To this day, B2B payments are known to be inefficient and expensive. Paying invoices and moving funds across borders for small and medium business (SMB) is costly and full of uncertainties. Customers believe that there is an immense need for streamlining of settlement and reconciliation of business commerce. At present, the challenges are poor working capital optimization, zero cash visibility and friction in buyer-supplier relations.
In this article, we discuss six companies that are coming up with innovative services addressing the $250-billion B2B payments market.
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 and 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 is a payment method designed specifically for the way businesses buy things. The company allows a user to purchase a good or service online and charge it directly to their business or a client at checkout. That essentially means no expense reports to file, no requisition forms, no reimbursement and reduced credit card security issues.
CheckSpace, Inc. released an e-payments platform oriented towards small businesses. CheckSpace has integrated its offerings with the financial systems being used by the small businesses. This allows business customers to draft electronic checks and create reports in accounting software. The service charges only 95 cents per transaction, thus being a cost-effective solution. The service keeps financial institutions in the picture by directly adding or deducting transactions into respective accounts.
AribaPay is a cloud-based B2B payments solution unveiled by Ariba (a SAP company) and Discover Financial Services. It has a track-and-trace element giving a real-time view of status of a payment. It allows full integration of ordering, billing and settlement processes between buyers and sellers. Early closing of procure-to-pay loop from buyer to supplier party is made possible using AribaPay. The cloud-based service combines the insights and applications embedded in the Ariba network, and delivers them through a secure payment infrastructure.
Basware tied-up 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.
Bill.com (previously called CashView) is a platform with apps that enable 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 enabled banks and financial institutions to integrate Bill.com’s service into their own websites, systems and applications.