Payments 101: Electronic Payments
Paper checks. Bitcoin. P-Cards. Wire transfers. These are examples of some of the payment options businesses have available to them. And while the majority of accounting and accounts payable (AP) professionals in the U.S. use electronic bill paying technology in their personal lives, their bill paying habits at work are a different story. Despite the ease and efficiency of electronic payments, a recent survey by MineralTree reported that 81 percent of finance professionals use paper checks frequently or exclusively at work. According to the research, current payment methods are causing nearly a quarter of organizations to experience cash flow problems because of unclear settlement windows.
So why are U.S. businesses still relying on risky, time-consuming paper processes to make payments when there are so many electronic options available to them? In large part, it comes down to lack of awareness or accessibility, according to BC Krishna, CEO of MineralTree. While electronic payments dominate our personal lives, finance professionals often don’t have access to similar options in the workplace.
As more businesses take advantage of electronic payments to pay vendors quickly, reduce security risks, and simplify the reconciliation process, we thought it would be helpful to provide an overview of the different payment types that businesses have access to, including the advantages and disadvantages of each.
To find out more about electronic payments for businesses, and how they can benefit your AP process, check out our whitepaper, “Payments 101: Electronic Payments.”
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