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Canadian Companies Embrace e-commerce

Tuesday 22 June 2004 09:20 CET | News

Canadian businesses are embracing electronic purchasing, billing and payment for commercial goods and services which willaccount for one third of business transactions by 2008, according to a newly released study by Visa Canada.

The 2004 Visa Canada How Business Buys study helps Canadian businesses better understand best practices, and how they can maximize profit through the adoption of electronic payments for buying, selling, and managing their businesses. Electronic ordering almost triples The 2004 How Business Buys study, the third such study by Visa, predicts the percentage of orders placed electronically will grow from 15 percent of total orders in 2003 to 40 percent by 2008. Electronic ordering methods include e-mail, supplier websites, organizations extranets, marketplace sites, and e-procurement. Telephone and fax will still dominate in the coming years, but just barely, declining from 75 percent of total orders in 2003 to 51 percent by 2008. Move to electronic invoices The percent of paper invoices received by companies will decline from 90 percent of all invoices received in 2003 to 65 percent by 2008, reflecting corporate Canadas growing capability to deliver and receive invoices electronically. Delivery of electronic invoices over the Internet, known as electronic bill presentment, will grow from two percent of total invoices received in 2003 to 14 percent by 2008. Transmission of billing information electronically, called electronic data interchange, will also grow from two percent of total invoices received in 2003 to 13 percent in 2008. Electronic payments doubling By 2008, the percentage of commercial purchases paid for electronically will increase from 14 percent to 34 percent, while cheque payments will decline from 84 percent to 65 percent. Electronic payment methods include store cards and purchasing cards, a charge card that employees of medium and large size businesses use to pay for business operating expenses, in addition to electronic fund transfers, electronic data interchange and wire transfers. The Visa study found that in 2003, 84 percent of payments for commercial purchases were still made by the costly and time-consuming process of issuing cheques, and 90 percent of all invoices received by companies were paper, which are more costly and time-consuming than electronic invoices. As the leading payment brand for Canadian business, Visa has invested in understanding and serving its commercial customers. The Visa How Business Buys study is based on an in-depth survey of 635 senior purchasing and 299 travel and entertainment professionals. Findings are considered accurate within plus or minus 3 percent, 19 times out of 20.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce