B2B Payments

B2B Payments Innovation Down Under

Australian-based MYOB wants it deliver what its acronym stands for….for businesses of all sizes to “mind your own business” while they mind the back office, including payments. Its biggest beef was that business payments have been slow to move online, and cash flow has suffered as a result. Its newest product aims to fix that and mash up payment with invoicing and receipt management.

Just launched in April, MYOB’s PayDirect is the industry’s first MPOS solution for the B2B market. Andrew Birch, MYOB General Manager Connected Services, connected with PYMNTS.com to explain the inspiration behind PayDirect and their focus on business products.

PYMNTS.com Q&A With Andrew Birch, MYOB General Manager Connected Services:

PYMNTS | Provide us with a quick background on MYOB 

Birch | MYOB is all about making business life easier for small business owners and managers so that they can be worry less about the mechanics of running their business. We serve more than 1.2 million businesses from start ups to well established business enterprises across all sectors throughout Australia and New Zealand.

Our latest solution, MYOB PayDirect, turns businesses’ smartphones into payments terminals and offers deep integration with popular cloud accounting solution AccountRight. This will simplify accounting, payroll, tax, CRM, websites, job costing, practice management, inventory, and mobile payments.  MYOB also provides ongoing client support via many channels including a network of over 40,000 accountants, bookkeepers and other consultants.

PYMNTS | What was MYOB planning to solve for with the launch of MYOB PayDirect?

Birch | Interestingly in Australia, two in three SMEs don’t offer credit card payment options, with one in four citing the cost of processing these payments as a barrier to entry. One in 10 said they have lost customers due to not having credit card payment options.

Furthermore, of the respondents who issued invoices to customers (86%), more than one in three said at least one quarter of their customers paid them later than their invoice terms.

Like the fuel gauge in your car, the new MYOB PayDirect app enables small business owners to view and manage cash flow on-the-go. Business owners will also be able to take action to improve their cash flow by issuing invoices, taking credit card payments and administering receipts on the spot. Compared to the current process of returning to the office to generate invoices at the end of the week or month and then waiting 30 days or more to get paid; MYOB is accelerating the cash cycle dramatically.

MYOB PayDirect is a compelling mobile payments solution for businesses who are looking to significantly improve their cash flow.

PYMNTS | How is PayDirect expanding MYOBs offering and what is it doing for your clients and client relationships?

Birch | We’re excited to deliver our mobile payments solution MYOB PayDirect to Australian business owners, for whom cash flow is a crucial focus. It’s another innovative step we’re taking towards making business life even easier. With mobile technologies quickly dissolving the line between working in and working out of the office, MYOB is empowering many of the 1.2 million businesses we service to improve their cash flow and work on-the-go.

The greater an SME’s ability to be paid quickly, and the deeper the insight they have into their cash flow situation, the more likely they are to be able to succeed and grow their business. This is resonating well with not just business owners and managers, but their business advisors such as bookkeepers and accountants. Especially those who use MYOB PayDirect with their MYOB AccountRight cloud accounting solution.

The streamlined application process, affordable monthly payment plans and no lock-in contracts make this a must-have solution for all mobile businesses – from trades to beauty therapists, and accountants to personal trainers.

PYMNTS | How does MYOB treat the various sized business customers differently? What are the platform differences in the offerings?

Birch | From sole traders through to micro, small and larger businesses, our vision is to make their business life easier. No two businesses are the same so we offer more than 50 products and services from desktop software to cloud-based solutions to mobile payments. We believe with the right tools for your business, you’re free to focus on doing what you really love.

MYOB comprises four divisions that cater for our many audiences. Our business division provides services and solutions for SMEs and their advisors such as accountants and bookkeepers. The accountants division work closely with accountants in practice. The enterprise division specifically focuses on larger and more complex mid-market businesses that are experiencing high growth or are expanding into new areas and outgrowing their existing business management systems. Finally our connected services division caters for all businesses who are looking to take advantage of online technologies and services such as MYOB Atlas, our easy-to-use website builder and MYOB PayDirect.

PYMNTS |Who are your competitors? How do you stand out? 

Birch | MYOB celebrates its 23rd birthday this year so we’ve had a long time getting to know the market. We started out in 1991 with a clear purpose: to enable people in business to do things that would otherwise seem daunting.

We spend a lot of time, resources and money making sure we understand the desires, concerns and mindset of today’s SME operators. Not only do we work closely with them, we undertake extensive qualitative and quantitative research into this sphere via our Business Monitor research.

We also continue to innovate, such as extending our business management solutions to be accessible via remote server, online and into the cloud. This in turn enables our clients to make smarter connections with their business partners and customers.

PYMNTS | What is the next big problem in the B2B space that MYOB thinks needs to be solved?

Birch | With today’s digital economy intensifying the need for business owners to be more competitive, it’s even more important for SMEs to leverage opportunities to help boost the health of their business. As mentioned before, cash flow is the 2nd most common paint point for business operators but it’s one of the most important indicators of business health. Our infographic illustrates the situation and what businesses can do to improve cash flow. Having solid control over money-in and-money out is core to the long-term success and viability of every business, and can be the difference between it thriving and failing. In addition, our research shows that a solution like PayDirect will save business owners around 18 hours a month in time when it comes to chasing payments and managing their invoices and accounts.

Also our latest MYOB Business Monitor (a study of 1,000+ Australian SMEs) shows that 43% of Australian SMEs don’t have a website, which always amazes me, and yet over 80% of consumers research online prior to making a purchase. Businesses without a website or those with only a basic one have a strong opportunity to increase awareness and sales through engaging in proper web optimisation. This can significantly improve a business’ financial performance and to be more competitive in their target markets too.

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Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the February 2019 PYMNTS Digital Fraud Tracker Report

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