MINNEAPOLIS & ORLANDO, Fla., Jan 25, 2011 (BUSINESS WIRE) --
In the next three years, businesses, government entities and non-profit
organizations plan to double their use of paperless payment
technologies, according to a new survey of accounts payable (AP)
professionals. As a result, paper checks will shrink from more than 60
percent of a typical organization's payments to less than 31 percent.
More than 280 AP officers spanning 15 industries participated in the
summertime 2010 survey conducted by U.S. Bank, International Accounts
Payable Professionals (IAPP) and APQC.
Nearly 65 percent of those surveyed reported reduced paper check usage
in 2010 compared to the year before. For organizations exceeding $5
billion in revenue, it's even more pronounced - three out of four report
declining paper check use.
"While the survey indicates e-payment is growing across the board, the
larger the organization, the more likely it is to be happening," said
Kurt Adams, senior vice president of strategy and program management for
U.S. Bank Corporate Payment Systems. "With manual paper checks
contributing to the challenges many AP departments face, it's no
surprise that organizations are looking toward electronic payments to
address their pain points."
The trend is only going to accelerate, according to the survey's
projections. Respondents said they plan to nearly double the use of
purchasing cards, automated clearing house (ACH) and electronic funds
transfer (EFT) in the next three years. Paper checks could constitute
less than 31 percent of payments by 2014. Again, the largest
organizations are moving the fastest: they anticipate only 13 percent
paper payment by that time.
The e-payment migration might be happening even faster but for three
points of perceived resistance reported by survey respondents:
Internal concerns over cost of conversion and capability of staff to
handle it. This exists to some extent on all levels but is more
pronounced in smaller organizations.
Differing views on the efficiency of paper checks. Top managers are
more likely to believe that existing check systems work well. Lower
level folks? Not so much.
Supplier resistance to accepting electronic payment -- cited by 84
Many believe that such resistance will crumble in coming years as
financial institutions and payment providers step up recruitment of
suppliers for e-payment. Recruiting should become easier as more
suppliers who've made the switch report increased efficiency in their
accounts receivables processes through improved cash flow, expedited
cash application and the elimination of costly credit approvals and late
"Electronic payments have emerged as an alternative means of conducting
business, offering numerous tangible benefits for buyers and sellers
alike," said Mark Brousseau, vice president of research and business
development for IAPP-IARP-TAWPI. "The universal migration to e-payment
makes perfect sense, as does the projection of greater momentum over the
next three years, given the increasing pressure companies face to reduce
costs and improve agility."
Officials from IAPP and U.S. Bank will discuss the survey findings in a webinar
at 1:30 p.m. ET (10:30 a.m. PT) Thursday, Feb. 24. Click on this
link for free registration. You can also find more detail in U.S.
Bank's white paper, "Electronic Payments: Trends in Accounts Payable,"
posted on the
IAPP website under "publications" and on www.usbpayment.com
International Accounts Payable Professionals
(IAPP) is internationally recognized as the trustworthy guidance-setting
association for the accounts payable profession. Serving members
throughout the world, IAPP is the AP professional's global voice, chief
advocate, recognized authority, acknowledged leader and principal
educator on all AP operational, regulatory, leadership, tax, control and
fraud-related topics. Together, the IAPP and its sister organizations,
International Accounts Receivable Professionals (IARP) and The
Association for Work Process Improvement (TAWPI), have more than 6,000
members in 70 chapters throughout the United States, Canada and the
United Kingdom, and provide training, conferences, knowledge sharing,
certification, online resources, AP Matters, AR Matters and today
magazines, and more. For additional information, visit www.TheIAPP.org,
APQC is a member-based nonprofit and one of the
world's leading proponents of knowledge management, benchmarking, and
best practices business research. Working with more than 750
organizations worldwide in all industries, APQC provides organizations
with the information they need to work smarter, faster, and with
confidence. Visit us at www.apqc.org
or call (713) 681-4020 and learn how to make best practices your
About U.S. Bancorp
U.S. Bancorp (NYSE: USB), with $308
billion in assets as of Dec. 31, 2010, is the parent company of U.S.
Bank, the fifth largest commercial bank in the United States. The
company operates 3,031 banking offices in 24 states and 5,310 ATMs and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
SOURCE: U.S. Bancorp
U.S. Bank Media Relations
Teri Charest, 612-303-0732
Mark Brousseau, 717-767-2574