Payments Pulse Data Payments Trends Survey Results - Part I
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Payments Pulse DataPayments Trends Survey Results - Part I
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TABLE OF CONTENTS
I. Methodology and Sample Characteristics ...........................................3
II. Survey Highlights ............................................................................4
III. Graphs and Tables ..........................................................................6
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METHODOLOGY AND SAMPLE CHARACTERISTICS
Zogby Analytics was commissioned by WEX Inc to conduct an online survey of 500 CFOs nationwide.
Using internal and trusted interactive partner resources, thousands of adults were randomly invited to par-ticipate in this interactive survey. Each invitation was password coded and secured so that each respondent could only access the survey one time.
Based on a confidence interval of 95%, the margin of error for 500 is +/- 4.4 percentage points. This means that all other things being equal, if the identical survey was repeated, its confidence intervals would contain the true value of parameters 95 times out of 100.
Subsets of the data have a larger margin of error than the whole data set. As a rule we do not rely on the validity of very small subsets of the data, especially sets smaller than 50-75 respondents. At that subset we can make estimations based on the data, but in these cases the data is more qualitative than quantitative.
Additional factors can create error, such as question wording and question order.
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The firm conducts multi-phased opinion research engagements for banking and financial services institu-tions, insurance companies, hospitals and medical centers, retailers and developers, religious institutions, cultural organizations, colleges and universities, IT companies and Federal agencies. Zogby’s dedication and commitment to excellence and accuracy are reflected in its state-of-the-art opinion research capabilities and objective analysis and consultation.
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SURVEY HIGHLIGHTSCurrent payments processing practices of surveyed companies
• Almost three-fourths (72%) of surveyed companies have an electronic payables initiative underway and, of those considering one (26%), 93% are working to launch an electronic payables paperless strategy in the next 6-12 months. Larger companies are more likely to have electronic payable initiatives underway.
• These decisions are motivated primarily by process improvement (82%), reducing operational costs (70%) and environmental concerns (70%) as well as security (64%).
• Almost all surveyed businesses either currently use outsourced platforms or technologies to perform account payables (57%), or plan to do so in the next 6-12 months (28%).
• Almost all surveyed businesses would consider a vendor outside of their current bank or financial insitutions to help with payments: 52% are very likely and 38% are somewhat likely to consider an outside vendor.
• Payments platform selection is most influenced by overall user experience (71%), reporting analytics (60%) and speed of reconciliation capabilities (60%). Vendor status within the industry (51%) and practical usage of AI/Machine-based learning and advanced business intelligence are of medium importance (40%), while AR/VR is a major factor for only 18% of surveyed CFOs.
Viewpoints on disruptive technologies
• Almost all surveyed CFOs are confident (61% extremely confident and another 35% somewhat confident) in their understanding of the function and capabilities of blockchain and distributed ledger technologies. Large companies’ (annual revenue >$51m) CFOs are even more confident in their understanding of blockchain and distributed ledger technologies, with over 70% saying they are ‘extremely confident’.
• Half of CFOs expect blockchain or distributed ledger technologies to change how their accounts payable operate in the next 6-12 moths and another 44% believe it will allow their business to scale more quickly and interna-tionally.
• Mobile capabilities to manage and approve payments (55%), mobile payments (55%) and blockchain (54%) are considered to be very important by most CFOs.
• CFOs from larger companies (annual revenue >$51 million) are more likely to believe that augmented/virtual reality and machine-based learning will be very important in the next two years.
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Payment processing companies are seen as the leader in the field
• Payment processing companies are considered most likely to disrupt the payments industry in the next 12-24 months (39%), followed closely by big banks (32%).
• Fintech startups are considered most likely to disrupt payments industry by 16% of surveyed CFOs.
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What is your company’s annual revenue?
More than $100M
15%
$5M - $25M
41%
$26M - $50M
23%
$51M - $100M
21%
Which of the following best describes the number of employees in your company?
More than 1000
22%
100 - 499
44%
500 - 1000
34%
West
What region is your company located in ?
26%East30%
Central GreatLakes18% South
26%
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INDUSTRY FREQUENCY
Agriculture 8
Automobile/Transportation 15
Academia 5
Biotech/Pharmaceuticals 11
Electronics 22
Finance/Banking 71
Healthcare 32
Government 10
Hospitality/ Food and Beverage 9
IT - Hardware 40
IT - Software 71
Infrastructure/ Construction 33
Legal 9
Manufacturing 61
Media/ Entertainment 5
Real Estate 11
Retail 32
Security 2
Technology 42
Utilities 4
Other 7
What industry is your company in?
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Which scenario more likely applies?
We are working to launch anelectronic payables paperless
strategy in the next 6-12 months
We are working to launch anelectronic payables paperlessstrategy in the next 1-3 years
93%
7%
Not considering one
Does your business have an electronic payablesinitiative underway or are you considering one?
1%Not sure
1%
Considering one26%
Payables initiative underway
72%
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What is motivating this decision? (Select all that apply)
Environmental concerns
Process improvement
Reduce operational costs
Security
Other
70%
70%
82%
64%
1%
How do you expect blockchain or distributed ledger technologies to impact your business in the next 6-12 months?
It will change how our accounts payable operates
It will allow our business to scale more quickly and internationally
It will not affect our business
It has already affected our business
50%
44%
5%
1%
10
Not sure0%1%
3%
35%61%
How confident or not confident are you in yourunderstanding of the function and capabilities of
blockchain or distributed ledger technologies?
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Which industry do you think will be the firstto successfully implement blockchain?
Retail 20%
8%
12%
Real Estate
Insurance
Travel
Healthcare
Media
Finance/ Banking
Not Sure
Other
4%
9%
4%
40%
3%
0%
12
Not too important
3%
Not at all important
3%Not sure
0%
Somewhat important
30%Very important
64%
How important or not important is the capabilityto transact in international currencies to your business?
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Does your business currently use outsourcedplatforms(s) or technology to perform accounts payable?
Yes
We will begin outsourcing AP in the next 6 - 12 months
We are discussing internally and aim to make a strategic decision
on outsourcing in the next 12 - 24 months
57%
28%
9%
What current payment processing options is yourbusiness using? (Select all that apply)
Check
ACH
Virtual Card
Mobile Payments
79%
52%
63%
68%
47%Wire Payments
No plans 6%
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Not at all likely2%
Not sure1%
Not toolikely
6%
Somewhat likely
38%
Very likely
52%
On a scale of 1 to 5 with 1 being strongly disagree, 3 being neutral, and 5 being strongly agree, do you agree or disagree with the
following statements
5 - Strongly agree
2 - Somewhat disagree
4 - Somewhat agree
1 - Strongly disagree
3 - Neutral
Not sure
Payments providers should do more to offer you innovative tech-
nology (e.g., flexible user interface, seamless API, advanced analytics,
reporting, etc.)?
47% 30% 10%6% 7%
Consumer behaviors strongly influence business use of payment innovators (e.g., mobile payments,
peer-to-peer payments, etc.)
48% 29% 10% 3 8%
How likely or not likely is your business to consider a vendor outside of your current bank or financial institution to help with payments?
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Which group within the marketplace do you think is most likely to disrupt the payments industry in the next 12-24 months?
Fintech startups
Big banks
Payment processing companies
Collaboration between smaller and larger firms
Not sure
16%
32%
39%
8%
5%
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Which industry in the most innovative with respect to payments?
Retail 20%
8%
10%
Real Estate
Insurance
Travel
Healthcare
Media
Finance/ Banking
Not Sure
Other
10%
6%
7%
36%
3%
0%
17
Does your business use cloud payments(Software as a Service to execute payments)?
Yes
We intend to implement acloud based system in the next
6-12 months
We are discussing internally andaim to make a strategic decision on using cloud payments in the next
12-24 months
No plans
57%
29%
8%
5%
Which of the following most influences yourpayments platform selection? (Select all that apply)
Overall user experience
Reporting analytics
Vendor status within the industry
Speed of reconcilliation capabilities
71%
60%
51%
40%Practical usage of AI (Artificial Intelligence) / Machine-Based
Learning and advanced business intelligence
AR/VR (Augmented/Virtual Reality)
60%
18%
Other 0%
18
Strongly disagree
2%Somewhat disagree
7%
Not sure
2%
Somewhat agree
42%
Strongly agree
Which of the following most influences yourpayments platform selection? (Select all that apply)
Cost/ fee structure
Service (e.g., responsive account team, knowledgeable IT support, etc)
Security of systems and transactions
Ability to consistently manage and execute new innovations
62%
62%
68%
21%Ability to remain compliant with industry regulations
Not sure
34%
2%
Agree or disagree with the following statement:I trust a cloud based system to keep AP secure more than
a locally hosted Enterprise Resource Planning System
46%
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How important do you think the followingtechnology will be to your business in the next 2 years?
5 - Very important
2 - Not too important
4 - Somewhat important
1 - Not at all important
3 - Neutral
Not sure
Blockchain
37% 37% 17%5 2
54% 29% 11%
Cloud payments
AR/VR(Augmented/Virtual Reality)
Artificial Intelligence / Machine-Based Learning
Data mining/ business intelligence
Mobile payments
Mobile capabilities to manage, approve payments
2 31
48% 35% 12%3 1
2
40%
55% 30% 11%2 2
37% 15%4 23
46% 38% 12%311
55% 32% 9%2 2
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Which of the following aspects of accounts payableare the most important to your suppliers? (Select up to 3)
Data associated with payments
Speed of payments
Security of payments
34%
Cost of acceptance
Guaranteed payment
Not sure
42%68%
74%28%
1
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How important are the following attributes of a payments provider?
5 - Very important
2 - Not too important
4 - Somewhat important
1 - Not at all important
3 - Neutral
Not sure
Customer Service
51% 38% 7%
69% 20% 8%
Knowledgeable IT
Fees/ revenue share
Security
Innovativeness
1 3
58% 31% 8%1
67% 23% 7%
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55% 31% 11%1
11
111
21
Strongly disagree
2%Not sure
1%Somewhat disagree
5%
Somewhat agree
31% Strongly agree
Agree or disagree with the following statement:Maintaining a postive relationship with my suppliers
is equally as important as implementing new technologies
61%
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How important are the following aspects of payments to your business?
5 - Very important
2 - Not too important
4 - Somewhat important
1 - Not at all important
3 - Neutral
Not sure
Mobile payments 59% 28% 9%
Surcharges
Currency fluctuations
2 2
48% 36% 10%133
40% 42% 14%22
Security of Transactions 71% 20% 6%11
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Submitted to:WEX IncHavas PR
Submitted by:Zogby Analytics
Jonathan Zogby – Chief Executive OfficerChad Bohnert – Chief Marketing Officer
Marc Penz – Systems AdministratorZeljka Buturovic – Survey Statistician
June 2017
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