January 27, 2022
Companies of all sizes would agree that they’ve benefited from digitizing their payments processes. According to studies, 91 percent of CFOs say that their organizations are more efficient due to the digitization of their payment processes, while 84 percent of these execs agree that digitization allowed them to improve their working capital.
In addition, most companies 62 percent said digitization helped them cut costs, while 61 percent said it helped them improve their data security. Another 60 percent said digitization helped improve their relationships with suppliers.
Company size didn’t seem to determine which companies saw the benefit of digitizing payments. Data from PYMNTS, a recognized global leader for data, news, and insights on innovation in payments and the platforms, shows that 62 percent of the largest companies reported that digitization helped them cut costs, compared to 60 percent of mid-sized companies, 70 percent of small companies and 57 percent of the smallest companies. While 61 percent of CFOs say they digitized operations for the purpose of improving efficiency, 91 percent say they experienced efficiency gains. By the same token, only 45 percent of CFOs say they had hoped digitization would improve management of working capital and cash flow, while 84 percent saw that benefit in practice.
Digitization and anti-fraud efforts
Companies also are using payments systems digitization as a reason to up their investments in anti-fraud systems. Half the companies surveyed said their digitization efforts helped them reduce fraud, especially among the largest companies: 67 percent of them say their fraud reduction efforts benefited from digitization.
Meanwhile, 48 percent of mid-sized companies, 44 percent of small companies and 42 percent of the smallest companies say digitization helped improve data security.
During the course of their digital transformation projects, 59 percent of companies added fraud detection systems. The largest companies led the way with 75 percent of installing these solutions. For mid-sized companies that number was 59 percent, with half the smallest companies installing systems to detect fraud concurrent with their switch to digital payments.
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