New Visa global cash management survey reveals companies to increase corporate payment card use and decrease cheque use

Companies believe that corporate payment cards will reduce costs and enable greater cash flow management as a result of more transparent financial data for payables and receivables, according to the survey that was commissioned by Visa.

The Visa Global Cash Management Survey examined the use of corporate payment cards on a global basis. The survey was conducted in two phases. Phase I, conducted by Survey.com, a firm specializing in internet market research, involved US-based financial, treasury and cash management executives.

Phase II, conducted by Penn, Schoen & Berland Associates, Inc., a strategic communications and market research firm, involved senior finance and treasury executives in four Visa regions, including Asia Pacific (AP), Central and Eastern Europe, Middle East and Africa (CEMEA), Europe, and Latin America and Caribbean (LAC). Corporate payment cards are payment and expense management solutions with information management services that are designed to help businesses and the public sector achieve cost savings, greater efficiency, control, and convenience.

'This international research shows that corporate payment cards are increasing in popularity as their transparency and information management benefits are becoming better recognized by financial executives around the world,' said Aliza Knox, senior vice president, Visa Commercial, Visa International. 'The research points to a growing industry trend that cheques are declining in popularity because more companies are seeking solutions that optimize payment and expense management to help them make better business decisions.'

Commenting on the survey, Kamran Siddiqi, General Manager for Visa International CEMEA in the Middle East said:

'The findings provide useful insights into the growing commercial sector and will help us to provide innovative and customised payment products which meet the differing needs of the small and medium sized business in this region.'

Siddiqi added, 'We are also excited to learn from the survey results that companies in all markets around the world intend to use corporate payment cards more in the future.'

Visa recently held the 'Small Business Card Marketing Workshop' in Dubai which highlighted the benefits to UAE Banks in offering commercial payment solutions to UAE Banks as part of their commercial banking portfolio. Commercial cards allow banks to expand their product offering and gain access to a new customer segment and increase their retail sales volume.

Intention to Increase Use of Payment Cards
In the US and Europe, more than one in three companies (67 percent), and in AP, LAC, and CEMEA, more than one in four companies (34 percent), plan to increase their use of corporate payment cards in the next 12-18 months.

Improved Efficiency Through Corporate Payment Cards

The most important reason that companies worldwide plan to incorporate corporate payment cards is to reduce the associated administration and processing costs. In addition, companies recognize that electronic payment cards:


•Eliminate paper invoicing and payments

•Ease facilities payables and receivables

•Provide card transaction data for better vendor negotiations

Importance of Financial Transparency Cited

In general, 75 percent of companies recognize that the most important capability of electronic payment methods is to provide easier access to more transparent financial data. Companies ranked online access to payment and invoice-related detail as the second most important electronic payment capability. In addition, companies believe that electronic payments provide:


•Automated information reporting and back-end integration capability

•Ability to process high value payments

•Ability for buyer to control amount and frequency of payments

•Ability for buyer to initiate payments

•Ability for buyer to defer settlement of funds

Reasons for Current Cash Management Inefficiency Vary

Companies view their current cash management process as inefficient, primarily because of labor-intensive administrative work and inadequate information and reporting capabilities.


•In Europe, LAC, and CEMEA, cash positioning and forecasting is seen as the least efficient process.

•In the US and AP, collection and application is seen as the least efficient process.

•In LAC, disbursements are viewed as the least efficient process.

Visa Global Cash Management Survey: Objective and Methodology

The objective of the Visa Global Cash Management Survey was to provide a global view of cash management practices, and gauge the use and perceptions of corporate payment cards worldwide.

The first phase of the survey, conducted by Survey.com, was completed in August 2006, and involved the responses of 400 financial executives and cash managers from across more than 20 industries in the US. The majority of respondents (85 percent) had annual sales of more than US$50 million per year, of which 56 percent represented companies with sales of more than US$500 million annually.

The second phase of the global survey was completed by Penn, Schoen & Berland Associates, Inc. in late February 2007, and included 383 telephone interviews of treasury managers, cash managers, and chief accounting officers and financial managers reporting to chief financial officers. The respondents across four Visa regions were employed by companies with over 100 employees and annual sales of at least US$25 million annually.