Pleasanton, CA — March 18, 2003 — Companies looking to automate paper-based payment process and to gain greater visibility into their payments are continuing to sign up with electronic payment networks, according to a new survey by a solution provider in this field.
The survey, by Xign, a provider of electronic invoice and payment solutions for B2B commerce, revealed that the primary motivations driving supplier participation in electronic payment and invoice systems include the desire to replace paper check processes, to gain visibility on payments and to obtain invoice status online.
In conjunction with the survey, Xign today reported that more than 6,500 suppliers are now active in its Xign Payment Services Network (XPSN), an increase of more than 1,000 percent from the previous year.
Xign said that XPSN automates the invoice to payment process, linking buyers and suppliers in a secure, electronic settlement network. With Xign's shared supplier architecture, buyers choosing Xign to automate their accounts payable operations can now settle electronically with more that 6,500 independent suppliers. Additional suppliers need only a Web browser and Internet connection to enroll in the service.
"The inefficiencies of paper-based invoice and payment processes create problems and unnecessary costs for buyers and suppliers alike," said Henry Ijams, founder and managing partner of consultancy PayStream Advisors. "The rapid growth in the Xign supplier network is a strong indication that Xign's solution for accounts payable automation offers recognizable value to suppliers, too."
XPSN suppliers range from small companies of one or two people to Fortune 500 companies, representing a variety of industry segments.
The recently completed survey of XPSN-enrolled suppliers included more than 400 respondents and identified the key motivations that drive supplier participation in electronic payment and invoice systems:
- 97 percent want to replace paper check processes with electronic ones
- 94 percent are looking to gain visibility on payments
- 94 percent want to obtain invoice status online
According to the survey, suppliers realized significant value from the XPSN:
- 95 percent said the self-service online enrollment was easy and intuitive
- 95 percent said that Xign's supplier portal application is valuable to their organization
Kentrox, LLC, a Hillsboro, Ore., manufacturer of high-speed network access solutions, enrolled in the XPSN and achieved benefits by replacing its paper check system. "Xign's ability to simplify reconciliation and dramatically improve cash forecasting makes it a tremendous asset to our business," said Susan Sumrell, Kentrox treasury and financial reporting manager.