Asia bank United Overseas Bank (UOB) is introducing a digital B2B payments solution for its corporate clients.
Reports said this week said the FI is rolling out UOB Virtual Payment Solutions, a suite of services to help businesses digitize their accounts payable. The services deploy virtual card technology to help companies pay their vendors, noting that the solution works even for suppliers that don’t accept credit card as payment.
While enabling faster payments to suppliers, the solutions also help buyers extend their cash flow by up to 90 days, UOB said.
The suite of services was developed in conjunction with Visa Business Solutions and U.K.-based Invapay, reports said.
“In the current economic climate, it is important for companies to be even more proactive in managing their cash flow and increasing productivity to ensure their continued growth,” said UOB Managing Director and Head of Group Commercial Banking Eric Tham in a statement. “That is why we continue to introduce financial technology solutions such as the UOB Virtual Payment Solutions suite to make managing the financial side of their business easier.”
In another statement, UOB Managing Director and Head of Personal Financial Services Jacquelyn Tan said cards are gaining traction in B2B payments.
“Over the last five years, we have seen close to a 20 percent increase in the use of payment cards by companies,” she said. “This is mainly because the companies appreciate the ease of account reconciliation that credit cards bring. However, as their SME suppliers generally do not accept credit cards, the companies have had to rely on time-consuming cash and checks to pay them. Through the UOB Virtual Payment solutions suite, our corporate customers can pay their SME suppliers as well as reap the benefits of using credit cards.”
The bank did not explain in its announcement how its virtual card solution can be used with suppliers that don’t accept card payment, however.