New York, NY (PRWEB) May 14, 2012
SunGard announced today that virtual card volume has quadrupled year over year on the AvantGard PayNetExchange platform. PayNetExchange is a multi-channel payments platform that helps corporations migrate from checks to electronic payments via SunGard’s platform and vendor enrollment team. Virtual card programs help corporations execute electronic payments through a single use virtual card which helps not only reduce costs, but also offers a rebate program.
The benefits of migrating from paper check to ACH (Automated Clearing House) and virtual card can be substantial. In fact, when factoring in a virtual card rebate program, an Accounts Payable department can be transformed from a cost to a revenue center. Instead of spending an estimated $1.51 per paper check, SunGard estimates that corporations with an average check value of $1,100 can earn an average rebate of $13.75 on each virtual card transaction.
SunGard’s AvantGard PayNetExchange payments platform is available to corporations directly or to banks as a white-label service that can be integrated into a solution portfolio to offer a full spectrum of payment solutions from outsourced check printing to ACH, SWIFT, wires, and virtual card payments. The service includes a vendor enrollment program that helps a corporation’s vendors migrate from paper check to ACH or virtual card by creating custom call and direct mail campaigns to promote the service and benefits. There has been a 36% year over year increase in the number of vendors now being paid through SunGard’s PayNetExchange.
This data is supported by a recent SunGard study: “Leaving the Check Behind: A Look at the Movement Away from Paper Check Towards ACH and Virtual Card” that points to two key requirements among corporations for their payments execution solutions: an integrated payments platform offering multiple payment types and an embedded vendor enrollment service.
The study captured perspectives from 171 respondents representing corporations in a wide cross-section of industries. The findings reveal that a typical corporation sends thousands of payments to hundreds of vendors each month, with some spending upwards of 80 hours a month processing payments internally and, altogether incurring tens of thousands of dollars in annual direct and labor costs. To avoid this effort and expense, many corporations are now leveraging payments platforms. The study identified that the two requirements at the top of the list for corporations are an integrated platform that offers multiple payment types (e.g. ACH, virtual card, and wire…) and a vendor enrollment program that proactively contacts a corporation’s suppliers to convert them to electronic payments.
"Market forces and regulatory compliance are contributing to massive changes in payments markets in many parts of the world," says Nancy Atkinson, senior analyst with Aite Group. "Corporations can deal with these challenges by deploying technology to help reduce their cost structure and leveraging new services."
“As shown in this study, many corporations want an integrated payments platform offering multiple payment types,” said Rob Jacobson, senior vice president of payment services at SunGard’s AvantGard business unit. “With the ability to turn accounts payable into a revenue center through virtual card rebates along with the added benefit of a vendor enrollment service, corporations now have a compelling migration path away from paper checks.”
About SunGard’s AvantGard
SunGard’s AvantGard is a leading liquidity and risk management solution for corporations, insurance companies and the public sector. The AvantGard solution suite includes credit risk modeling, collections management, treasury risk analysis, cash management, payments system integration, and payments execution delivered directly to corporations or via banking partners. AvantGard solutions help consolidate data from multiple in-house systems, drive workflow and provide connectivity to a broad range of trading partners including banks, SWIFT, credit data providers, FX platforms, money markets, and market data. The technology is supported by a full range of services, including managed cloud services, treasury operations management, SWIFT administration, managed bank connectivity, bank on-boarding, and vendor enrollment, and is delivered by a team of domain experts. 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 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, 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 of about $4.5 billion, SunGard is the largest privately held software and services company and was ranked 480 on the Fortune 500. Look for us wherever the mission is critical. For more information, please visit http://www.sungard.com.
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