B2B Payments

Amex Launches Early Pay For Faster Supplier Payments

American Express is introducing a new solution to accelerate B2B payments to suppliers.

In an announcement Thursday (Oct. 11), American Express said it is launching Early Pay, a combination of supply chain finance and early payment discount capabilities. Designed for large U.S. companies procuring from U.S.-based suppliers, Early Pay links vendors to an online platform to have their invoices paid before their due dates for an early payment discount.

American Express noted that the solution streamlines the vendor payment process for large corporate buyers, while accelerating cash flow for the vendors.

“Access to money and improving efficiency are crucial for the growth of both corporations and the companies they work with,” said American Express’ senior vice president and general manager of global commercial financing, Gina Taylor Cotter, in a statement.

Cotter added that the solution stems from an internal program developed at American Express in 2016, where the company deployed a similar service to its own vendors.

“Now companies can leverage their accounts payable to reduce costs of goods and services while offering automatic, flexible payment terms to their eligible suppliers,” Cotter continued.

The solution offers several options for corporate buyers. Companies can have American Express finance their early invoice payments. This option allows buyers to reinforce their cash flow while maintaining existing payment terms with their vendors. Companies then pay American Express back on the original invoice payment date.

There is also the Self-Funded option, which allows companies to pay invoices themselves before their due-dates. This provides companies with an early payment discount.

For vendors, American Express offers flexibility on when they want their outstanding invoices to be paid in exchange for a discount. This allows companies to get paid more quickly at a rate that may be lower than if they were to seek external financing. Payments can be made via wire transfer or ACH.



B2B APIs aren’t just for large enterprises anymore — middle-market firms and SMBs now realize their potential for enabling low-cost access to real-time payments and account data. But those capabilities are only the tip of the API iceberg, says HSBC global head of liquidity and cash management Diane Reyes. In this month’s B2B API Tracker, Reyes explains how the next wave of banking APIs could fight payments fraud and proactively alert middle-market treasurers to investment opportunities.