B2B Payments

Research Finds Paper Billing Still Cost-Effective

The push for businesses to switch to e-invoicing seems to be stronger than ever these days. However, a recent E-Invoicing Platform article discussed a study that proves the worth of paper billing.

According to the news source, a Danish study wanted to find out whether switching to paper invoices with a new population of customers would improve the speed of payment. The results found that 59 percent of customers receiving an invoice via e-mail had to be sent a reminder, while only 29 percent of customers receiving an invoice via mail required a follow-up message. Additionally, the survey showed that new customers pay their required amount significantly later if they receive their invoices by e-mail instead of through the physical mail.

“It cost the company $3.25 per customer to get paid by paper invoice and $5.75 per customer billed by e-mail,” explained the news source. “With every new reminder that had to be sent out, costs increased significantly for those customers needing an extra push to make their payment.”

Would this same scenario hold true in the U.S.? Potentially, but the news source was quick to point out that postage in Denmark is almost twice as much than in the U.S.

“It seems to makes sense to us then that the case becomes even stronger for mailing invoices in the U.S. market where the postage cost is so much lower,” said E-Invoicing Platform.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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