Payment transaction delay disrupts operation of companies : survey

The operations of one in four companies would be seriously disrupted by a 24-hour interruption in payments, according to a survey commissioned by OP Financial Group.

The new Corporate Pulse survey indicates that even a one-day interruption in payment transactions would cause significant difficulties for companies operating in Finland, said OP in a press release on Wednesday.

Changes in the geopolitical environment have turned the operational reliability of payment transactions into an issue that is more strategic than ever.

"The transfer of payments is the lifeblood of business. When money moves reliably, companies can focus on growth, internationalisation, and investments. The continuity and reliability of payments have become strategic issues in companies' management teams," said OP Corporate Bank's CEO Katja Keitaanniemi.

The increased strategic importance is also visible in the manner companies closely monitor their cash flows.

About 80 per cent of companies with an annual turnover of 200 million euros or more report that they follow the company's cash position in real time from one place. A real-time overview helps companies monitor their finances and plan investments.

"Companies need real-time data on their cash flows, because the business environment also changes continuously. When the information is available in one service, it becomes easier to grasp the overall picture and plan and forecast finances," Keitaanniemi said.

According to Keitaanniemi, the transfer of payments in Europe is going through a transformation phase, expedited by the fast growth of real-time payments, technological development, and the will to strengthen the European payment infrastructure.

"The future of payments is built on security and efficiency. For companies, this means better opportunities to control their liquidity, automate financial processes, and also operate reliably in a changing environment," said Katja Keitaanniemi.