8 Good Reasons Why Checks are Hanging On
An article today in PYMNTS.com called (From Paper ChecksTo Electronic Payments: Eight Questions To Ask) illustrates why converting to a new payment methodology is so challenging. Simply put, it’s an “adoption process”.
Any new product or idea in the market, particularly in today’s fast moving marketplace for businesses and consumers, must have a methodology for an onboarding process which is:
- Easy to implement
- Requires minimal investment
- Limits internal conflict and resource allocation
No matter how strategic one might consider a “paper to electronic” conversion decision, redesigning and re-architecting a major junction like AP just to save .50 on every check doesn’t exactly meet the criteria for adoption listed above.
The article is very informative and highlights the following points:
- Will the electronic workflow process mirror current procedures?
- Does the EAP system facilitate the complete end-to-end process?
- Are full payment details included on each invoice?
- Does it integrate with existing ERP and accounting systems, and how easily?
- Who is responsible for the vendor enablement process?
- Can the EAP provider be trusted to work with vendors on your behalf?
- Is this a partner you can count on for long-term success, beyond the initial sale?
- What rebates or rewards will you receive for participation?
Pretty much the market is trying to get there, but the “benefits” of sending a check still exist… referring to control and working from existing systems. In the long run, making the move to a new platform for AP Automation does make sense. However, in the meantime, the implementation of recognition technologies can streamline existing processes and make the bridge to new platforms easier.
Source: www.pymnts.com