10 Dec Corporate Welfare: the key role of payments
In this article, we will delve into:
- The growth of corporate welfare in Italy and worldwide
- Opportunities for corporate welfare (CW) providers
- The payment experience as a distinctive asset in CW
- Opportunities with A2A payments
- The case study of Amilon, leader in the European market for digital gift cards
The Growth of Corporate Welfare in Italy
Corporate Welfare (CW) is a set of benefits and services provided by a company to its employees beyond the basic salary. For this reason, corporate welfare represents a form of supplementary compensation that aims to promote employee well-being, enhance satisfaction, and loyalty with the company.
In recent years, the adoption of corporate welfare policies has seen significant acceleration.
According to the 2024 Welfare Index PMI Report, the first index measuring the level of corporate welfare in Italian small and medium-sized enterprises, significant levels of maturity have emerged: 3 out of 4 small and medium-sized enterprises, or 75% of companies, have surpassed the average level of corporate welfare.
Since 2016, the businesses achieving a high or very high level of CW have tripled, increasing from 10.3% to 33.3%, with a particular acceleration over the past two years (+8%). [1]
For 18% of SMEs, corporate welfare is also a strategic lever for managing the business, contributing to productivity and economic success. In 2023, the share of companies with increased turnover grew almost in line with the level of CW, from 28.8% of those with an initial level to 46.5% of those with a very high level.
Opportunities for Corporate Welfare (CW) Providers
The growth of the corporate welfare sector is a phenomenon not limited to Italy: global prospects are extremely positive. An annual growth rate of the global CW market of 4.5% is expected, with a valuation of nearly 72 billion dollars by 2029 (+36% in 5 years). [2]
Moreover, the individual budget allocated to workers for corporate welfare in Europe has increased, rising from an average of €650 in 2022 to €909 in 2023. [3]
The use of gift cards for employees continues to experience a true boom, with a projected net increase of 37% across Europe in 2024. [4]
In this context, new operators are entering the sector, expanding opportunities for providers of corporate welfare products and services. Companies require stable and reliable partners to implement effective and efficient programs through easy-to-integrate platforms that are flexible and offer a rich and varied range of services.
The Payment Experience as a Distinctive Asset in CW
While corporate welfare continues to grow and evolve, a constant factor for the success of providers in the sector remains the trust relationship with clients.
Trust is conveyed through the customer experience, instilling a sense of reliability and security at every touchpoint, improving access, convenience, and ease of use of any service.
In this context, payment also represents a crucial experiential step in the customer journey, generating value to support customer loyalty.
Providing payment options that align with the needs and preferences of the client company thus becomes an important element of competitiveness. Not surprisingly, 60% of businesses adopting new payment methods have the primary goal of improving the customer experience. [5]
Opportunities with A2A Payments
Corporate welfare providers and related service providers operate in a B2B context, where the goal is to build long-term commercial relationships.
Offering a smooth, transparent, secure, and flexible payment experience that includes the right mix of options to meet the specific needs of client companies is imperative.
However, even today, in 55% of European B2B checkouts, at least one “key” payment method is missing. [6] This is a factor not to be underestimated as it can negatively impact brand reputation.
Among the payment methods expanding and particularly appreciated in the B2B sector is Account-to-Account, often referred to by the acronym A2A.
“Account-to-Account” refers to the system enabling payments through one’s bank account, online banking, or mobile app, transferring money directly from one’s account to that of the beneficiary. The pan-European solution MyBank represents the main A2A payment method in Italy.
Summarising the features of this method, the payee receives an irrevocable transfer with immediate confirmation, and without amount limits. In the case of MyBank, it is not a traditional bank transfer; rather it is an online payment offering immediate certainty of collection, allowing rapid management of customer orders.
For those making B2B purchases, having an alternative to more traditional payment tools is essential. For those selling in B2B, being able to collect through solutions like MyBank provides immediate information, certainty of collection, no amount limits, and 100% automatic reconciliation becomes a true distinctive asset.
The Case Study of Amilon, Leader in the European Market for Digital Gift Cards
Amilon is a leading company in managing digital gift cards, headquartered in Italy with branches in Spain (Amilon Iberia) and Poland (Amilon Polska). It operates across all major European markets and in Mexico, offering advanced solutions for incentives, promotions, and loyalty programs, guaranteeing real-time rewards.
The company chose to integrate MyBank as an alternative payment method and has been using it successfully for several years. “In our business, it was essential to offer client companies an online payment option that was different from credit cards and traditional bank transfers, focusing on simplicity and efficiency, two fundamental pillars for Amilon”, explains Renato Buontempo, Partner and CIO of Amilon.
The features of MyBank perfectly meet this need: the irrevocable online transfer with immediate confirmation allows for real-time certainty of collection and quick, automatic order management, without waiting for the credit.
In the B2B context, the absence of amount limits is crucial for high-value transactions, enabling clients to avoid using company card limits. Additionally, the administrative aspect benefits: MyBank entirely pre-fills the transfer, eliminating changes from the customer and ensuring 100% automatic reconciliation, thereby reducing the manual workload for the accounting team.
From the end user’s perspective, MyBank offers a secure and familiar payment method, as transactions occur directly through the online banking service of one’s bank, using already known credentials and requiring no further data input like IBAN, amount, or reason for payment. “This simplicity reassures customers and fosters long-term trust relationships”, concludes Buontempo.
A concrete example of how integrating an Account-to-Account payment solution can enhance efficiency and support the growth of businesses operating in ever-expanding digital markets.
[1] Welfare_Index_PMI_2024_12.06-Comunicato-Stampa_DEF.pdf (welfareindexpmi.it)
[2] Rewards and Incentives Service Industry is Booming; Know Why? (htfmarketintelligence.com)
[3] IRF Webinar: 2024 Industry Outlook for Europe: Merchandise, Gift Cards and Event Gifting – Incentive Research Foundation (theirf.org)
[4] IRF 2024 Trends Report – Incentive Research Foundation (theirf.org)
[5] 2024 Global Payments and Fraud Report (merchantriskcouncil.org)
[6] B2B Check-out Report 2024, Billie (https://go.billie.io/b2b-checkout-report-en)