B2B payments have been known to be inefficient and expensive. Customers believe that there is an immense need for streamlining of settlements and reconciliation of business commerce. The current challenges are poor working capital optimization, zero cash visibility and friction in buyer-supplier relations.
In this article, we will discuss 13 companies that are coming up with innovative services addressing the $250-billion B2B payments market.
AribaPay is a cloud-based B2B payments solution unveiled by Ariba, a SAP company and Discover Financial Services. It has a “track & trace” element which gives a real-time view of the status of a payment. It allows full integration of ordering, billing and settlement processes between buyers and sellers. Early closing of the procure-to-pay loop from buyers to suppliers is made possible using AribaPay. Ariba’s cloud-based service combines the insights and applications embedded in the Ariba Network and delivers them through a secure payment infrastructure.
Basware partnered with MasterCard to create an e-payment service enabled by Basware’s commerce network connected to MasterCard’s global payment network. The service optimizes purchase-to-pay and order-to-cash purchases by integrating with existing ERP and accounting systems of involved parties. For buyers, this reduces supplier risk through improved supplier cash-flow confidence. For suppliers, this facilitates improved visibility in tracking outstanding invoices.
Kickpay, a startup fresh from Y Combinator’s latest batch, is offering an open marketplace for financial assets, primarily focusing on outstanding invoices. Kickpay is offering a solution that will assist businesses in automatically selling their uncollected revenue. This basically means that if a company is performing a service or shipping a product, the company can receive the income for the service within the same day. Kickpay uses a combination of data, design and technology to simplify the payments process and reduce credit & fraud risk.
By taking the marketplace approach, Kickpay brings a market-oriented, fair pricing scheme. This helps to avoid the high amounts being charged on each transaction. The company’s marketplace for suppliers and businesses helps bypass some major issues in B2B payments.
Apruve manages corporate accounts for B2B eCommerce buyers and sellers. "PayPal for B2B eCommerce" is one analogy.
Unlike B2C, B2B transactions aren't always able to be settled with a credit card. Businesses buy on terms, use POs, have standing corporate accounts with consolidated invoicing, or need purchasing approval before checking out.
Apruve automates these processes for online buyers and sellers, showing a 50% decrease in traditional A/R cost for the seller while delivering a safer, paperless checkout process for business buyers.
Bill.com (previously called CashView) is a platform with apps that enables businesses to get paid quickly online, pay their bills, and manage budgets and cash flow. The company’s platform offers certain features like accounts payable, accounts receivable, cash flow management and pricing. Bill.com had gained recognition for its API that enables banks and financial institutions to integrate Bill.com’s service into their own websites, systems and applications.
Headquartered in Mountain View, California, Traxpay was founded in 2009 and has an R&D office in Cologne, Germany.
Traxpay says that it provides real-time, 24/7 transactions and trusted trade. It seeks to make settlements fast and simple by connecting full, rich data with each payment. Traxpay targets the market segment through two different editions of its product:
- Traxpay B2B Payments Professional Edition (for small to mid-sized companies) and
- Traxpay B2B Payments Enterprise Edition (for large mid-sized and global organizations).
GoCardless is a UK-based payment firm that works with SMBs to accept direct debit payments and solve their late payment woes affecting cash flows. Founded in 2011 by Matt Robinson, Tom Blomfield, Hiroki Takeuchi, GoCardless aims to make payment collection simpler for SMBs through collecting direct debits online.
The company is backed by some of the world’s leading investors including Balderton Capital, Accel Partners and Y Combinator.
Fundtech claims to develop transaction banking solutions that automate activities like cash management, payments, settlement, liquidity management and the financial supply chain. Its line of products and services for business include remote deposit capture, SWIFT for corporates, payments, merchant services and electronic invoice presentment.
Transpay was launched in late 2012, and at that time, they deployed robust, industrial-grade, back-end and front-end technologies. Coupled with their proprietary cross-border payments network, they were able to pioneer instant, direct-to-bank or cash pick-up payouts.
Today, they have the largest, independent direct-to-bank network in the world. They have partnerships with some 10,000 banks and payment processors in more than 120 countries. In most countries, their network reaches more than 90% of the banked population. They also send funds to 200,000 cash pick-up locations.
Transpay’s total global payout volume in 2014 was $4 billion with 11.6 million transactions. They have 6,065 business clients and three million individual clients.
Payoneer is known for sending and receiving international B2B payments and is based in New York. Payoneer was founded in April 2005 by Yuval Tal (President). The management team includes Scott Galit (CEO), Karen Levy (COO), Michael Levine (CFO), Jonny Steel (VP Marketing) and Noam Oren is Chief R&D Officer. Payoneer enables companies in over 200 countries and is ranked in the top 100 in Inc. 500’s Financial Service companies.
Bottomline Technologies, Inc. provides cloud-based payment, invoice & banking solutions to banks, corporations, insurance companies and financial institutions. The company’s solutions are used to streamline, automate and manage transactions involving global payments and document management. The company has alliances with organizations like Oracle, Accenture, IBM, Microsoft and SAP to create unparalleled solutions for clients.
Invapay was founded in 2008 and is an FSA-regulated firm which specializes in innovative procurement and electronic payment solutions. Global corporations use the Invapay platform to manage purchases from tail-end and one-time-only vendors from source to settle. The company provides services such as supply chain payments, e-invoicing, working capital and Level 3-enriched VAT & tax data for all transactions.
Invapay has signed an agreement to work with VISA in 11 Asia-Pacific regions to support B2B payment automation. Visa has launched a new data and invoice management platform in the space and will use Invapay as the payment and reconciliation engine.
Hummingbill Collect is a chrome extension based application that increases the rate of on-time payments for services companies and product suppliers. The application does this through better organization of invoice data, automated payment reminders, and imbedded payment links in invoices.