B2B Payments Organizations: Fighting Fraud Still A Top Priority In 2022

November 9, 2022

This week we take a look at the 2022 Global Payment Study released by provider of digital transformation, agile development and intelligent automation services, Endava (NYSE: DAVA).

This study comes from a survey conducted in 2022, and comprised over 1,000 organizations of all sizes. It took a look at the challenges of operating a manual process, the benefits of going digital, and what the payment environment could look like as we go forward in business-to-business (B2B) payment environments all around the globe.

 

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. Our data reveals a payments landscape where organisations are no longer satisfied with the status quo and are using modernization initiatives to increase efficiency

Some of the highlights of the study include how the payment environment has dramatically changed.

-Paper-based payment methods have fallen in popularity, with checks and cash making up one-fifth of payment volume combined worldwide.

-Organizations make use of several tools for making payments.

-The most widely adopted bill payment methods are bank providers, however, people are also using e-payment software.

-Companies’ top priority moving forward is to strengthen security, improving use of analytics and to further digitize payments.

To help anticipate the future of B2B payments, Endava asked survey respondents about their organisation’s top initiatives and how they plan to alter current payment method volume in the future. The highest priority initiative was strengthening security which is congruent with the high number of organisations citing fraud as a top challenge in domestic and international payments.

Since digitizing payments is a priority as well, respondents revealed they are planning to strengthen the use of digital walkers, real-time payments (RTP), cards, virtual cards, as well as slowly reducing the usage of paper-based payment methods.

A big portion of companies who use cryptocurrency are planning on increasing its usage in the future, however, companies that don’t use it are not planning to, to cite Finextra on this, “many organisations identified crypto (as a means of paying vendors) as not applicable to their business.”

Looking the the industry, retailers are most likely to have problems with payment errors, data management, late payments, and compliance. This, they explain, is due to inconsistencies in the handling of payment.

Some of the problems non-banking organizations and insurers face are a little different; such as lack of visibility into payments, duplicate invoices, and the over-reliance on paper-based payment methods such as cash or checks. These problems are mostly tied to invoicing.


Regions

Endava’s studies reveal that digital wallets are “ripe for growth” in North America; they have been moving on from checks and cash for their payments, but it is noted that this trend has not been taken in by businesses yet. However, younger generations are expected to shift this trend, as they expect digital payments.

Next day-to-day bank-to-bank transfers make up a higher number of payments in the EU than in any other region.

Cash and checks are at a lower volume in the EU compared to other regions. These payment methods are a rarity in Europe because the digital alternatives for transferring money are easy to use and ubiquitous

In the Middle East and Africa, Saudi Arabia has shown the fastest adoption of real-time payments. Cash transactions are high, as well as alternative methods, which include cash-on-delivery are greatly popular.

 The correspondents were at senior management level or higher and possessed intimate details and knowledge of the industry and their companies. 

Want to learn more? Check out The Fintech Times’s full write-up  here.

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