Half of US Businesses Still Haven’t Adopted Electronic Payments: What’s The Hold-Up?
According to the most recent AFP Electronic Payments Report, 50% of businesses are still paying by check. While this number is in decline from the previous years (down from 81% in 2004), in today’s digital world, this is still a massive number.
So while many businesses are switching to electronic payments, many are holding on to checks. What gives? According to the AFP Electronic Payments survey, the following reasons are why businesses are hesitant to ditch those checks and adopt an electronic payment solution:
82 percent find it difficult to convince customers to accept e-payments
74 percent find it difficult to convince suppliers to accept e-payments
71 percent stated a lack of IT resources for implementation
70 percent have a lack of standard format for remittance information
66 percent cite a lack of integration between e-payments and accounting systems.
All of these are good reasons, but businesses need to seek solutions that address these issues. Checks and other paper-based processes are a drain on budgets, resources, and time, and can only be solved by adopting an electronic payment solution.
According to NACHA, it costs a business on average $2 to cut a paper check versus $0.35 to issue an electronic payment. While that might not be the biggest deal for a business making very few payments, once someone starts making over 20 payments per month, then it starts becoming costly.
For businesses who want to ditch checks and start saving time and money, take a look at our whitepaper The Business Guide to Online Payments and see what you need to look for when considering a new payment solution.
You can also sign up to attend our free webinar on February 12th to learn a better way to make and manage business payments.
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