Report: Corporate Mobile Payments Reduce Costs by Up to 20 Percent (Jan. 24. 2013)
Jan. 24, 2013
The rise of corporate mobile payments is leading to some big saving for companies around the globe that are seeing reductions of up to 20 percent on their cash-collection costs, according to a new white paper by Mobile Money Consulting, a London-based advisory firm.
Corporations in emerging markets are seeing the highest savings from mobile payment advances; in some emerging markets, cash accounts for up to 75 percent of corporate receivables, and the added costs of collecting cash for corporate payments can be as much as one-fifth of the amount received after costs, such as invoice delays, transportation, security, and insurance and processing are taken into account. But even in more developed markets, mobile technologies can lead to significant reductions in overhead costs, according to Mobile Money.
Corporate mobile payments also can act as a driver of growth for the larger mobile payments system in a given market. By passing on some of the savings from mobile payments, the paper notes, companies can encourage distributors, merchants and consumers to accept and use mobile, which increases financial inclusion for small businesses and consumers in that market. And it’s not only the private sector that has a role to play; government, development and multilateral agencies should help drive awareness of corporate mobile payments, especially among small businesses, via training and educational programs and knowledge sharing platforms, the report said.