Visa's next initiative to disrupt B2B payments is focusing on the real estate market. The company is pairing up with Nexus Systems, a provider of accounts payable (AP) solutions for the real estate industry, to streamline supplier payments for joint customers, the companies said in a press release Wednesday (Sept. 12).
Their collaboration will focus on adoption of virtual cards in the real estate AP segment, according to Visa Business Solutions Vice President Taira Hall in a statement, who added that the companies aim to "reimagine B2B payments for buyers and suppliers."
Nexus' AP tool, the NexusPayables Solution, will integrate with a bank's Visa commercial-credit-account payment functionality, allowing Nexus customers to pay suppliers via a Visa commercial card without having to leave the Nexus platform. Businesses submit a payment file on Nexus to initiate the generation of a single use virtual card. Suppliers are emailed payment and remittence details to process the virtual card payment.
"Our collaboration with Visa will help us deliver virtual card payments for our clients, transforming the tedious pain point of supplier payments into a fully automated, integrated, seamless experience," said Nexus President Jennifer Coolidge.
Visa recently ramped up its focus on B2B payments with the acquisition of Fraedom earlier this year. The companies had a long-standing partnership, with the acquisition enabling Visa to deepen integrations of Fraedom technology into B2B payment offerings, like the Visa IntelliLink Spend Management platform.
"I think there is a perception of simplicity, but the reality in commercial payments is that there are many parties, [and] there is a lot of friction," said Kevin Phalen, Visa's head of global business solutions, in an interview with Karen Webster in February. "And once you go global, it creates more problems. Ultimately, what you have to do is attack each component of that complexity, rather than assume there is one answer to everything."