Electronic Payments to Grow

Share this article:
The use of electronic invoicing and payment will increase in the business-to-business sector in the near future, according to the "B2B Spend Management Survey" released Aug. 11 by MasterCard International and Ariba Inc., a BTB software supplier.


Eighty percent of BTB transactions are completed using paper checks. However, two-thirds of companies with annual revenue exceeding $500 million use some form of electronic invoicing and payment, the survey found.


MasterCard and Ariba predict that by 2010, almost half of BTB transactions will occur electronically.


Also, 51 percent of respondents cited reduced processing time and lower costs as the main benefits of electronic payment systems. Respondents cited several barriers to wider adoption of such systems, including cost, which 25 percent saw as a hurdle. Other barriers included complexity, cited by 22 percent, and an aversion to making changes to their IT systems (19 percent).


Of companies that have no electronic payment system, 69 percent reported plans to adopt one in a year or two.


Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

NBA Names Insurance Exec as its CMO

NBA Names Insurance Exec as its CMO

Nationwide and State Farm veteran Pamela El takes the league's marketing helm next month.

Bloomberg Names Bigley CMO

Bloomberg Names Bigley CMO

Communications chief Deirdre Bigley is appointed head of global marketing for the business and financial news company.

2014 Essential Guide to Omnichannel Marketing

2014 Essential Guide to Omnichannel Marketing

The 2014 Essential Guide to Omnichannel Marketing‚ÄĒeverything you need to know about Omnichannel, all in one spot. Read on for insight.