Wadih founded both PairSoft and PaperSave. He is an avid technologist who specializes in streamlining operations and maximizing productivity.View all posts by Wadih Pazos
Wadih Pazos • April 20, 2015
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Retailers, banks, and corporations have yet to fully embrace the new technology for security reasons. In many cases, neglecting to be proactive has hurt these organizations in terms of revenue.
ITProPortal warned that retailers that neglect to get on board with e-payments will pay for it—no pun intended. Concerns over transaction security have kept some businesses from providing fluid payment systems.
However, this causes them to lose sales without even realizing it; many consumers will abandon an order due to complications surrounding the checkout process, the source reported. These companies are unwittingly narrowing their customer bases by succumbing to apprehension, and creating a barrier that could cost them significant amounts of revenue.
E-payments help streamline B2C activity, so investing in new software is a good way to enhance efficiency and sales. However, a white paper by the Payments Innovation Alliance, entitled “The Future of Corporate Payments,” found that just 37 percent of lower-end middle market businesses use mobile banking and payment.
Meanwhile, a larger, but still not dominant, 55 percent of large, middle market businesses used these services. The industry certainly appears to be trending among companies, but it’s not common practice quite yet.
Banks have seen a new, unexpected form of competition arise, Payments Innovation Alliance noted. Flexible payment processors that provide increased efficiency for B2B transactions are challenging banks in the corporate realm. And while some have embraced the modern era of e-invoicing and mobile payments, in many cases, potential security issues have hindered development.
Payments Innovation Alliance found that while mobile banking exists in the form of check deposits and account statements, banks currently do not offer services in the form of accounts payment, foreign market exchange, or capital markets trading.
All of these are accessible on the Internet or by using tablets. The white paper suggested that real-time payment platforms, which allow for simpler processes, greater transparency, and a reduction in the cost of cash and check processing, can help streamline invoicing and payments and thereby offer companies improved efficiency.
ITProPortal recognized that caution among business owners is understandable with regard to switching from traditional billing systems to electronic ones. But the source also argued that making the transition can improve business growth and brand reputation.
By establishing yourself as an organization that embraces change and modern technological advances, you appear more credible and knowledgeable than other competitors. The source asserted that a complex, out-of-date online checkout system is a turnoff for 42 percent of international consumers. By focusing more on security and not the simplicity of the transaction, companies are impeding their own abilities to grow.
We are moving toward a world where e-invoicing is the norm, but for now, it remains difficult to convince retailers, banks, and corporations to make the leap due to security concerns.
As software continues to be developed and expanded, it is likely that these concerns will be alleviated, paving the way for mobile and online payments to become standard practice.