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Capgemini Invent and LexisNexis® Risk Solutions Explore the Evolution of Corporate Payments in the Digital Economy with New Research

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DigitalCFO Newsroom | 23 May 2022

Report Delivers an Expansive View of the Corporate Account-to-Account Payment Market Based on Insights from Payment Executives at Large and Multinational Corporations.

LexisNexis® Risk Solutions and Capgemini Invent released findings from their inaugural LexisNexis® Risk Solutions Corporate Digital Payments Study. The organizations jointly conducted global market research on corporate account-to-account (A2A) payments with three objectives:

1) to evaluate the status of A2A payments for large multinational corporations;

2) to assess key priorities for payment executives to transform their payment function; and

3) to identify key trends that are reshaping the corporate A2A payment market for years to come.

The LexisNexis Risk Solutions Corporate Digital Payments Study covers the United States, Canada, Europe, the Middle East and Asia-Pacific regions. Findings are mostly based on insights from a survey of 400 payment managers, focus interviews with payment executives of large and multinational corporations, and insights from knowledgeable subject matter experts from LexisNexis Risk Solutions and Capgemini Invent who provided views on the market.

Digital acceleration continues to fuel the rapid adoption of digital corporate payments. Corporate non-cash payments represented around 133 billion transactions in 2021, totaling 13% of all non- cash payments. A2A payment solutions are the preferred choice for corporate payments processing with more than 50% of both accounts payables and accounts receivables handled via A2A solutions globally and 40% of corporate payments processed fully automatically. As such, annual corporate non-cash payments are predicted to reach the 200 billion transactions mark by 2025.

“Payment operations leaders are increasingly taking more strategic seats at their organizations. They are transitioning their departments from being cost centers to becoming key creators of customer value. They are achieving this by adopting payment automation technology,” said Andrew Burlison, head of payments, LexisNexis Risk Solutions. “The increased level of automation is enabling payment managers to focus more on payment strategy and business development.

Defining a payment strategy, improving business performance and optimizing costs are priorities that come before payment execution. Leveraging third-party capabilities is key to accelerate the development of state-of-the-art payments operations and optimize solution investment.”

Key Findings from the LexisNexis Risk Solutions Corporate Digital Payments Study:

  • Corporate digital payments are showing significant growth in recent years, fueled by corporations going digital during the pandemic and the ongoing standardization of international payments. Growth rates in the corporate payment segment are equally distributed across regions except North America, which has a lower forecasted growth rate of 6.7% CAGR due to its significant share of paper and offline-based payment transactions, which takes time to transition into digital payment means.
  • Europe is the most advanced region for A2A payments, which are already the standard way of exchanging value among corporations. While Canada closely mirrors European digital maturity levels, the U.S. is lagging, with a large share of checks and non-digital payments still in use, even though the pandemic has significantly accelerated the shift towards digital payment solutions. North America and Europe together account for two-thirds of worldwide corporate non-cash payments volume.

Asia has a very scattered landscape, with advanced payment markers (e.g., China, Singapore and Hong Kong), while cash and non-digital payments remain important in other countries in the region (e.g., Vietnam, Cambodia and Indonesia). A2A payments are the norm in the Middle East where payment infrastructures are efficient.

  • Nearly 60% of corporations rate digital transformation as a key priority for 2022, extending the global trend accelerated by the pandemic. Increasing the share of non-cash payments and developing new services are other corporate objectives with a focus on continuing to reduce payment costs, reducing labor costs and improving automation.

“While corporations have historically been searching primarily for simplicity and cost efficiency, they are now looking at more advanced and valued-added payment solutions, fostered by the rapid development of new technologies and the necessity to go fully digital during the pandemic,” said Thierry Morin, Director, Payments & Financial Services at Capgemini Invent. “Best-in-class corporations are already fully embracing new digital payment ecosystems leveraging cloud payment platforms, real-time data management and end-to-end integration, increasing the gap with the rest of the market. In that context, the race is on in 2022 for payment executives to prioritize the right investments and set up a forward- looking payments platform, addressing the on-going market developments and evolving vendor/client expectations.”

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