AP research unveils low satisfaction levels with payment processes

The study titled “Strategies for Managing Supplier Payments,” conducted by market research firm Gatepoint Research and sponsored by Tipalti, a provider of global payments automation platform, found that 51% of participants were dissatisfied with the processes they use to pay their suppliers. According to the findings of the study, more than 70% of these respondents also spend five or more hours a week managing supplier payment operations.

The survey also exposed potential concerns with the systems and processes currently in place to mitigate regulatory, compliance and fraud related payment risks. For example, payment regulatory compliance is an issue, with 66% of respondents admitting that they did not have or were unsure if their company screens payees in accordance with the US Patriot Act. This includes screening for anti-terrorism, money-laundering and drug trafficking requirements established by the Treasury Department’s Office of Foreign Assets Control (OFAC). Concurrent with these findings, the survey also found that 58% of the respondents report low to medium satisfaction with the fraud monitoring applications they currently have as part of their global payment processes.

Additional findings from the survey include the fact that 82% of respondents execute over 100 payments a month with 76% making international payments to suppliers. Another finding states that on average, accounts payable departments only use three payment method options. Wire transfer is the payment of choice for almost all the companies surveyed, with 95% percent usage by respondents. Paper checks (88%) and automated clearing house (ACH) are popular as well, while 32% of the companies use electronic checks/international ACH.

Furthermore, 51% of respondents report that they could improve the way they manage their payment fees. 37% of survey participants already had a payments automation system in place while another 37% have plans for, or would consider, a payments automation system. Finally, the report notes that companies with a payments automation system in place showed significantly higher levels of satisfaction across every area of the payment management operation.

The survey conducted by Gatepoint Research on Tipalti’s behalf earlier in 2015, polled (via email) 100 senior finance decision makers and executives. Participants represented US companies in the retail, business services, technology and media sectors with annual revenues between USD 5 and USD 250 million.