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Leavitt , founder and CEO of Boost Payment Solutions , said commercialcard programs are now coming to the forefront of AP departments’ priority lists when delaying payments is no longer the most viable, or effective, cash management option. Optimizing Card Spend.
Yet in only the last few months — and even weeks — India’s FinTech startup community has seen a proliferation of commercialcard innovation. It’s an interesting phenomenon, especially considering the path to corporate card adoption elsewhere. “All of these expenses require a credit card,” he said.
Commercialcards have struggled to gain widespread adoption in B2B payments, and new research from Mercator Advisory Group aims to explain why — and how to overcome those adoption barriers. But corporate buyers often prefer cards to obtain rewards points.
Though credit cards were not originally designed to address the needs of corporate payers, advances in commercialcard technology have positioned the paymenttool as one that’s gaining traction in the accounts payable department. “But in the cross-border space, it’s a different ball game.”
Faster payment initiatives, a focus on application programming interfaces (APIs) and data integrations and efforts to elevate traditional B2B paymenttools like ACH and commercialcards all made waves this summer. When they need to move money same-day or next-day, their minds go straight to wire.”.
Initially, this came in the form of purchase cards that gave managers the ability to allow their employees to make purchases on behalf of their companies, from office supplies to travel and expense spending. Leavitt says suppliers are indeed more difficult than buyers to convince of commercialcards’ value proposition.
Neat looks to lower costs and boost efficiency through its partnerships with remittance companies to enable cross-border wire transfers, with its service enabling SMBs to store and remit funds in the local currencies of its various business accounts.
Their collaboration , announced Thursday (March 16), will see OnPay’s payment automation services integrated into Nivo1’s AP Express accounts payable platform, enabling AP Express to act as an end-to-end platform for corporate clients to manage and pay invoices straight from the platform using OnPayConnect.
It’s a stark contrast from its historical high of 81 percent in 2004, analysts noted, and suggests checks are steadily declining within corporate payments. The AFP’s report was released the same week a range of new electronic B2B paymenttools were announced, the latest in a deluge of digital payment solutions emerging in recent years.
Outdated, Inadequate PaymentTools. Another point of friction in cross-border B2B payments that Payoneer and Armor are targeting is the commercialcard. It’s an ecosystem that has forced especially smaller businesses to rely on outdated technologies, Galit and Reynolds said. Take the letter of credit, for instance.
Funding payroll with a credit card is not always supported by various financial services players, he explained, largely due to fraud associated with the paymenttool. There’s a specific risk involved with allowing people to use their credit cards,” Chester said.
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