Companies can reduce many of the costs related to cash payments surrounding payroll and supplier payments. In many places companies both large and small are leading the transition to digital payments, as they increasingly recognize the benefits of digital payments, for example:
- Reduced transaction costs, particularly in relation to payroll and supplier payments, which frees up capital for more productive uses like investment and business growth
- Increased transparency and reduced risks of theft and fraud, compared to cash-based payment practices
- Greater inclusion in formal financial systems, leading to more access to capital, new business opportunities, and new markets
The Better Than Cash Alliance helps companies digitize their payments by providing leadership, research, and technical expertise.
Company Transition Success Stories
- In the Philippines, if the corporate sector adopted digital payments instead of checks and cash, it could save nearly half (download Highlights below) of its invoice-handling costs. At the same time, the banking sector could boost net profit by almost 10 per cent. Country Diagnostic - Philippines : Highlights pdf [0.74MB]
- By implementing digital payments, Indian Railways has lowered infrastructure, cash-handling, and staffing costs and cut the time it takes to buy tickets. Indian Railways now sells almost 250,000 tickets online a day, making it the largest eCommerce merchant in India.
- In Kenya, Juhudi Kilimo provides asset financing and technical assistance to rural smallholder farmers and small‐to medium-sized agri‐businesses in Kenya. The organization began using mobile technology to make and collect payments in real-time, substantially cutting transit time and costs with their employees.