Although the business payments environment has seen progress with digital tools in recent years, accounts receivable and accounts payable functions of small, medium, and large companies still predominantly rely on the use of inefficient paper and manual processes. Now, the unprecedented COVID-19 pandemic has increased the urgency for corporates, billers, and financial institutions to replace the paper processes that still exist in business payments.

To talk about why COVID-19 should serve as a catalyst for great advancements in digital tools, PaymentsJournal sat down with Ronald Shultz, Executive Vice President, New Payment Flows at Mastercard and Steve Murphy, Director of Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group.

PaymentsJournalNow More Than Ever, it’s Time to Modernize Business Payments Processes PaymentsJournal Now More Than Ever, it’s Time to Modernize Business Payments Processes PaymentsJournaljQuery(document).ready(function ($){var settings_ap20624435 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"20624435",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_88162_8",settings_ap20624435); }catch(err){ console.warn("cannot init player", err); } });

Digital Tools Benefit Businesses and Consumers Alike

Despite progress, the business payments environment has not come close to the rapid adoption of digital tools by consumers; research has shown that 79% of consumers worldwide are now using contactless payments. Between February and March 2020 alone, contactless payments doubled, while paper checks declined by 4%. 

The use of digital payment tools results in greater efficiencies in accounts payable and accounts receivable processes, improves cash flow management, and can provide consumers and businesses with payment optionality during and after the pandemic. There will also be lingering health and safety concerns around manually processing paper and needing to be in-office to receive and sign paper invoices and checks. Further, in the post-pandemic world, cost management will be top of mind for organizations looking to keep operating expenses down.    

For these reasons, it’s time for organizations to aggressively attack and replace the inefficient and costly paper processes that still exist within business payments. In other words, said Shultz, “COVID-19 should be a catalyst for great advancements in electronic payments.” 

Updating Business Payment Processes

It’s more important now than ever before to offer electronic payment choices, which means businesses still reliant on paper need to turn the page and update their processes. A good way to start is to identify all the paper products, whether it be invoices, incoming, or outgoing payments, and match digital solutions to them.

Virtual cards are one great option available to help businesses digitize payments. They were introduced as a way to enable buyers to use a card with the confidence that it is a one-time use pro...