Endava, a global provider of digital transformation, agile development, and intelligent automation services, announced the publication of their 2022 Global Payments Study. The report examines the global norms of today’s business-to-business (B2B) payments, the challenges of running a manual process, the benefits of digitization, and what payments might look like in the future.
“Over the past two years, companies began to challenge their reliance on the legacy systems they were supposedly tied to and wondered how they could improve their daily processes,” said Scott Harkey, Executive Vice President, Financial Services & Payments, Endava. “Our data reveals a payments landscape where organizations are no longer satisfied with the status quo and are using modernization initiatives to increase efficiency.”
Key insights from the report include:
Endava asked survey respondents about their organization’s top initiatives and how they plan to change current payment method volume in the future to help anticipate the future of B2B payments. The highest priority initiative was security strengthening, which is consistent with the large number of organizations citing fraud as a major challenge in domestic and international payments.
Payment digitization was the second most important initiative for respondent organizations. To achieve this, organizations intend to aggressively increase the use of methods such as digital wallets, real-time payments (RTP), cards, virtual cards, and Automated Clearing House (ACH) while decreasing the use of dated, paper-based methods such as checks and cash. A sizable proportion of those who are already using them intend to increase their use of cryptocurrency in the future. However, many organizations deemed cryptocurrency (as a means of payment to vendors) inapplicable to their operations.
Endava data shows that retailers were more likely to have issues with payment errors, data management, late payments, and compliance when the study was broken down by industry. These problems are frequently caused by inconsistencies in the way payments are handled. Companies in the mobility vertical, on average, struggle with customer inquiry management, disparate technology, fraud, and payment errors.
Insurers and non-bank finance organizations face more quantifiable challenges than other businesses. Days payable outstanding, a lack of visibility into payments, duplicate invoices, and reliance on paper-based processes are examples. Many of these issues are directly related to invoicing.
Middle East and Africa
North America:
Europe
Data Summary
This study’s data comes from a 2022 survey of over 1,000 organizations of various sizes and industry verticals (except for banking institutions). Respondents were in senior management or higher and had intimate knowledge of and decision-making authority over their organization’s finance and payments strategy and processes.