2020 is unlike any year before it.
The Business Payments Barometer gives a snapshot in time before new ways of working transpire. We’ve seen a significant impact on business payments already, with new regulations and greater fraud losses. Staying well-informed of these changes will be a strong focus in 2020, but highest on the agenda will be how companies can accelerate the process of digitization as we deal with and emerge from the COVID pandemic.
What should I know about this year’s 2020 Payments Barometer?
For the second year in a row, technology tops the drivers of change over the next 12 months, beating both fraud prevention and changes in the trading environment.
60% of respondents see mobile as the biggest driver of change for 2020 – but, it’s not the only technology-focused driver that ranks in the top 3.
This highlights the need for a post-COVID focus on digitization. Would this create a negative domino effect on the priority of other business-critical areas, such as payment fraud prevention?
Impact of Payment Fraud
Overall, the concern for payment fraud has declined, suggesting greater resilience in the market. Is better education and a more proactive approach the cause? However, it’s not all positive…
The average cost of fraud loss is on the up. Whilst enterprises were able to recover 4% more in 2020, small businesses, and medium and large corporates were not as lucky.
The most shocking fraud statistic? Half of respondents feel it’s a cost they need to budget for, and is considered ‘part and parcel’ of doing business. Is this the right approach to payment fraud? The fraudsters certainly hope so.
Focusing on the next 12-months, it’s important to understand the priorities for financial decision-makers. What’s the reason behind the large drop in compliance this year? Is it because there’s no urgency in these new payment initiatives, or because they don’t understand the benefits?
Changing deadlines and delays give companies an excuse not to prepare proactively. But, urgency isn’t the only reason for this drop.
40 – 47% feel unprepared because they aren’t clear on the benefits.
It’s important, however, to strike the right balance between mandatory priorities compared with those that will enhance day-to-day efficiency in the business.
What’s the top priority for your organization and does it align?
89% of businesses continue to pay late. Only 3% down compared to 2019. It’s still too high, especially as we deal with the fallout of a pandemic. Who’s to blame?
Research reveals a significant drop in large organizations paying late to protect their cashflow. This highlights that Duty to Report and Prompt Payment Code legislation is making a difference, but internal AP processes remain a challenge.
What does this mean for your business?
Businesses respond to the environment and challenges in different ways: whilst smaller businesses feel the most vulnerable to changes in the trading environment, larger companies are most weary of regulatory change. How does your thinking compare with your peers?
Read the full 2020 Business Payments Barometer to ensure you’re investing time and money in the right areas. A crucial consideration for survival and success as we emerge from COVID into a ‘new normal’ payments landscape.
The Business Payments Infographic
Highlights this year's stand out results by company size.
What do the experts think of the 2020 Business Payments Barometer?
We’ve seen the results. We’ve now asked the questions; how will this impact your business and what do the results mean?