For corporate buyers, commercial cards often mean fast, easy payments. But suppliers aren’t always eager to accept this payment method; on top of interchange fees, establishing the infrastructure to accept card payments can be a challenge.
B2B and B2C payments company Moneris wants to ease the friction for suppliers to accept commercial cards, and it’s starting in its home base of Canada with a new solution to do so.
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The company announced Thursday (Jan. 21) that it will be introducing its electronic payment processing services to the world of B2B payments and to the nation’s suppliers.
According to Moneris, it will launch its B2B operations this spring and help businesses move away from paper-based payment methods. It will be collaborating with Boost Payment Solutions, another B2B electronic payments player, reports said. Boost offers Boost Intercept, a solution the companies said is Canada’s first B2B payments platform.
“As a leading provider of payment processing solutions for merchant businesses, it’s a natural extension of our services to move into the world of business-to-business payments,” said Moneris Vice President of B2B Sales Rob Wilkinson in a statement. “We’re eager to enter this expanding market and to work with leaders in the B2B technology arena to improve the payment process for suppliers and buyers.”
The company said it will provide accounts receivable solutions for suppliers and help them in the process of moving from paper checks and invoices to digital payments and AR tools.
Suppliers can benefit from commercial card acceptance, Moneris said, because it often cuts down on days payable outstanding, meaning invoices get settled faster. Meanwhile, buyers reduce the risk incurred through sending paper checks through the mail. For both ends of the transaction, the company said, buyers and suppliers can benefit from streamlined cash flow.
Moneris pointed to some statistical findings about commercial card acceptance: Visa Canada found that businesses that shift from paper checks to electronic payments can save about $24 for ever $1,000 in sales. Further, Visa Canada found that nearly one-third of businesses see an increase in sales when they begin accepting commercial cards.