New VICOR Corporate Payments Index Projects 15 Percent Growth in Electronic B2B Transactions by 2008The VICOR Corporate Payment
October 02 2006 - 7:00AM
Business Wire
The corporate payment industry is rapidly moving toward electronic
processing of business-to-business transactions. That�s the
findings of the first-annual Corporate Payment Progress Index
(CPPI) created by VICOR Inc., a leading provider of corporate
payment-processing software. VICOR is part of the Metavante
Commercial Treasury Solutions division. The CPPI is the first and
only industry metric that quantitatively tracks and measures the
overall progression of corporate payments. The inaugural 2006 CPPI
stands at 55 on a 0-100 scale. That level indicates a generally
satisfied corporate payments environment with transaction costs
under control and investment in payment systems evenly distributed
among the four major payment methods: electronic-funds transfer, or
ACH; check, wire transfer, and purchasing card. The index indicates
that 40 percent of business-to-business transactions are handled by
electronic-payment systems. The CPPI also estimates that in 2008,
the index will stand at 65, with ePayments forecast at 55 percent
of B2B transactions. The 65 level indicates the industry is
approaching a major milestone which is characterized by high
satisfaction, low costs and a larger investment in ePayment
systems. �We�ve known for a while that the payments industry is
progressing, but we had no method to determine where the industry
stands today or a method to determine the direction and rate at
which the industry is moving.� said Robert F. Kirk, VICOR
president. �With the CPPI, we now have vital, quantitative data on
the state and progress of payments to share with such key
stakeholders as financial institutions, technology providers and
corporate payment managers.� The CPPI uses a sophisticated model
that incorporates three major business drivers: cost per
transaction, ePayment investment plans and satisfaction level. Each
of these three drivers are calculated based upon a weighted average
across the market share of the four major payment methods. Among
the findings of the inaugural CPPI: --� Major drivers of the 2006
CPPI are the Cost and Satisfaction Indices - with each contributing
42 percent of the CPPI. --� Major drivers of the 2008e CPPI show a
more even distribution among three sub-indices with: --� Cost at 37
percent --� ePayment Investment at 25 percent, an upward projection
from 16 percent in 2006 --� Satisfaction at 38 percent --� As a
shift occurs to electronic payments from paper, check-system
investment is expected to decline with reallocation of capital
expenditures to ePayment systems. --� Straight-through processing,
or end-to-end automation of the payments process, is seen as
six-to-eight years away. The CPPI, conducted with assistance from
Celent LLC, comprises data from more than 200 corporate payment
managers who represent a broad range of industries and participated
in the comprehensive survey. For those interested in a deeper
understanding of the CPPI, VICOR will present the results and
associated analysis at the AFP Annual Conference in Las Vegas on
Oct. 18, as well as briefings and webinars through the end of the
year. For more information, visit www.vicor.com. About VICOR VICOR,
a Metavante company, is a leading provider of solutions that
optimize the processing of complex payments for businesses and
financial institutions. By managing multiple payment types and
formats across diverse distribution channels, VICOR helps
businesses and financial institutions save time and money, attract
new customers, generate revenue, and leverage existing
technologies. In 2005, VICOR�s solutions processed over $1.4
trillion in payment volume, 222 million payment transactions and
335 million payment related documents. VICOR owns and manages the
Corporate Payments Progress Index (CPPI), an industry initiative
that quantitatively measures the progress of corporate payments.
VICOR is headquartered in Richmond, Calif. For more information
about VICOR and its solutions, contact 510-621-2000 or visit
www.vicor.com. Metavante Corporation delivers banking and payments
technologies to financial services firms and businesses worldwide.
Metavante products and services drive account processing for
deposit, loan and trust systems, image-based and conventional check
processing, electronic funds transfer, consumer healthcare
payments, and electronic presentment and payment. Headquartered in
Milwaukee, Metavante (www.metavante.com) is wholly owned by
Marshall & Ilsley Corporation (NYSE: MI). Metavante and VICOR
are registered trademarks of Metavante Corporation. The corporate
payment industry is rapidly moving toward electronic processing of
business-to-business transactions. That's the findings of the
first-annual Corporate Payment Progress Index (CPPI) created by
VICOR Inc., a leading provider of corporate payment-processing
software. VICOR is part of the Metavante Commercial Treasury
Solutions division. The CPPI is the first and only industry metric
that quantitatively tracks and measures the overall progression of
corporate payments. The inaugural 2006 CPPI stands at 55 on a 0-100
scale. That level indicates a generally satisfied corporate
payments environment with transaction costs under control and
investment in payment systems evenly distributed among the four
major payment methods: electronic-funds transfer, or ACH; check,
wire transfer, and purchasing card. The index indicates that 40
percent of business-to-business transactions are handled by
electronic-payment systems. The CPPI also estimates that in 2008,
the index will stand at 65, with ePayments forecast at 55 percent
of B2B transactions. The 65 level indicates the industry is
approaching a major milestone which is characterized by high
satisfaction, low costs and a larger investment in ePayment
systems. "We've known for a while that the payments industry is
progressing, but we had no method to determine where the industry
stands today or a method to determine the direction and rate at
which the industry is moving." said Robert F. Kirk, VICOR
president. "With the CPPI, we now have vital, quantitative data on
the state and progress of payments to share with such key
stakeholders as financial institutions, technology providers and
corporate payment managers." The CPPI uses a sophisticated model
that incorporates three major business drivers: cost per
transaction, ePayment investment plans and satisfaction level. Each
of these three drivers are calculated based upon a weighted average
across the market share of the four major payment methods. Among
the findings of the inaugural CPPI: -0- *T -- Major drivers of the
2006 CPPI are the Cost and Satisfaction Indices - with each
contributing 42 percent of the CPPI. -- Major drivers of the 2008e
CPPI show a more even distribution among three sub-indices with: --
Cost at 37 percent -- ePayment Investment at 25 percent, an upward
projection from 16 percent in 2006 -- Satisfaction at 38 percent --
As a shift occurs to electronic payments from paper, check-system
investment is expected to decline with reallocation of capital
expenditures to ePayment systems. -- Straight-through processing,
or end-to-end automation of the payments process, is seen as
six-to-eight years away. *T The CPPI, conducted with assistance
from Celent LLC, comprises data from more than 200 corporate
payment managers who represent a broad range of industries and
participated in the comprehensive survey. For those interested in a
deeper understanding of the CPPI, VICOR will present the results
and associated analysis at the AFP Annual Conference in Las Vegas
on Oct. 18, as well as briefings and webinars through the end of
the year. For more information, visit www.vicor.com. About VICOR
VICOR, a Metavante company, is a leading provider of solutions that
optimize the processing of complex payments for businesses and
financial institutions. By managing multiple payment types and
formats across diverse distribution channels, VICOR helps
businesses and financial institutions save time and money, attract
new customers, generate revenue, and leverage existing
technologies. In 2005, VICOR's solutions processed over $1.4
trillion in payment volume, 222 million payment transactions and
335 million payment related documents. VICOR owns and manages the
Corporate Payments Progress Index (CPPI), an industry initiative
that quantitatively measures the progress of corporate payments.
VICOR is headquartered in Richmond, Calif. For more information
about VICOR and its solutions, contact 510-621-2000 or visit
www.vicor.com. Metavante Corporation delivers banking and payments
technologies to financial services firms and businesses worldwide.
Metavante products and services drive account processing for
deposit, loan and trust systems, image-based and conventional check
processing, electronic funds transfer, consumer healthcare
payments, and electronic presentment and payment. Headquartered in
Milwaukee, Metavante (www.metavante.com) is wholly owned by
Marshall & Ilsley Corporation (NYSE: MI). Metavante and VICOR
are registered trademarks of Metavante Corporation.
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