Mid-sized companies lead transition to digital B2B payments - study

The study called Digital B2B Payments for Mid-Sized Firms: How to Complete the Job, was conducted by Harvard Business Review Analytic Services and sponsored by Capital One Commercial Banking.

Almost all of the mid-sized companies surveyed have digitised at least some of their transaction streams, implementing electronic funds transfer, automated payments, online payment portals, and virtual cards, among other tools. The survey revealed that roughly half of total payment value has been digitised by about 50% of the mid-market companies—and that it is already delivering many hoped-for benefits. Respondents reported lower costs through personnel efficiencies, real-time visibility into incoming invoices and outgoing payments, the ability to better analyse spending, increased transaction processing speed, and convenience for partners, suppliers, and employees.

However, the report notes that there are still obstacles and preconceptions to overcome. At the top of the list are supplier acceptance and compatibility with existing financial systems. Supplier resistance was mentioned by 36% of the participants while lack of interoperability was cited by 35%.

Another important finding of the survey was that concerns about transition costs may be unfounded. Cost was cited by almost a quarter of the participants as the biggest obstacle to deploying B2B digital payments systems faster in their organisation. However, the survey revealed that 20% of those who had adopted digital payments said the project paid for itself within a year.

The results of the study are based on a September 2018 survey of 159 financial professionals from companies with annual revenues between USD 25.0 million and USD 1.99 billion