Feb 04, 2013 Dave King
Mobile transactions and other forms of electronic payments have helped businesses become more efficient during turbulent economic times. With ACH cards and wire transfers, companies can reduce the amount of paper they use while simultaneously streamlining the accounts payable and receivable processes, yielding more cost-effective payments and processing.
While these benefits are widespread, the potential dangers are somewhat imposing, as wire fraud as a result of automated payments going unchecked can result in serious financial losses. On top of this, a business' reputation can be soiled when investors or consumers lose money as a result of negligent or fraudulent payment processing activities.
Mobile payments saving companies money
Mobile Money Consulting recently released the results of its latest study that sought to pinpoint the exact cost-savings businesses experience when switching to electronic payments. According to the news provider, firms can cut the costs of cash sales by roughly 20 percent by using mobile payments technology, while companies in emerging markets should expect to see even greater savings.
The white paper explained that payment processing providers, mobile operators, governments and platform vendors can all expect higher profits as a result of this increased popularity in the coming months and years. The cost of cash collection can be extremely high, especially for businesses in emerging markets, and the use of electronic payment processing can be just the help companies need to boost profits.
The firm explained that cash collections may cost as much as 20 percent of the money collected, and in emerging markets, businesses might be receiving cash for more than 75 percent of all accounts receivable. By making the switch to electronic payments, these companies have a large volume of money that can be saved. The researchers involved with the study believe that companies have the most to gain by switching to electronic payment processing as soon as possible, as early adopters will enjoy the most benefits.
Long-term fraudulent activity in accounts payable and receivable can be devastating to any company, despite the size. Businesses should consider using advanced security software to protect all data and finances, while keeping a close eye on all incoming and outgoing payments, especially those that are carried out regularly in an automated fashion.
By focusing on security, businesses can enjoy all of the benefits of electronic payments while staying safely out of the reach of web-based criminals.