B2B ePayments: Using a Social Networking Model to Push Adoption of Electronic Payments to Your Vendors
New York (Vocus) May 12, 2010 —
The largest obstacles to making the transition from paper checks to electronic payments are the inability to enroll vendors in online programs and poor IT infrastructure, according to a poll taken by IAPP (International Accounts Payable Professionals), PayStream Advisors and SunGard.
During the webcast, “B2B ePayments: Using a Social Networking Model to Push Adoption of Electronic Payments to Your Vendors," 134 respondents were polled, including CFO’s, CEO’s, presidents, vice presidents and various accounts payable and treasury professionals from large-sized corporations and banks in the U.S.
When asked the primary obstacle preventing check to ACH and check to card migration, 48% of the participants pointed to an inability to get vendors to accept electronic payments. For each vendor, check to electronic payment migration requires obtaining and maintaining relevant payment preference or bank account details. Securing this information often requires formal approvals from within the vendor’s organization. Furthermore, 46% cited IT or internal challenges to implement as the biggest obstacle. While check printing is expensive, many companies do not have the technology to opt for an alternative method. Despite the numerous challenges related to in-house payment methods, which can be inefficient and manual in nature, an overwhelming 83% continue to process payments in this manner. These issues are preventing them from reaping the cost savings that can be obtained by leaving the paper check behind.
Midge Scelzo, chief financial officer of PlusOne Solutions, an AvantGard PayNetExchange customer said, “With AvantGard, not only can our employees access account activity at any time, but payees can also go online to view whether their payments have cleared and any other related details. From a finance standpoint, I am able to go into the system and easily reconcile transactions. We are pleased that everyone involved in the transaction has visibility into what is going on at every stage thanks to the convenience of the online portal.”
Mike Kresse, senior vice president of payments services at SunGard’s AvantGard business unit, said, “In spite of the high costs and inefficiencies related to paper-based payments processing, adoption of ACH and card payments on vendor invoices in North America is just now gaining momentum. As indicated in the poll, many companies are challenged by an inability to easily obtain and manage vendor data. AvantGard PayNetExchange helps solve this problem by providing corporations with a payments platform that offers users a centralized database for managing vendor payment preference and bank account information.”
To view a recording of the IAPP interactive webcast on ePayments adoption, click here.
About SunGard’s AvantGard
SunGard’s AvantGard is a leading liquidity management solution for corporations, insurance companies and the public sector. AvantGard provides chief financial officers and treasurers with real-time visibility into cash flows and increased operational controls around receivables, treasury and payments. AvantGard helps companies drive free cash flow and reduce inefficiencies across the EcoSystem of suppliers, buyers, banks and other trading partners. For more information, visit http://www.sungard.com/avantgard.
SunGard is one of the world's leading software and technology services companies. SunGard has more than 20,000 employees and serves 25,000 customers in 70 countries. SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue exceeding $5 billion, SunGard is ranked 380 on the Fortune 500 and is the largest privately held business software and IT services company.
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