AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, has launched its first-ever report examining middle market spending trends. Based on data captured from the 12 million payments processed annually through the AvidPay Network, the research shows that middle market spending is pivoting back to a positive trajectory after two years of growth that was interrupted as a result of COVID-19. Overall spending by middle market companies was down four percent in Q2 2020 compared to Q2 2019, but rebounded in Q3 to a flat percentage year-over-year.
“No industry is exempt from the unusual circumstances of 2020, but the insights in this report speak to the resiliency of the middle market and how businesses have learned to grow amidst the uncertainty,” said Michael Praeger, Chief Executive Officer and Co-Founder of AvidXchange. “Our spending data indicates a positive outlook for the middle market as a whole in the year ahead, with several industries beginning to recover and getting back to work in our new normal.”
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Despite challenges faced during the pandemic, middle market spending on technology has continued to increase rapidly, indicating that leaders feel it is a critical area of investment to keep driving businesses forward. In contrast, spending in areas like transportation and food services remains down, aligning with well-documented disruptions to the hospitality and travel industries in the wake of COVID-19.
AvidXchange’s Middle Market Spending Trends report is based on customer spending data across the AvidPay Network. As the largest payments network for the middle market, the network allows businesses to make payments more efficiently and cost-effectively by transitioning suppliers to electronic options like virtual card and AvidPay Direct (APD). Offering services including maintaining supplier payment conditions and fielding calls on outstanding invoices, the AvidPay Network allows AP teams to focus on more strategic initiatives that support future growth, rather than printing and mailing paper checks.
