Press Release
New VICOR Corporate Payments Index Projects
15 Percent Growth in Electronic B2B Transactions by
2008
Contact: Sam Baumgarten
Phone: 678-533-4861
Metavante Corporation
sam.baumgarten@metavante.com
RICHMOND, Calif., Oct. 2, 2006 – The corporate
payment industry is rapidly moving toward electronic
processing of business-to-business transactions. That’s
the findings of the first-annual Corporate Payment Progress
Index (CPPI) created by VICOR Inc., a leading provider
of corporate payment-processing software. VICOR is part
of the Metavante Commercial Treasury Solutions division.
The CPPI is the first and only industry metric that
quantitatively tracks and measures the overall progression
of corporate payments. The inaugural 2006 CPPI stands
at 55 on a 0-100 scale. That level indicates a generally
satisfied corporate payments environment with transaction
costs under control and investment in payment systems
evenly distributed among the four major payment methods:
electronic-funds transfer, or ACH; check, wire transfer,
and purchasing card. The index indicates that 40 percent
of business-to-business transactions are handled by
electronic-payment systems.
The CPPI also estimates that in 2008, the index will
stand at 65, with ePayments forecast at 55 percent of
B2B transactions. The 65 level indicates the industry
is approaching a major milestone which is characterized
by high satisfaction, low costs and a larger investment
in ePayment systems.
 
“We’ve known for a while that the payments
industry is progressing, but we had no method to determine
where the industry stands today or a method to determine
the direction and rate at which the industry is moving.”
said Robert F. Kirk, VICOR president. “With the
CPPI, we now have vital, quantitative data on the state
and progress of payments to share with such key stakeholders
as financial institutions, technology providers and
corporate payment managers.”
The CPPI uses a sophisticated model that incorporates
three major business drivers: cost per transaction,
ePayment investment plans and satisfaction level. Each
of these three drivers are calculated based upon a weighted
average across the market share of the four major payment
methods.
Among the findings of the inaugural CPPI:
- Major drivers of the 2006 CPPI are the Cost and
Satisfaction Indices – with each contributing
42 percent of the CPPI.
- Major drivers of the 2008e CPPI show a more even
distribution among three sub-indices with:
- Cost at 37 percent
- ePayment Investment at 25 percent, an upward projection
from 16 percent in 2006
- Satisfaction at 38 percent
- As a shift occurs to electronic payments from paper,
check-system investment is expected to decline with
reallocation of capital expenditures to ePayment systems.
- Straight-through processing, or end-to-end automation
of the payments process, is seen as six-to-eight years
away.
The CPPI, conducted with assistance from Celent LLC,
comprises data from more than 200 corporate payment
managers who represent a broad range of industries and
participated in the comprehensive survey.
For those interested in a deeper understanding of the
CPPI, VICOR will present the results and associated
analysis at the AFP Annual Conference in Las Vegas on
Oct. 18, as well as briefings and webinars through the
end of the year. For more information, visit www.vicor.com.
About VICOR
VICOR, a Metavante company, is a leading provider of
solutions that optimize the processing of complex payments
for businesses and financial institutions. By managing
multiple payment types and formats across diverse distribution
channels, VICOR helps businesses and financial institutions
save time and money, attract new customers, generate
revenue, and leverage existing technologies. In 2005,
VICOR’s solutions processed over $1.4 trillion
in payment volume, 222 million payment transactions
and 335 million payment related documents. VICOR owns
and manages the Corporate Payments Progress Index (CPPI),
an industry initiative that quantitatively measures
the progress of corporate payments. VICOR is headquartered
in Richmond, Calif. For more information about VICOR
and its solutions, contact 510-621-2000 or visit www.vicor.com.
Metavante Corporation delivers banking and payments
technologies to financial services firms and businesses
worldwide. Metavante products and services drive account
processing for deposit, loan and trust systems, image-based
and conventional check processing, electronic funds
transfer, consumer healthcare payments, and electronic
presentment and payment. Headquartered in Milwaukee,
Metavante (www.metavante.com) is wholly owned by Marshall
& Ilsley Corporation (NYSE: MI).
Metavante and VICOR are registered trademarks of
Metavante Corporation.
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