I might be a little too far ahead of the curve here, which definitely wouldn’t be the first time that has happened, but I came across a report today detailing how our use of cash as a means of paying for stuff is falling faster than ever. That triggered a memory in my brain from a discussion that occurred during Wednesday’s webinar on technology about accepting alternative forms of payment, other than a check, debit card, or credit card. While I don’t think the industry is anywhere near on the verge of accepting digital currencies like Bitcoin for unpaid debts, it does beg the question about how prepared is the industry for the digital revolution?
Nobody will argue that the accounts receivable management industry is slow to adopt new technology. But, as Harry Strausser noted in yesterday’s talk-off, the ARM industry has been incredibly adept at adapting to change, such as new laws and regulations. Those two trends are on a collision course, and I wonder if there are enough people in the industry who see it and are getting ready for it.
Check and cash accounted for 26% of all payments in 2020, according to a published report, representing the lowest marketshare that those two forms of payments have ever had. When looking at the dollar volume of all payments, cash accounted for just 6%, down from 14% in 2012.
Payments is just one battleground that the ARM industry is going to have to be ready for consumer demand to shift, if companies aren’t seeing it already. Companies cite consumer preference to communicate via email and text as proof that they should be using it, but one vendor in the industry estimated that less than 10% of companies are currently using either communication channel.
During Wednesday’s webinar, Michael Meyer from MRS BPO used a strong verb to describe what’s going to happen to companies who aren’t embracing the importance of technology and adapting their operations to meet consumers where they want to be met. Those companies, Meyer said, are going to be “annihilated.” The train is coming. Are you getting on board? Or getting run over by it?
