1

Payments Pulse DataPayments Trends Survey Results - Part I

2

TABLE OF CONTENTS

I. Methodology and Sample Characteristics ...........................................3

II. Survey Highlights ............................................................................4

III. Graphs and Tables ..........................................................................6

3

METHODOLOGY AND SAMPLE CHARACTERISTICS

Zogby Analytics was commissioned by WEX Inc to conduct an online survey of 500 CFOs nationwide.

Using internal and trusted interactive partner resources, thousands of adults were randomly invited to par-ticipate in this interactive survey. Each invitation was password coded and secured so that each respondent could only access the survey one time.

Based on a confidence interval of 95%, the margin of error for 500 is +/- 4.4 percentage points. This means that all other things being equal, if the identical survey was repeated, its confidence intervals would contain the true value of parameters 95 times out of 100.

Subsets of the data have a larger margin of error than the whole data set. As a rule we do not rely on the validity of very small subsets of the data, especially sets smaller than 50-75 respondents. At that subset we can make estimations based on the data, but in these cases the data is more qualitative than quantitative.

Additional factors can create error, such as question wording and question order.

ABOUT ZOGBY ANALYTICS

Zogby Analytics is respected nationally and internationally for its opinion research capabilities. Since 1984, Zogby has empowered clients with powerful information and knowledge critical for making informed stra-tegic decisions.

The firm conducts multi-phased opinion research engagements for banking and financial services institu-tions, insurance companies, hospitals and medical centers, retailers and developers, religious institutions, cultural organizations, colleges and universities, IT companies and Federal agencies. Zogby’s dedication and commitment to excellence and accuracy are reflected in its state-of-the-art opinion research capabilities and objective analysis and consultation.

4

SURVEY HIGHLIGHTSCurrent payments processing practices of surveyed companies

• Almost three-fourths (72%) of surveyed companies have an electronic payables initiative underway and, of those considering one (26%), 93% are working to launch an electronic payables paperless strategy in the next 6-12 months. Larger companies are more likely to have electronic payable initiatives underway.

• These decisions are motivated primarily by process improvement (82%), reducing operational costs (70%) and environmental concerns (70%) as well as security (64%).

• Almost all surveyed businesses either currently use outsourced platforms or technologies to perform account payables (57%), or plan to do so in the next 6-12 months (28%).

• Almost all surveyed businesses would consider a vendor outside of their current bank or financial insitutions to help with payments: 52% are very likely and 38% are somewhat likely to consider an outside vendor.

• Payments platform selection is most influenced by overall user experience (71%), reporting analytics (60%) and speed of reconciliation capabilities (60%). Vendor status within the industry (51%) and practical usage of AI/Machine-based learning and advanced business intelligence are of medium importance (40%), while AR/VR is a major factor for only 18% of surveyed CFOs.

Viewpoints on disruptive technologies

• Almost all surveyed CFOs are confident (61% extremely confident and another 35% somewhat confident) in their understanding of the function and capabilities of blockchain and distributed ledger technologies. Large companies’ (annual revenue >$51m) CFOs are even more confident in their understanding of blockchain and distributed ledger technologies, with over 70% saying they are ‘extremely confident’.

• Half of CFOs expect blockchain or distributed ledger technologies to change how their accounts payable operate in the next 6-12 moths and another 44% believe it will allow their business to scale more quickly and interna-tionally.

• Mobile capabilities to manage and approve payments (55%), mobile payments (55%) and blockchain (54%) are considered to be very important by most CFOs.

• CFOs from larger companies (annual revenue >$51 million) are more likely to believe that augmented/virtual reality and machine-based learning will be very important in the next two years.

5

Payment processing companies are seen as the leader in the field

• Payment processing companies are considered most likely to disrupt the payments industry in the next 12-24 months (39%), followed closely by big banks (32%).

• Fintech startups are considered most likely to disrupt payments industry by 16% of surveyed CFOs.

6

What is your company’s annual revenue?

More than $100M

15%

$5M - $25M

41%

$26M - $50M

23%

$51M - $100M

21%

Which of the following best describes the number of employees in your company?

More than 1000

22%

100 - 499

44%

500 - 1000

34%

West

What region is your company located in ?

26%East30%

Central GreatLakes18% South

26%

7

INDUSTRY FREQUENCY

Agriculture 8

Automobile/Transportation 15

Academia 5

Biotech/Pharmaceuticals 11

Electronics 22

Finance/Banking 71

Healthcare 32

Government 10

Hospitality/ Food and Beverage 9

IT - Hardware 40

IT - Software 71

Infrastructure/ Construction 33

Legal 9

Manufacturing 61

Media/ Entertainment 5

Real Estate 11

Retail 32

Security 2

Technology 42

Utilities 4

Other 7

What industry is your company in?

8

Which scenario more likely applies?

We are working to launch anelectronic payables paperless

strategy in the next 6-12 months

We are working to launch anelectronic payables paperlessstrategy in the next 1-3 years

93%

7%

Not considering one

Does your business have an electronic payablesinitiative underway or are you considering one?

1%Not sure

1%

Considering one26%

Payables initiative underway

72%

9

What is motivating this decision? (Select all that apply)

Environmental concerns

Process improvement

Reduce operational costs

Security

Other

70%

70%

82%

64%

1%

How do you expect blockchain or distributed ledger technologies to impact your business in the next 6-12 months?

It will change how our accounts payable operates

It will allow our business to scale more quickly and internationally

It will not affect our business

It has already affected our business

50%

44%

5%

1%

10

Not sure0%1%

3%

35%61%

How confident or not confident are you in yourunderstanding of the function and capabilities of

blockchain or distributed ledger technologies?

11

Which industry do you think will be the firstto successfully implement blockchain?

Retail 20%

8%

12%

Real Estate

Insurance

Travel

Healthcare

Media

Finance/ Banking

Not Sure

Other

4%

9%

4%

40%

3%

0%

12

Not too important

3%

Not at all important

3%Not sure

0%

Somewhat important

30%Very important

64%

How important or not important is the capabilityto transact in international currencies to your business?

13

Does your business currently use outsourcedplatforms(s) or technology to perform accounts payable?

Yes

We will begin outsourcing AP in the next 6 - 12 months

We are discussing internally and aim to make a strategic decision

on outsourcing in the next 12 - 24 months

57%

28%

9%

What current payment processing options is yourbusiness using? (Select all that apply)

Check

ACH

Virtual Card

Mobile Payments

79%

52%

63%

68%

47%Wire Payments

No plans 6%

14

Not at all likely2%

Not sure1%

Not toolikely

6%

Somewhat likely

38%

Very likely

52%

On a scale of 1 to 5 with 1 being strongly disagree, 3 being neutral, and 5 being strongly agree, do you agree or disagree with the

following statements

5 - Strongly agree

2 - Somewhat disagree

4 - Somewhat agree

1 - Strongly disagree

3 - Neutral

Not sure

Payments providers should do more to offer you innovative tech-

nology (e.g., flexible user interface, seamless API, advanced analytics,

reporting, etc.)?

47% 30% 10%6% 7%

Consumer behaviors strongly influence business use of payment innovators (e.g., mobile payments,

peer-to-peer payments, etc.)

48% 29% 10% 3 8%

How likely or not likely is your business to consider a vendor outside of your current bank or financial institution to help with payments?

15

Which group within the marketplace do you think is most likely to disrupt the payments industry in the next 12-24 months?

Fintech startups

Big banks

Payment processing companies

Collaboration between smaller and larger firms

Not sure

16%

32%

39%

8%

5%

16

Which industry in the most innovative with respect to payments?

Retail 20%

8%

10%

Real Estate

Insurance

Travel

Healthcare

Media

Finance/ Banking

Not Sure

Other

10%

6%

7%

36%

3%

0%

17

Does your business use cloud payments(Software as a Service to execute payments)?

Yes

We intend to implement acloud based system in the next

6-12 months

We are discussing internally andaim to make a strategic decision on using cloud payments in the next

12-24 months

No plans

57%

29%

8%

5%

Which of the following most influences yourpayments platform selection? (Select all that apply)

Overall user experience

Reporting analytics

Vendor status within the industry

Speed of reconcilliation capabilities

71%

60%

51%

40%Practical usage of AI (Artificial Intelligence) / Machine-Based

Learning and advanced business intelligence

AR/VR (Augmented/Virtual Reality)

60%

18%

Other 0%

18

Strongly disagree

2%Somewhat disagree

7%

Not sure

2%

Somewhat agree

42%

Strongly agree

Which of the following most influences yourpayments platform selection? (Select all that apply)

Cost/ fee structure

Service (e.g., responsive account team, knowledgeable IT support, etc)

Security of systems and transactions

Ability to consistently manage and execute new innovations

62%

62%

68%

21%Ability to remain compliant with industry regulations

Not sure

34%

2%

Agree or disagree with the following statement:I trust a cloud based system to keep AP secure more than

a locally hosted Enterprise Resource Planning System

46%

19

How important do you think the followingtechnology will be to your business in the next 2 years?

5 - Very important

2 - Not too important

4 - Somewhat important

1 - Not at all important

3 - Neutral

Not sure

Blockchain

37% 37% 17%5 2

54% 29% 11%

Cloud payments

AR/VR(Augmented/Virtual Reality)

Artificial Intelligence / Machine-Based Learning

Data mining/ business intelligence

Mobile payments

Mobile capabilities to manage, approve payments

2 31

48% 35% 12%3 1

2

40%

55% 30% 11%2 2

37% 15%4 23

46% 38% 12%311

55% 32% 9%2 2

1

Which of the following aspects of accounts payableare the most important to your suppliers? (Select up to 3)

Data associated with payments

Speed of payments

Security of payments

34%

Cost of acceptance

Guaranteed payment

Not sure

42%68%

74%28%

1

20

How important are the following attributes of a payments provider?

5 - Very important

2 - Not too important

4 - Somewhat important

1 - Not at all important

3 - Neutral

Not sure

Customer Service

51% 38% 7%

69% 20% 8%

Knowledgeable IT

Fees/ revenue share

Security

Innovativeness

1 3

58% 31% 8%1

67% 23% 7%

21

55% 31% 11%1

11

111

21

Strongly disagree

2%Not sure

1%Somewhat disagree

5%

Somewhat agree

31% Strongly agree

Agree or disagree with the following statement:Maintaining a postive relationship with my suppliers

is equally as important as implementing new technologies

61%

21

How important are the following aspects of payments to your business?

5 - Very important

2 - Not too important

4 - Somewhat important

1 - Not at all important

3 - Neutral

Not sure

Mobile payments 59% 28% 9%

Surcharges

Currency fluctuations

2 2

48% 36% 10%133

40% 42% 14%22

Security of Transactions 71% 20% 6%11

22

Submitted to:WEX IncHavas PR

Submitted by:Zogby Analytics

Jonathan Zogby – Chief Executive OfficerChad Bohnert – Chief Marketing Officer

Marc Penz – Systems AdministratorZeljka Buturovic – Survey Statistician

June 2017

Zogby Analytics901 Broad Street

Utica, New York 13501zogbyanalytics.com

© 2017