Discover® Global Network Study: 91% of Asia-Pacific Businesses Prioritize Fraud Prevention Services, Appeal for Virtual Card Numbers Grows
August 25 2024 - 10:30PM
Business Wire
As the need for digital commercial payments
continues to increase, APAC businesses must find ways to mitigate
fraud for employees and their business expenses
Discover® Global Network, a leading global payment
network, released the second portion of its 2024 Payment State of
the Union, the most comprehensive study of its kind, with key
insights in the commercial payments landscape. This portion of the
research study, which is commissioned by Discover Global Network
and conducted by 451 Research of S&P Global Market
Intelligence, surveyed thousands of decision-makers at corporations
and small and medium sized enterprises within APAC and globally to
understand their commercial payment priorities, challenges, and
future adoption plans. At Global Fintech Fest, Discover Global
Network will share further insight into emerging trends from a
regional and global perspective. The following results are key
takeaways from respondents in the APAC market.
Traditional Payment Methods Remain Prevalent, APAC Businesses
are Increasingly Looking to Digitize Their Commercial Payments.
- Credit cards (61%), ACH/EFT/Wire/Direct debit (54%) and cash
(47%) are the most used payment methods for business expenses.
- (61%) of APAC businesses are actively investing or open to
investing in commercial payment solutions.
- Over the next 12 months, businesses envision increasing the use
of digital payment methods for employee business travel (50%),
employee compensation (46%) and payments to suppliers (45%)
“While commercial payments are increasingly adopting digital
solutions, the transition is not progressing at the same pace as
seen in consumer payments due to the complexities of expense
management,” said Chris Winter, head of international markets
(APAC) at Discover Global Network. “As technology continues to
advance across the industry and region, it is important that
businesses seek to improve the security of their commercial
payments programs to defend against fraudulent activity of all
kinds.”
As Payment Approaches are Modernized, APAC Businesses are
Prioritizing Expense Management, Strong Security and Fraud
Features
- Expense management tools (47%), providing a greater variety of
payment options to business providers (39%), and streamlining
account receivable processes (39%) are the most important
commercial payment initiatives to APAC businesses.
- Within commercial payments solutions, the most important
features are business travel expense management (92%), strong
security features (91%), and fraud prevention services (90%).
Digital Transformation of Commercial Payments is Ongoing, but
Challenges Remain
- Lack of visibility across expense types (35%), difficulties
tracking/managing expenses (34%), and waiting on outstanding
receivables to make payments (33%) are APAC businesses greatest
pain points when making payments and managing expenses.
- Travel expenses not aligning with in-trip costs (38%), timely
reimbursement for employees (38%), and the inability to track,
manage, and forecast employee travel (34%) are the most challenging
when it comes to managing employee travel expenses.
- Integrating data from a variety of sources (47%), too much time
spent on data cleaning/formatting (47%) and integrating relevant
business systems (44%) are the most challenging when managing
commercial payments data.
Expense management and business travel are some of the top
priorities for APAC businesses; however, these areas present
significant challenges.
Virtual Card Numbers (VCN) are Poised for Substantial Growth
- 53% of APAC businesses don’t currently offer or use VCN and 66%
of APAC businesses don’t use VCN to pay for business expenses.
- VCNs have one of the highest rates of future implementation as
(29%) of APAC businesses plan to invest in VCN or are currently in
the discovery phase of implementation.
- Businesses that have implemented VCN have benefitted from
improved transaction security and reduced risk (65%), greater
business efficiencies (64%), and improved expense reconciliation
(59%) the most.
“Virtual card numbers provide businesses with opportunities to
enhance their payment capabilities and better serve their business
needs and employees. It’s great to see so many businesses looking
to adopt VCN solutions,” said Winter. “Whether businesses are
exploring VCN for increased security or to improve their expense
reconciliation capabilities, Discover Global Network can help
businesses of all sizes benefit from our solution.”
Global Fintech Fest
Chris Winter of Discover and 451 Research’s Sophia Furber will
host an in-depth mainstage discussion about the dynamic world of
commercial payments and findings from the Payments State of the
Union.
- When: Wednesday, August 28 10:50 AM Local Time
- Where: Jasmine1, Jio World Convention Centre, Mumbai
India
- What: Commercial Payments Progressing Towards a Digital
Future: With the rapid evolution of technology, opportunity rises
for the commercial payments sector. From enhancing security
solutions to improving user experience, the possibilities are
endless.
“This year’s survey found interesting trends in the APAC region
with businesses underscoring the importance of partnering with
financial institutions that prioritize fraud prevention as much as
they prioritize innovation. Businesses are aware of the risks if
they don’t focus on security,” said Sophia Furber, Research Analyst
at 451 Research, part of S&P Global Market Intelligence. “A key
consideration for businesses now, and in the future, is partnering
with financial institution that is identifying future forward
trends while staying committed to security.”
For a deeper dive into these findings, visit (or download) the
full study.
Survey Methodology
A global survey of 2,706 director-level or higher respondents
across small to medium-sized enterprises and corporations was
commissioned by Discover Global Network and conducted by 451
Research, part of S&P Global Market Intelligence, an
independent research firm, in Q1 2024. Markets surveyed include
Australia, Brazil, Ecuador, India, Japan, South Africa, Spain, UK
and the US.
About Discover
Discover Financial Services (NYSE: DFS) is a digital banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover® card, America's cash rewards
pioneer, and offers personal loans, home loans, checking and
savings accounts and certificates of deposit through its banking
business. It operates the Discover® Global Network comprised of
Discover Network, with millions of merchants and cash access
locations; PULSE®, one of the nation's leading ATM/debit networks;
and Diners Club International®, a global payments network with
acceptance around the world. For more information, visit
www.discover.com/company.
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Katie Gaynor +1-513-478-0851 katiegaynor@discover.com
@Discover_News
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