Share scheme Ebuyer?
As the use of cheques has declined is it now time to consider more modern payment methods, like PayPal, in share plan administration?
The use of cheques has declined by as much as 40% in the last five years as bank customers turn to online banking to do electronic transfers instead. Figures from a report by The Payments Council (the Council), The way we pay 2010, show the proportion of transactions settled in cash has dropped from 73% to 59%. By 2018, the Council predicts that cash will be used in just 45% of transactions and the Council plans to cease the central clearing of cheques on 31st October 2018. In 2008, it says, just 577 million cheques were written by individuals. It predicts that even without action to 'kill off' the cheque, only 248 million would be written in 2018 - representing just 0.8% of transactions.
Payment preferences have changed in recent times with consumers increasingly using credit and debit cards, electronic transfers and secure online payment facilities like PayPal. So why is it then that when it comes to arranging payments as part of the administration process of a share plan individuals are often left hunting for their cheque book?
RM2 are proud to say that our share plan administration services are far from behind the times. Unlike most share scheme advisers, we administer the schemes we design. We do so inexpensively and to the highest standard (we're ISO 9001 accredited). RM2's unique proprietary software administers all share schemes on a single platform, making them easier to manage and our exclusive online Equity service means employees can keep track of their employee share scheme benefits and exercise their scheme rights online via a dedicated web portal bespoked to the employer brand.
Whilst we admit that most of the administration transactions we currently process still involve cheques we have recently also processed transactions with PayPal. Share purchase payments and share option exercise payments may be settled by way of any payment method acceptable to the relevant company. In the past this has typically been by cheque or in the case of an option exercise at exit, a cashless exercise. In future we may see the Ebayer's preferred payment method, PayPal, becoming more commonly accepted.
For further information about RM2's administration services please contact the author Liz Hunter via Liz.Hunter@rm2.co.uk or dial the office on 020 8949 5522.