Cloud-based payments platforms on the rise, survey finds

US-based corporate payment solutions provider Wex released the results of a third-party survey to gauge views of the payments-processing ecosystem.

WEX commissioned Zogby Analytics to conduct an online survey of CFOs and senior financial executives in the US, Europe and Asia/Oceania. From the 13th the 24th of April 2018, 501 CFOs and senior financial executives from the US, 206 from Singapore, Hong Kong and Australia (combined), and 207 from France, Germany, Italy, Spain and the UK (combined) completed the survey.

The survey revealed that financial companies have strong faith in the cloud. Large majorities of surveyed executives (the lowest is Asia, with 76%) trust cloud-based systems more than locally hosted ERP/AP systems to keep account payables secure. A vast majority of surveyed businesses (with Asia again the lowest, at 86%) are currently using cloud-based payments platforms.

The data uncovered additional key trends, as follows:

• Companies are still writing checks for business payments. Checks are the most common form of payments in both the US and Asia. In the US, it’s checks first (76%), then mobile payments (75 %), virtual cards and accounts (73%) and traditional ACH (73%). In Asia, checks (80%) and mobile payments (71%) also dominate. In Europe, virtual cards and accounts, and BACS/CHAPS are tied for first place, with 57% each.

• Half of businesses have an electronic payables initiative already in place; another third has one in the works. Just about half (50% in US, 56% in Europe and 43% in Asia/Oceania) of surveyed businesses have already implemented an electronic payables initiative, and more than one-third (37% in US, 38% in Europe and 42% in Asia/Oceania) have one underway. Almost all (89% in US, 91% in Europe and 85% in Asia/Oceania) of those who say they have a payables initiative in the works are planning to launch it in the next six to 12 months.

• Financial executives believe maintaining positive relationships with suppliers is as important as introducing new technologies. 95% in the US and Europe, 94% in Asia/Oceania—of those surveyed agree. Additionally, across the board, more than 85% of executives surveyed told Wex that they have been at least somewhat successful in brokering suppliers’ adoption/engagement with electronic payments.

• Executives are very optimistic about the effect of blockchain on their businesses. Large majorities of surveyed executives (over 80% everywhere) feel at least somewhat confident in their understanding of the function and capabilities of blockchain and distributed ledger technologies. American executives are particularly confident in this regard, with over half being “extremely confident.”