PROVIDENCE – Banks may finally be succumbing to the pressure from developments in technology to transition more fully from paper checks to electronic payments, James Gifas, head of RBS Citizens Treasury Solutions said in a press release.
“People have been talking about the demise of checks for years in the payments space, but paper-based payments have been holding on for dear life despite all predictions to the contrary,” said Gifas. “Finally, the ground is shifting. The pain points that have kept companies using checks, long past what many predicted, are now disappearing.”
The cost and complexity of changing to new accounts receivable systems has been an obstacle in changing to electronic payments, Gifas said. But continuing developments in technology have made the transition smoother.
"Payments networks themselves, such as Bottomline Technologies' Paymode-X, have mitigated the corporate burden of onboarding suppliers by assuming the process on their end, and making it easy for companies to enroll,” Gifas said.
"And companies are realizing that they don't have to overhaul their internal operations. They can keep their current invoicing systems – and this is often the most complicated piece of the picture,” he said. “So they don't have to spend money to revamp their invoicing.”
Advantages banks have with electronic payments include reduction in error, fraud and the time needed for funds to clear, Gifas said.