As the need for digital commercial payments continues to increase, APAC businesses must find ways to mitigate fraud for employees and their business expenses

Discover® Global Network, a leading global payment network, released the second portion of its 2024 Payment State of the Union, the most comprehensive study of its kind, with key insights in the commercial payments landscape. This portion of the research study, which is commissioned by Discover Global Network and conducted by 451 Research of S&P Global Market Intelligence, surveyed thousands of decision-makers at corporations and small and medium sized enterprises within APAC and globally to understand their commercial payment priorities, challenges, and future adoption plans. At Global Fintech Fest, Discover Global Network will share further insight into emerging trends from a regional and global perspective. The following results are key takeaways from respondents in the APAC market.

Traditional Payment Methods Remain Prevalent, APAC Businesses are Increasingly Looking to Digitize Their Commercial Payments.

  • Credit cards (61%), ACH/EFT/Wire/Direct debit (54%) and cash (47%) are the most used payment methods for business expenses.
  • (61%) of APAC businesses are actively investing or open to investing in commercial payment solutions.
  • Over the next 12 months, businesses envision increasing the use of digital payment methods for employee business travel (50%), employee compensation (46%) and payments to suppliers (45%)

“While commercial payments are increasingly adopting digital solutions, the transition is not progressing at the same pace as seen in consumer payments due to the complexities of expense management,” said Chris Winter, head of international markets (APAC) at Discover Global Network. “As technology continues to advance across the industry and region, it is important that businesses seek to improve the security of their commercial payments programs to defend against fraudulent activity of all kinds.”

As Payment Approaches are Modernized, APAC Businesses are Prioritizing Expense Management, Strong Security and Fraud Features

  • Expense management tools (47%), providing a greater variety of payment options to business providers (39%), and streamlining account receivable processes (39%) are the most important commercial payment initiatives to APAC businesses.
  • Within commercial payments solutions, the most important features are business travel expense management (92%), strong security features (91%), and fraud prevention services (90%).

Digital Transformation of Commercial Payments is Ongoing, but Challenges Remain

  • Lack of visibility across expense types (35%), difficulties tracking/managing expenses (34%), and waiting on outstanding receivables to make payments (33%) are APAC businesses greatest pain points when making payments and managing expenses.
  • Travel expenses not aligning with in-trip costs (38%), timely reimbursement for employees (38%), and the inability to track, manage, and forecast employee travel (34%) are the most challenging when it comes to managing employee travel expenses.
  • Integrating data from a variety of sources (47%), too much time spent on data cleaning/formatting (47%) and integrating relevant business systems (44%) are the most challenging when managing commercial payments data.

Expense management and business travel are some of the top priorities for APAC businesses; however, these areas present significant challenges.

Virtual Card Numbers (VCN) are Poised for Substantial Growth

  • 53% of APAC businesses don’t currently offer or use VCN and 66% of APAC businesses don’t use VCN to pay for business expenses.
  • VCNs have one of the highest rates of future implementation as (29%) of APAC businesses plan to invest in VCN or are currently in the discovery phase of implementation.
  • Businesses that have implemented VCN have benefitted from improved transaction security and reduced risk (65%), greater business efficiencies (64%), and improved expense reconciliation (59%) the most.

“Virtual card numbers provide businesses with opportunities to enhance their payment capabilities and better serve their business needs and employees. It’s great to see so many businesses looking to adopt VCN solutions,” said Winter. “Whether businesses are exploring VCN for increased security or to improve their expense reconciliation capabilities, Discover Global Network can help businesses of all sizes benefit from our solution.”

Global Fintech Fest

Chris Winter of Discover and 451 Research’s Sophia Furber will host an in-depth mainstage discussion about the dynamic world of commercial payments and findings from the Payments State of the Union.

  • When: Wednesday, August 28 10:50 AM Local Time
  • Where: Jasmine1, Jio World Convention Centre, Mumbai India
  • What: Commercial Payments Progressing Towards a Digital Future: With the rapid evolution of technology, opportunity rises for the commercial payments sector. From enhancing security solutions to improving user experience, the possibilities are endless.

“This year’s survey found interesting trends in the APAC region with businesses underscoring the importance of partnering with financial institutions that prioritize fraud prevention as much as they prioritize innovation. Businesses are aware of the risks if they don’t focus on security,” said Sophia Furber, Research Analyst at 451 Research, part of S&P Global Market Intelligence. “A key consideration for businesses now, and in the future, is partnering with financial institution that is identifying future forward trends while staying committed to security.”

For a deeper dive into these findings, visit (or download) the full study.

Survey Methodology

A global survey of 2,706 director-level or higher respondents across small to medium-sized enterprises and corporations was commissioned by Discover Global Network and conducted by 451 Research, part of S&P Global Market Intelligence, an independent research firm, in Q1 2024. Markets surveyed include Australia, Brazil, Ecuador, India, Japan, South Africa, Spain, UK and the US.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover® card, America's cash rewards pioneer, and offers personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover® Global Network comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

Katie Gaynor +1-513-478-0851 katiegaynor@discover.com @Discover_News

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