Paper checks may seem an outdated way to pay for products and services, but plenty of organizations still use them as their primary mode of payment. As per the Electronic payments survey report, 42% of organizations made payments to business customers using checks.The fact that checks have been around for years and their simplicity makes them a preferred choice of payment method between businesses event today. Due to this, AR teams at small and mid-sized businesses are stuck in paper-check processing, expensive bank lockbox services, and a highly manual cash reconciliation process. To overcome these problems mid-sized businesses are now moving towards digital payment services to modernize their payment cycle.
this blog helps uncover how paper-checks pose serious challenges to your business in the long run. We also suggest smart ways to overcome them.
B2B businesses are increasingly adopting digital payment methods As per NACHA 2019 report, the number of payments made by checks is down to 42% as compared to 51% in 2016. Within the next few years, one can expect a major chunk of B2B payments to be made via digital methods and cryptocurrencies. Digital payment formats help mid-sized businesses process faster payments and offer superior customer experiences.
Furthermore, automated RDC eliminates manual efforts and captures details more accurately, thus decreasing the chances of errors. Understanding the world of digitalization and determining the cost-benefits of the different payment formats is important before you make decisions around investing in e-invoicing and payment solutions.
Want to know more about how digital payments help mid-sized businesses in the B2B world? Check out this blog: “Redefining Accounts Receivables with Digital Payments”
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