Last Updated on Wednesday, 26 May, 2021 at 10:28 am by Andre Camilleri
A world-disruptive pandemic, rapid changes in consumer behaviour, lower margins and economic storms have exerted pressure on local businesses to re-think their strategic models and operational processes. Moreover, the significant growth in digital buyers during the pandemic turbocharged companies’ digital plans, particularly in the payments sphere.
Bank of Valletta saw nearly 40% increase in local businesses shifting to its digital batch-payments system, compared to the same period last year. “Over these past months, we’ve seen a drastic move towards digital payments by companies of all sizes, from small family business to large corporates. Cheque payments have also decreased by nearly 50% when compared to last year, rapidly taken over by payments over internet banking and other channels,” stated Franco Xuereb, Executive eBanking at BOV.
The business sector has been severely hampered by COVID-19. According to Tonia Naudi, Head Business Payments at Bank of Valletta, forward-looking business operators have moved from the traditional and costlier cash or cheque-based payments into more efficient and cheaper digital payments. In a scenario where cost management is crucial for sound business profitability, embracing digital payment solutions can translate in augmented cost-effectiveness, speed and efficiency.
“Habitual use of traditional payment methods may give the perception of convenience, and until companies switch, the hidden costs of cash and cheques borne by such companies are rarely calculated,” explained Naudi. “Let’s say a company with 50 employees shifts its monthly salary payments from cheques to digital payments. Cheque payments would cost the company €600, whereas through the BOV Batch-Payments, it would incur just €72 – that’s a cost saving of €528. And this without taking into account slow payment turnaround, security risks, errors from manual intervention, storage space requirements and manual recording, filing and reconciliation of accounts.”
Through the BOV Batch-Payments, supplier payments and salaries are batched into one file by the company issuing payments and uploaded as a single file on the BOV Internet Banking. BOV to BOV payments are instant, whereas payments to beneficiaries whose account is held by other banks are carried out within 24 hours. Bank of Valletta has a wide range of options for B2B payments and payments to and from other parties such as employees and customers. Additional solutions include contactless EPOS terminals, internet and mobile banking and mobile to mobile payments. All digital services come at a competitively priced structure to encourage a business digital plunge.
Businesses targeting a more efficient and cheaper payment strategy can reach out to a BOV Payments specialist on email@example.com or can apply online through https://www.bov.com/content/salaries-and-batch-payments-main. Further information can also be found on https://www.bov.com/Business.