A press release issued by Yooz this week said the firm is working with SnapCheck to integrate digital check solutions into its offering, allowing businesses to obtain the benefits of electronic payments while retaining the familiarity of paper checks. Together the companies are able to integrate into existing ERP solutions, with Yooz automating invoice management and SnapCheck offering its Digital Checking Platform to pay those invoices.
In a statement, Yooz North America COO and Chief Innovation Officer Laurent Charpentier said businesses' continued use of paper checks in B2B payments led the company to seek out a partner that could address friction associated with the payment rail, including high costs and the risk of fraud.
"Many businesses still prefer to pay vendors and suppliers by check, and our combined solution will flawlessly automate and digitize from end to end what used to be a very manual and time-consuming process," Charpentier said.
In another statement, SnapCheck CEO Ken Kruszka described the partnership with Yooz as "a great opportunity" to help companies "modernize their accounts payable processes. Through the combination of Yooz's invoice management automation platform and SnapCheck's instant digital check payments, businesses can achieve an entirely paper-free back office."
Roughly 50 percent of U.S. businesses pay their suppliers via check, according to Association for Financial Professionals (AFP) data. Vendors anticipate ACH to eventually surpass paper check in terms of received payments volume, with B2B FinTech largely focusing on the friction associated with paper checks to innovate and offer companies better solutions.
In a previous conversation with PYMNTS, SnapCheck's Kruszka noted that the largest advantage paper checks have in B2B payments is that they're "universal."
"We fall back on the pragmatic side of things: Let's just solve problems today, instead of hoping that everyone is going to shift into a new technology," he said in the interview.