July 20178 In today's digital economy, cash and checks seem archaic next to electronic payments. Thanks to rapid advancements, digital payments have streamlined the transaction process, greatly improving payment safety and security while also providing a frictionless experience across multiple stakeholders and multi-networks in ways that cash simply can't.While some business owners may think these benefits are `good-to-have' instead of `must-have', the key advantage electronic payments have over traditional payments is that they ultimately save money. Findings from a Bank of America Merrill Lynch study reported that processing a single traditional purchase order would cost US $71 more on average than processing a commercial card. Eliminating cash, results in a significant reduction of business operation expenses in the long term. Compared to digital payments, cash-based payment methods are more vulnerable to fraudulent transactions due to the difficulties businesses have in tracking them. Given such challenges, businesses also distance themselves from opportunities to the potential scale and growth that digital payments provide. Despite the benefits, businesses in Asia have been slow to adopt B2B payments. Findings from a global study by consulting firm McKinsey & Company revealed that more than 90 percent of organizations in Asia Pacific continue to use cash when making B2B payments. To help businesses realize the promise of digital payments and outline the key steps needed for businesses to transit from traditional payments electronic ones, we look at the challenges that are hindering the adoption of B2B payment methods, and examine a recent case study on a multi-national supply packing services firm. What's Holding Businesses Back?A key reason for business's attachment to cash is acceptance. With 85 percent of the world's transac-IN MY VIEWBY PHILIP GLICKMAN, REGIONAL HEAD, COMMERCIAL PAYMENT SOLUTIONS, ASIA PACIFIC, MASTERCARDThe Cost of Cash to BusinessesPhilip Glickman
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