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A clear case for electronic payments

Dec 17, 2019 Dave King

North American nations, as well as those in Europe and Asia, are beginning to become more aggressive with electronic payments, especially as the trend has been found to streamline accounting. Organizations in the public and private sectors have revolutionized the ways in which accounts payable and receivable operate, while security remains a major pressure point.

The advantages of this technology are sometimes clearest when evaluating their worth on a smaller scale, such as within emerging markets. CNN Money recently reported that the Mexican government has already saved $1 billion since switching many payment systems to digital environments, and that this transition has had a profound and immediate impact on the general economic environment in the nation.

According to the news provider, the choice to switch to electronic payment systems in Mexico has helped to establish a more adequate digital infrastructure which is expected to stimulate modernized banking and financial services growth. The source explained that the Gates Foundation's Better Than Cash Alliance conducted a study and released the findings that revealed that the Mexican government is saving $1.27 billion annually.

This is not the first time a government has improved its financial efficiency through the use of technology, as officials in Washington have been aggressively deploying new digital offerings and letting go of clandestine processes. CNN Money added that roughly one-quarter of Mexican adults currently have a bank account, and electronic payments can help to decrease the under and unbanked populations.

In the United States, electronic payments have helped to increase interest in traditional financial services among the large populations of unbanked and underbanked households. Businesses in North America and abroad will likely continue to experience positive outcomes following more widespread adoption and deployment of electronic payments capabilities.