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New J.P. Morgan Report Identifies Opportunities For Businesses To Further Reduce Paper-Based Check Payments


Clients Broaden Use of Commercial Card Payments to Improve Working Capital, Increase Rebates and Pay Suppliers Sooner

NEW YORK - J.P. Morgan today issued a new report that highlights how businesses are using payments technology to improve working capital, increase visibility into cash management, and generate higher rebates on accounts payable (A/P) spending. The report “Payment’s New Land of Opportunity” features real-life success stories from J.P. Morgan clients that have implemented Single-Use Accounts and extended the use of their purchasing card programs to hold on to cash longer, pay suppliers sooner, increase rebates and reduce A/P manpower costs.

“Corporate treasury departments are under great pressure to manage costs, control spending and increase working capital,” said Eduardo Vergara, Global Commercial Card Executive, J.P. Morgan Treasury Services. “Card programs are becoming the payment tool of choice as organizations increasingly migrate higher-value, paper-based transactions to electronic payment with complete confidence.”

Until recently, the prime focus for treasury departments has been at two ends of the payment spectrum. Credit cards have traditionally been used for travel and entertainment and some low-dollar expenses, while ACH has been reserved for the high-ticket, direct suppliers. Check processing, renowned for its high cost and no revenue benefit, has filled in all the gaps. Now, companies see a new land of opportunity: the fertile “middle ground” of payment, encompassing a wide field of transactions that have, until this point, been handled by paper.

According to the report, the answer for many companies is to target the large, untapped middle ground. This is the spend landscape that falls somewhere in between low- and high-ticket transactions, with suppliers that invoice regularly but may not be high-volume vendors. To address this opportunity, companies are using two payment solutions, working in tandem: Purchasing Card and Single-Use Accounts.

Highlights from the report include:

* Companies are looking beyond traditional spend categories and targeting non-traditional suppliers for purchasing card payments. Some companies are capturing higher rebates and paying vendors more quickly by using purchasing cards to pay for temporary employment services, utilities, employee drug screening, on-premise security services, legal service providers, advertising and modeling agencies.
* Companies using Single-Use Accounts report results such as more efficient A/P processing, improved fraud protection, increased working capital and larger financial rebates.
* Single-Use Account rebates can be significant. Some companies are earning 100 bps on their larger, indirect purchases.
* Participating suppliers can be paid 15 to 20 days earlier through Single-Use Accounts, improving the company’s Days Payable Outstanding.

For a free copy of “Payment’s New Land of Opportunity”, visit For additional information on J.P. Morgan’s Commercial Card solutions, visit

About J.P. Morgan Treasury Services
The Treasury Services business of J.P. Morgan is a top-ranked, full-service provider of innovative payment, collection, liquidity management, trade finance, commercial card and information solutions to corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide. With more than 100,000 clients and services provided in more than 60 countries and 40 U.S. states, J.P. Morgan Treasury Services is one of the world’s largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at


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