Businesses in the United States and Canada have recently declared that using payments automation could reduce their DSO (days sales outstanding) by 22%.
Indeed, organisations have stated that they are facing problems with long wait times to receive payments, which can have a serious impact on their financial health. This also means that they spend more time with fewer funds on hand, making them more vulnerable.
Hence, a report by PYMNTS found out that 94% of businesses have decided to adopt virtual cards to help make their transactions faster, more secure, and more transparent. 22% and 14% of firms that have implemented real-time payment have benefited from their instant payment capabilities and greater flexibility, respectively.
Moreover, more than half of organizations plan to adopt blockchain and AI in the next five years and intend on outsourcing them from thrid=party vendors. Third-party providers are then set to play a key role in driving mid-market innovation in the future.
However, firms face many challenges in adopting these changes, such as high data management costs, regulatory issues, and finding and retaining the right staff.