Firms to use payment cards more than cheques
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Today, at the Visa Global Commercial Forum in
The Visa Global Cash Management Survey examined the use of corporate payment cards on a global basis. The survey was conducted in two phases. Phase I, conducted by Survey.com, a firm specializing in internet market research, involved US-based financial, treasury and cash management executives. Phase II, conducted by Penn, Schoen & Berland Associates, Inc., a strategic communications and market research firm, involved senior finance and treasury executives in four Visa regions, including Asia Pacific (AP), Central and Eastern Europe, Middle East and Africa (CEMEA), Europe, and Latin America and Caribbean (LAC). Corporate payment cards are payment and expense management solutions with information management services that are designed to help businesses and the public sector achieve cost savings, greater efficiency, control, and convenience.
"This international research shows that corporate payment cards are increasing in popularity as their transparency and information management benefits are becoming better recognized by financial executives around the world," said Aliza Knox, senior vice president, Visa Commercial, Visa International. "The research points to a growing industry trend that checks are declining in popularity because more companies are seeking solutions that optimize payment and expense management to help them make better business decisions."
"According to the worldwide survey, companies in Europe - similar to those in the US - are already accustomed to using corporate payment cards for account payables and receivables and as a result already appreciate the associated benefits," said Luc Janssen, Head of Visa Commercial, Visa Europe. "We're excited to learn from the survey results that companies in all markets around the world intend to use corporate payment cards more in the future."
Intention to Increase Use of Payment Cards
In the , nearly two companies in three (63 percent), and in
Improved Efficiency Through Corporate Payment Cards
The most important reason that companies worldwide plan to incorporate corporate payment cards is to reduce the associated administration and processing costs. In addition, companies recognize that electronic payment cards:
- Eliminate paper invoicing and payments
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Ease facilities payables and receivables
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Provide card transaction data for better vendor negotiations
Importance of Financial Transparency Cited
In general, 75 percent of companies recognize that the most important capability of electronic payment methods is to provide easier access to more transparent financial data. Companies ranked online access to payment and invoice-related detail as the second most important electronic payment capability. In addition, companies believe that electronic payments provide:
- Automated information reporting and back-end integration capability
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Ability to process high value payments
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Ability for buyer to control amount and frequency of payments
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Ability for buyer to initiate payments
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Ability for buyer to defer settlement of funds
Reasons for Current Cash Management Inefficiency Vary
Companies view their current cash management process as inefficient, primarily because of labor-intensive administrative work and inadequate information and reporting capabilities.
- In
Europe , LAC, and CEMEA, cash positioning and forecasting is seen as the least efficient process. -
In the and AP, collection and application is seen as the least efficient process.
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In LAC, disbursements are viewed as the least efficient process.
Visa Global Cash Management Survey: Objective and Methodology
The objective of the Visa Global Cash Management Survey was to provide a global view of cash management practices, and gauge the use and perceptions of corporate payment cards worldwide.
The first phase of the survey, conducted by Survey.com, was completed in August 2006, and involved the responses of 400 financial executives and cash managers from across more than 20 industries in the . The majority of respondents (85 percent) had annual sales of more than US$50 million per year, of which 56 percent represented companies with sales of more than US$500 million annually.
The second phase of the global survey was completed by Penn, Schoen & Berland Associates, Inc. in late February 2007, and included 383 telephone interviews of treasury managers, cash managers, and chief accounting officers and financial managers reporting to chief financial officers. The respondents across four Visa regions were employed by companies with over 100 employees and annual sales of at least US$25 million annually.
For additional information about global cash management practices, visit www.visa.com/cashmgmtsurvey
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Notes to Editors:
About Visa Commercial: Visa Commercial payment solutions -- Visa Business, Visa Corporate and Visa Purchasing -- combine payment with information to create intelligent payment solutions that are designed to enable business and government organizations of any size and type to reduce costs, streamline operational and payment processes, and make more informed business decisions. Backed by Visa's unsurpassed acceptance, Visa Commercial products and services are designed to provide a complete way to manage payment-related processes, including travel and entertainment and procurement expenditures, payroll distribution, and information management. For more information, visit www.visa.com/visacommercial
About the Global Commercial Forum: The Visa Global Commercial Forum, hosted by Visa International, is a global conference targeting multinational and large market Visa members. The Visa Global Commercial Forum brings together Visa member bank executives from around the world to showcase successful Visa Commercial programs and share best practices on "Driving Efficiencies with Intelligent Payment Solutions."