The benefits of purchasing card (p-card) programs are redefining the way companies issue payments.The benefits of purchasing card (p-card) programs are redefining the way companies issue payments. According to data collected from the RPMG Purchasing Card Benchmark Survey, purchasing card spend in the U.S. increased from $196 billion in 2011 to $229 billion in 2013. 

Purchasing Cards on the Rise

03.20.14

The benefits of purchasing card (p-card) programs are redefining the way companies issue payments.The benefits of purchasing card (p-card) programs are redefining the way companies issue payments. According to data collected from the RPMG Purchasing Card Benchmark Survey, purchasing card spend in the U.S. increased from $196 billion in 2011 to $229 billion in 2013.

The rise in purchasing card spend by $33 billion from 2011 to 2013 is no surprise considering the evident benefits that are associated with these programs. According to the survey issued by RPMG, employers that utilized a purchasing card program reported a 70 percent reduction in procurement time and an average cost savings of $78 per transaction. This is because companies with a purchasing card program in place are writing fewer checks, which allows quicker payments and more cost savings.

Purchasing cards seem to be the payment vehicle of choice within business-to-business (B2B) payments. According to a 2013 report by PayStream, purchasing card usage continues to increase. There has been a 5 percent increase from 64 percent in 2012 to 69 percent in 2013.

Although purchasing cards were first utilized to eliminate checks for smaller dollar transactions, analysts from the report believe that the trend of purchasing cards is moving in the right direction. Companies are catching on to the benefits of these programs. They are issuing fewer checks and utilizing purchasing cards for small, medium and large transactions.

From the report, large companies (over $2.5 billion) continue to lead small (less than $500 million) and mid-size (less than $2.5 billion) companies in purchasing card programs. Comdata is no stranger to high payment volume or the benefits that come with purchasing cards. According to last month’s Nilson Report, data shows that Comdata ranks as number 14 in purchasing volume in the U.S. with more than double the growth of all of the top companies listed.

Many companies, especially those with high purchasing volumes, are flocking to purchasing card programs as a way to reduce the costs of and streamline their procure-to-pay process.

Last year’s launch of Comdata ConnectPay, an AP automation solution that enables organizations to easily convert their financial systems and payment processes to an electronic payables platform, is an additional way for companies to reduce costs of their procure-to-pay process without losing control. With Comdata ConnectPay, companies are able to reduce costs of their procure-to-pay process by utilizing ConnectPay’s single platform to securely pay vendors, suppliers or individuals from any company location.

In addition, Comdata offers the Comdata Multi-Card MasterCard, which provides companies with a simple p-card program that uses a single card for purchases, travel and entertainment (T&E) and fuel expenses.

Comdata’s Multi-Card MasterCard integrates card activity across various categories, giving business owners a clear overview of company expenses. By utilizing Comdata’s Multi-Card MasterCard companies can streamline their procure-to-pay process and:

  • Save time and money
  • Improve accuracy
  • Lower processing costs
  • Enable tighter controls to help prevent abuse

If you’re interested in learning more about how you can reduce the costs of your procure-to-pay process, contact us today or call 1-800-comdata.