PayStream today released the 2013 Purchasing Cards: Working to Simplify the Procure-to-Pay Process report, which reveals that Purchasing Card usage is on the rise – up 5 percent, from 64 percent in 2012 to 69 percent in 2013.

Key drivers of increased P-Card usage is the convenience of swiping a card over carrying cash and processing a receipt, rebates earned for high volume card use, incentives from P-Card issuers and lower processing costs.  In an effort to reduce processing costs, more organizations are migrating away from paper-based check processing to P-Card transactions.  When check payments are switched from the traditional purchase order driven acquisition process to a Purchasing Card, there is a cost savings of $74 per transaction.  This can translate to a considerable reduction in processing costs when used to purchase more goods and services.

PayStream partnered with NAPCP, the Professional Association for the Commercial Card and Payment Industry on the report.  The report provides a comprehensive look into Purchasing Card trends, as identified by over 200 finance and procurement professionals.  The report covers different types of Purchasing Cards, including Corporate Card, One Card, Fleet Card, Ghost Card, Virtual Card, and Single-Use Card.  In addition to Purchasing Card products, this report includes Purchasing Card solutions offered by Bank of America Merrill Lynch and U.S. Bank.

Key findings in the report include:

• P-Card usage increased 5 percent, from 64 percent in 2012 to 69 percent in 2013.
• The number of companies that do not use P-Cards and have no plans to implement a P-Card program decreased from 31 percent in 2012 to 22 percent in 2013.
• More companies are paying for higher ticket priced items with P-Cards.  Forty percent of survey respondents report the average value of transactions processed using P-Cards is between $251-$1000, up from 33 percent in 2012.
• The top benefit of P-Card programs is increased convenience to employees (75 percent), followed by rebates and incentives from P-Card issues at 63 percent.
• The primary reason organizations do not use P-Cards is internal resistance to change (26 percent).
• The top mechanism organizations employ to protect against P-Card fraud and misuse is the requirement of receipts for purchases (83 percent).
• The number one factor driving organizations to focus on electronic payments, including P-cards is reducing overall payment costs (84 percent).
• The number one step organizations are taking to increase P-Card usage is improved internal education on P-Card programs.

A full copy of the 2013 Purchasing Cards: Working to Simplify the Procure-to-Pay Process report can be downloaded for free HERE.  Download your complimentary copy today.