GS Logo
The Green Sheet, Inc

Please Log in

Banner Ad
View Archives

View PDF of this issue

Care to Share?


Table of Contents

Lead Story

Gen Y poised to rock payments

News

Industry Update

Senate committee brings interchange to account

W.net set for Boot Camp

Opening Pandora's Box?

HMS' parent sold

Alleged TJX cyber criminals indicted

Payments primed for new growth

To listen actively

Vicki M. Daughdrill
Small Business Resources LLC

Features

GS Advisory Board:
What's up in this downturn? - Part I

In transit with the unbanked

ISOMetrics:
Generation Y not?

Views

Banking on generational changes

Patti Murphy
The Takoma Group

Education

Street SmartsSM:
Telemarketing - The horn of plenty

Jason Felts
Advanced Merchant Services

Bold new mode in modems

Dale S. Laszig
DSL Direct LLC

It really isn't what you know

Nancy Drexler
SignaPay Ltd.

The buyers are back

Lane Gordon
MerchantPortfolios.com

To listen actively

Vicki M. Daughdrill
Small Business Resources LLC

The buyers are back

Lane Gordon
MerchantPortfolios.com

Company Profile

IMS Inc.

New Products

Mirror success with facecard

facecard
Company: edő Interactive

Data breach insurance has your back

Merchant Data Security Policy
C.L. Frates and Company

Inspiration

Burnish legacy with mentoring

Burnish legacy with mentoring

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

August 25, 2008  •  Issue 08:08:02

previous next

Payments primed for new growth

Electronic payments of all types have experienced higher growth rates in recent years, according to Commercial Payments International (CPI), a payment consulting and analysis firm. CPI expects this trend to continue as more companies move away from inefficient paper-based systems.

The company conducted a survey in early 2008 to explore what drives growth in the use of commercial cards. The company found three key influences:

Commercial card products include any type of card product a company uses for business-to-business (B2B) payments, including purchase cards (p-cards), travel and entertainment (T&E) cards, fleet cards, and prepaid and contactless cards.

"P-cards and T&E cards are issued to a company employee for purchase of specific items from a preapproved vendor," said CPI Principal Joanne Robinson. "The government is big on them, and the control mechanisms on them are wonderful."

She noted that the benefits are less paperwork and the ability to collect aggregate data. "This is not only cost-effective, but it gives you an opportunity to go back to your suppliers and negotiate better terms," she said. "However, the ability to control 100 percent of your employee expenses is the biggest benefit."

Key drivers to conversion

According to CPI, there is a remarkable opportunity for a full range of electronic payment products and services to give organizations extra advantages.

In its recently published white paper, Driver of Growth in Electronic Commercial Cards and Payments, the company noted some of the key growth drivers for the payments industry:

Lock down price controls

CPI predicts the prospects for both electronic commercial cards and the payments industry overall will remain strong as companies increase controls, negotiate discounts and reduce costs by switching from manual to electronic processing. Commercial payments, including paper and electronic transactions, topped $80 trillion in 2006. CPI expects this figure to exceed $110 trillion by 2012.

However, Robinson said that in 2006 commercial cards accounted for only 1.1 percent of total commercial payment volume and is still a huge, untapped potential revenue source for ISOs and merchant level salespeople.

Open doors for smaller merchants

"I think those smaller businesses, by definition, are slower to adapt technology, but that's just due to a lack of knowledge about the products and their benefits, or due to the lack of skills within the business to implement it," Robinson said.

"I really think it's just going to be the industry pushing it more and making the smaller merchants aware of the advantages to switching over to electronic processing" for their B2B transactions, she said. "Most of the larger organizations have been converted. Now it's time to go deeper in their efforts to reach the smaller merchants."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services