While faster order time and convenience are perceived as the biggest benefits of online purchasing, security concerns remain. Companies are worried not only about protecting the purchasing data from prying eyes but also about the integrity of new dotcom trading partners. Online purchasers pay by credit card nearly as often as a corporate check, but payment for the majority of purchases is still by check. This finding reflects the need for online settlement and transaction capabilities, American Express said. Nearly 80 percent of online purchases still are settled using paper processes.
Companies now sitting on the e-procurement sidelines appear ready to jump in.
The study comes just as American Express puts the finishing touches on its forthcoming Market-Mile exchange for companies now using the company's corporate card to buy goods and services. The e-marketplace, to be built by exchange platform developer Ventro Corp. using technology from Ariba Inc., will launch early next year. American Express has more than 50,000 suppliers capable of participating in MarketMile, which will feature office and industrial supplies.