according to “Business Payments Digitization,” a PYMNTS and Corcentric Collaboration based on a survey of 400 CFOs.

Get the report: Digitization of commercial payments

The same was reported by 59% of medium-sized businesses ($1-1.5 billion), 54% of small businesses ($750-1 billion), and 50% of smaller businesses ($400-750 million). of dollars).

Overall, among companies of all sizes, 59% of CFOs said digitalization is a very or extremely important strategy for improving balance sheets.

Capitalize on the growing use of digital payment methods

These digitization efforts partly reflect the desire of businesses to capitalize on the growing use of digital payment methods in the business-to-consumer (B2C) and business-to-business (B2B) markets, as digital processes for internal operations complement digital customer payments.

“At some point in the evolution of any business, digitization becomes necessary,” Corcentric President and COO Matt Clark told PYMNTS in an interview.

Read more: Peeling the “onion” of digital payments is key to maximizing cash flow

Once the pandemic hit the global economy in early 2020, initiatives to digitize payment transactions gained urgency as myriad businesses sought to streamline their operations and costs to offset the economic fallout. of the pandemic.

With so many digital payments streaming across the economy, businesses are gaining more than ever by digitizing their internal payment transactions. Because large companies have the largest transaction volumes, they have the most to gain.

CFOs are also prioritizing improving connections with their sources of working capital and anti-fraud systems, as well as improving their ability to take advantage of the current market environment.

Among the CFOs of the largest companies, the factors most often cited as being very or extremely important to creating healthy balance sheets are AR/AP (cited by 99% of these CFOs), investment in assets (93%), sources of capital or working capital. capital (61%), reducing fraud (36%) and managing operations efficiently in the current market environment (23%).

Implementation of digital payment infrastructures

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.

Many economic uncertainties remain about the future, especially when the health crisis eases, 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 than before March 2020.

Companies that have implemented digital payments infrastructures within their financial services are better prepared to deliver what they need to succeed.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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