SOUTH PORTLAND, Maine--(BUSINESS WIRE)--WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, released the results of a third-party survey to gauge views of the payments-processing ecosystem from chief financial officers and senior financial executives across the globe.
The survey of more than 900 CFOs and senior financial executives from the U.S., Europe and Asia/Oceana revealed that strong faith in the cloud prevails in this group. Large majorities of surveyed executives (the lowest is Asia, with 76 percent) 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 percent) are currently using cloud-based payments platforms.
Safety, in fact, came up as a primary concern, with 53 percent of American executives and 49 percent of European financial executives likely to be very concerned about information security as it relates to payments, compared to just 26 percent of their Asian counterparts. But overall, between 58 percent and 68 percent of respondents from all regions rated security of transactions as the most important attribute of a payments solution.
The data uncovered six additional key trends:
- Not going entirely paperless just yet: Companies are still writing checks for business payments. Checks are the most common form of payments in both the U.S. and Asia. In the U.S., it’s checks first (76 percent), then mobile payments (75 percent), virtual cards and accounts (73 percent) and traditional ACH (73 percent). In Asia, checks (80 percent) and mobile payments (71 percent) also dominate. In Europe, virtual cards and accounts, and BACS/CHAPS are tied for first place, with 57 percent each.
- E-pay on the way up: Half of businesses have an electronic payables initiative already in place; another third has one in the works. Just about half (50 percent in U.S., 56 percent in Europe and 43 percent in Asia/Oceania) of surveyed businesses have already implemented an electronic payables initiative, and more than one-third (37 percent in U.S., 38 percent in Europe and 42 percent in Asia/Oceania) have one underway. Almost all (89 percent in U.S., 91 percent in Europe and 85 percent 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.
- Suppliers engagement is critical: Financial executives believe maintaining positive relationships with suppliers is as important as introducing new technologies. Overwhelming majorities—95 percent in the U.S. and Europe, 94 percent in Asia/Oceania—of those surveyed agree. Additionally, across the board, more than 85 percent of executives surveyed told us that they have been at least somewhat successful in brokering suppliers’ adoption/engagement with electronic payments; more than half (51 percent) of U.S. executives we polled rated their supplier adoption as very successful. From the other side of the table, suppliers across markets value security and speed of settlement, as well as cost of acceptance as the most important aspects of an accounts payable solution.
- Hungry for more: Appetite is strong for further innovation and disruption in payments. Most surveyed executives agree that payments providers should offer more innovative technology (81 percent at least somewhat agree) and that consumer behaviors strongly influence their business’s use of payments technology innovations (80 percent).
- Leaders of the pack: The finance/banking industry is seen as a pioneer in the payments and the new technology space. Survey respondents see finance/banking as an overwhelming favorite (54 percent) to be the first industry to successfully implement blockchain and is seen as the most innovative industry with respect to payments.
- Best on the block: Executives are very optimistic about the effect of blockchain on their businesses. Large majorities of surveyed executives (over 80 percent 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.”
“We at WEX recognize the importance of maintaining a forward-looking perspective on what’s happening on the payments landscape,” said Jay Dearborn, President, WEX Corporate Payments, WEX Inc. “The survey findings support our belief that the e-Payables industry and trend is showing no signs of deceleration, and new technologies are key to delivering faster, more secure payments and settlements to companies. We continue to innovate in terms of product development in order to provide our customers with the service they expect, as well as the nimble product innovation capabilities and payments security they deserve.”
WEX Inc. commissioned Zogby Analytics to conduct an online survey of CFOs and senior financial executives in the U.S., Europe and Asia/Oceania. From April 13 to April 24, 2018, 501 CFOs and senior financial executives from the U.S., 206 from Singapore, Hong Kong and Australia (combined), and 207 from France, Germany, Italy, Spain and the U.K. (combined) completed the survey. Based on a confidence interval of 95%, the margin of error (MOE) is ± 4.4 percentage points for the U.S., ± 6.8 percentage points for Europe and ± 6.8 percentage points for Asia/Oceana.
About WEX Inc.
Powered by the belief that complex payment systems can be made simple, WEX Inc. (NYSE: WEX) is a leading provider of payment processing and business solutions across a wide spectrum of sectors, including fleet, travel and healthcare. WEX operates in more than 10 countries and in more than 20 currencies through more than 3,300 associates around the world. WEX fleet cards offer 11.5 million vehicles exceptional payment security and control; purchase volume in its travel and corporate solutions grew to $30.3 billion in 2017; and the WEX Health financial technology platform helps 300,000 employers and more than 25 million consumers better manage healthcare expenses. For more information, visit www.wexinc.com.
About Zogby Analytics
Zogby Analytics is respected nationally and internationally for its opinion research capabilities. Since 1984, Zogby has empowered clients with powerful information and knowledge critical for making informed strategic decisions. The firm conducts multiphased opinion research engagements for banking and financial services institutions, insurance companies, hospitals and medical centers, retailers and developers, religious institutions, cultural organizations, colleges and universities, IT companies, and federal agencies. Zogby’s dedication and commitment to excellence and accuracy are reflected in its state-of-the-art opinion research capabilities and objective analysis and consultation.