While commercial card adoption is often about driving value for business end users, the technology can also offer a means of overcoming key barriers for customers.
In this week’s Commercial Card Innovation Tracker, PYMNTS looks at the latest solutions to combat barriers — for accounts payable (AP) adoption, under-banked employees, and small underserved trucking companies.
Billhop Lands Funding To Boost Commercial Card Adoption
With a lack of card acceptance among the biggest barriers to commercial card adoption in the AP department, FinTech startup Billhop has secured new funding to help overcome that challenge. A Tech.eu report said the company, based in Sweden, raised $4.86 million for its solution that enables businesses to pay their invoices with cards, while the company moves funds to the supplier even if they are unable to accept card payments.
In a statement, CFO and Co-founder Ingemar Sjögren said the pandemic has challenged the corporate card space to look beyond business travel to drive spend.
“The pandemic has led to massive reductions in travel and entertainment spend traditionally comprising the bulk of corporate card spend,” he said. “It has forced commercial card issuers to find new avenues to stimulate card volumes.”
Investors at Element Ventures led the Series A investment, the report noted, adding that Billhop plans to use the money to invest in product development, as well as to grow its sales and marketing teams.
OneSource Virtual Taps The Payroll Card For Early Wage Access
OneSource Virtual is looking to connect professionals to their earned wages more quickly and is using the payroll card to do it. In an announcement, the company revealed it is rolling out myFlexPay, a digital payroll solution that connects employees to earned wages instantly via their payroll card. It’s a technology that can mitigate the friction and security risks of paper paychecks, the company noted, while also empowering underbanked employees that may not be eligible for direct deposit.
The payroll card is facilitated by Fiserv’s Money network and is the latest extension of OneSource Virtual’s B2B payroll offerings.
In a statement, Chief Financial Officer John Bax said, “Providing our customers with the ability to offer a Money Network payroll card means their employees will gain the unrivaled benefits of a world-class payroll solution.”
He added that the funds on the payroll card are FDIC insured and protected under Mastercard’s Liability Policy.
Comdata Targets The Small Trucking Company
Designed for smaller fleets, Comdata’s new fleet card aims to empower businesses with fewer than 50 trucks to connect drivers to savings and discounts on fuel and other fleet-related services. Comdata, a FLEETCOR company, noted smaller trucking businesses will gain access to its Extra Mile Discount Program to access savings on purchases like parking, tires and more. The card also integrates real-time spend control, expense analytics, fraud alerts and customizable dashboards for drivers and fleet managers.
In a statement, Comdata Senior Vice President of Product and Innovation Justin King pointed to the importance of supporting the trucking industry today.
“As this pandemic continues into 2021, the strength of the supply chain becomes increasingly critical to ensure that essential goods are moving efficiently,” he said in a statement. “Comdata is thinking outside the box to keep America’s fleets moving forward and ensure that our fleet customers and their drivers have everything they need to focus on the road ahead.”