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Supplier Payments: Electronic Methods Are Slowly but Steadily Gaining Ground

Many consumers are rapidly making the switch from check payments to electronic payments. An Aite Group report estimates that just about one-third of all consumer-to-business payments are made through the mail, with this number expected to decline even further over the next few years1.

On the business-to-business (B2B) side, however, check payments still dominate. According to the Association of Financial Professionals, a typical organization makes half its B2B payments by check in 2013. However, the good news is that the percentage of check payments is down from 74 percent in 2007 and 57 percent in 20102.

Many organizations are slowly but steadily moving away from paper checks to electronic payments like ACH, wires and paycards. Some of the catalysts that are driving the migration from check to electronic may include:

  • opportunities to outsource payment processing functions
  • the coupling of electronic invoicing with electronic payments through an integrated platform
  • the availability of rich remittance information along with electronic payments
  • supplier enablement and banking information collection services offered by technology vendors

A recent survey by PayStream also indicates the positive trend in this area, with an increase in electronic payments and a corresponding decrease in the use of checks3.

PayStream Advisors Survey shows checks decrease as electronic payments continue to increase

To learn more about ADP’s electronic payments solutions, click here.

1 Aite Group Research Report, How Americans Pay Their Bills: Sizing and Forecasting Bill Pay Channels and Methods, 2010-2013
2 Association for Financial Professionals Report, 2013 AFP Electronic Payments Survey
3 PayStream Advisors Inc. Report, Supplier Electronic Payments 2013: Optimizing Working Capital for ePayments


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