One-Third of High-Volume AP Departments See Current Systems as Barrier to Growth

Nearly all “mass payout” companies believe that their accounts payable (AP) systems’ inability to handle volume is preventing them from growing.

That’s one of the findings of “High-Volume Accounts Payable,” a PYMNTS and Routable collaboration based on a survey of 204 executives from mass payout companies with annual sales ranging from less than $10 million to more than $250 million.

Get the report: High-Volume Accounts Payable

Mass payout companies make large numbers of small-dollar-value payments each month. Four categories of these companies were included in the survey: virtual events management; transportation, logistics and shipping; online marketplace, and gig economy.

The survey found that 98% of the executives say their companies are experiencing at least some growth inhibition, with 31% saying they are “very” or “extremely” inhibited.

The more inhibited they feel, the more likely they are to be innovating or planning to innovate their automated systems.

Among the executives who say their companies’ growth is “very” or “extremely” inhibited by their AP systems, about 69% are either currently innovating or plan to do so within the next year. Eleven percent are currently innovating, 31% will start innovating in the next six months and 27% will start innovating in the next 12 months.

Among those who say their companies’ growth is “slightly” or “somewhat” inhibited, just 23% are either currently innovating or plan to do so within the next year. Only 2% are currently innovating, while 7% will start innovating in the next six months and 14% will start innovating in the next 12 months.

Among the executives who say their companies’ growth is not inhibited by their AP systems, none plan to innovate within the next year. In fact, 40% decided not to innovate in the next three years and 60% have not decided if they will or will not innovate.