New PayStream report titled The Value of Purchasing Cards reveals the power of P-Cards as a strategic form of payment.
More and more companies are adopting or expanding their Purchasing Card (P-Card) programs in an effort to manage company expenses and maximize savings. P-Cards are a payment tool designed to make the business purchasing process more efficient by reducing paperwork, providing greater control over spending and visibility into spending patterns. Purchasing Cards can reduce the workload for both accounts payable and purchasing departments at essentially no cost to an organization. In addition, P-Card purchases simplify the reconciliation process, eliminate out-of-pocket expenses and improve supplier negotiations.
PayStream research indicates that P-Card use is on the rise as more companies transition away from paper checks in an effort to streamline their accounts payable process. PayStream’s most recent survey shows that 64 percent of companies that responded are currently utilizing P-Cards for business purchases, with an additional 6 percent of companies reporting they are currently deploying or have plans to deploy a P-Card program over the next six months.
Key drivers of increased P-Card usage are rebates earned for high volume card use and the convenience of swiping a card over carrying cash and processing a receipt. Most organizations recognize that a large number of check payments are made for low value purchases to a large number of suppliers, which is a costly and inefficient process. When check payments are switched from the traditional process to a Purchasing Card, efficiency savings range from 55 percent to 80 percent of the traditional process cost. Companies are now utilizing Purchasing Cards as a strategic form of payment in AP on higher priced items and business-to-business services. Additional benefits of P-Card usage will continue to help drive this trend upward.
Download a complimentary copy of The Value of Purchasing Cards report and learn how your company can reap the rewards of a Purchasing Card program.