Reports show electronic payments on the rise
Jun 10, 2013 Philip Burgess
American businesses are turning to alternative electronic payments to conduct business.
According to the Global Online Payment Methods Report 2013 released by yStats.com, mobile spending is expected to grow significantly in the next few years, with the source stating that Near Field Communication (NFC) payments will account for half of the global mobile payment market by 2017. Across the globe, business to consumer e-commerce expands by 20 percent every year, the source noted in a separate report - the Global B2C E-Commerce and Online Payment Report 2013.
In particular, yStats.com's payment methods report stated that mobile payment platforms will see notable growth in the United States. The trend is a result of more physical storefronts accepting mobile payments.
Last month, a Greenwich Associates report found that a significant portion of U.S. businesses plan to increase electronic payment activity in the coming year. Forty-three percent of small businesses and 55 percent of large companies noted that they expect growth in the amount of electronic commerce they conduct this year.
Alternative payments options - such as ACH cards - are becoming more popular because they are more secure and can help businesses reduce expenses, according to Greenwich Associates officials.
"Companies are motivated by the ability of electronic payments to increase cash flow, improve security and lower costs through enhanced operational efficiencies," said Chuck Rogers, the commercial payments practice leader for Greenwich Associates.
Also, small- and mid-sized companies in the U.S. are starting to explore non-traditional payment services for managing electronic transactions. The report indicated that many firms are unlikely to recommend their primary bank for payment management. About one quarter of American small businesses are unwilling to use payment products from major banks, the source found.
For alternative financial outlets, this is a positive trend. With more small businesses looking to non-traditional services for cash flow and transaction management, emerging electronic payment technologies may increase.