White Paper: Mobile Advantageous for Corporate Payments
Jan. 24, 2013
While mobile payment solutions have been directed mainly at consumers, a new white paper suggests the technology could be leveraged by corporations to reduce their cost of cash sales up to 20 percent. London-based Mobile Money Consulting said factoring in the cost of collection, transportation, securing, insuring, manual reconciliation and any time delays that result, the cost of cash collection is significant for many businesses. According to Killian Clifford, director of Mobile Money Consulting, the cost of cash collection in emerging markets can be as much as 20 percent of the amount collected. Even in more developed markets, Killian said, the cost can be between 5-10 percent. Corporate mobile payments can eliminate these inefficiencies and make substantial cost savings to be passed on to consumers and shareholders.
“Large corporates in developing countries often feel that their revenues are exposed through the costs and risks of handling cash,” said Mike Ritchie-Cox, head of consumer goods industry at Vodafone Global Enterprise, in the white paper. “Mobile payments solutions can significantly mitigate the risks and successful services like those in East Africa enable funds to be transferred securely, simply and in real-time, between consumers and businesses of different sizes. Entire value chains can be made more efficient. The risk of fraud, theft and loss reduces significantly when payments are made or collected via mobile. Staff safety is increased and the costs of handling cash (including security costs) significantly diminish.
Download the free white paper.