Today in B2B: Increase in Global Commerce Leads to More Automation for Treasurers; 90% of Big Businesses Rely on Real-Time Payments

Today in B2B payments, OwlTing and Nium debut a B2B cross-border payments initiative, while Versapay and American Express get together to streamline the accounts receivable process. Plus, alliances and relationships are more important than ever amidst supply chain disruptions, and Deluxe and Codat collaborate on improved accounting.

Amex, Versapay Team to Improve AR Process

American Express is joining forces with collaborative accounts receivable (AR) provider Versapay to help its clients improve the AR process, giving suppliers who use American Express virtual cards access to Versapay’s AR network of buyers and suppliers for a completely automated acceptance experience.

The program also includes access to its ePayment Delivery Service (ePDS), which does away with email-based payment delivery and automates virtual card payment processing and reconciliation, according to a Versapay press release.

PYMNTS worked with Versapay on “The Strategic Role Of The CFO,” a report that examined accounts payable (AP) and AR modernization. Close to 93% of American companies with at least $25 million in revenue reported that they were integrating digital technologies into their accounting operations.

Treasurers Turn to Automation to Tackle Demands of Global Commerce

As new eCommerce ecosystems emerge, new business models — such as manufacturer-led, direct-to-consumer (D2C) digital storefronts — have underscored the need for a consistent, real-time B2B and business-to-consumer (B2C) payments ecosystem.

According to “Mapping the Global Commerce Future,” a PYMNTS and Citi collaboration, D2C business models require flexible payment mechanisms that let brands provide instant refunds to consumers. This helps ensure seamless user experiences and swift payments to suppliers and contractors, limiting supply chain disruptions.

Shahmir Khaliq, global head of treasury and trade solutions at Citi, told PYMNTS that the massive shift of consumer payments to online conduits has set expectations that interactions between buyers and suppliers should be as fluid and intuitive.

Deluxe, Codat Team Up to Improve Accounting

Deluxe, a payments technology firm, has formed a partnership with small business data application programming interface (API) provider Codat.

The firms will collaborate to allow customers who use Deluxe’s payroll and HR solutions to automatically reconcile their accounting data back into their accounting software. The collaboration will mean business owners only have to connect once on the Deluxe platform.

Ongoing synchronization is handled seamlessly in the background with the help of Codat’s technology. The companies said that by automating this manual process, business owners will save time, reduce errors and ensure payroll data accuracy.

The Data Point: Real-Time Payments Are the Norm at Nearly 9 in 10 Big Businesses

In the study “Real-Time Payments: The Fast Track To The Future Of Corporate Payments,” a PYMNTS and The Clearing House collaboration, we surveyed 100 executives at companies generating $50 million to $1 billion annually to discover what benefits early adopters are realizing through RTP use — and what the remaining hurdles for instant payments are.

The majority of companies said they are now sending and receiving payments in real time, with nearly nine in 10 large businesses in the lower end of enterprise showing the greatest uptake. For companies in the $250 million to $500 million revenue range, usage drops to 27%.

As the study states, “Companies that use real-time payments are more evenly distributed when sorted by industry and not size,” with 19% of financial firms, 18% of wireless companies and roughly 11% of utilities and distribution companies now using real-time payments.

Supply Chain Disruptions Underscore Value of Alliances, Need to Strengthen Payments Relationships

Throughout the past three years, supply chain disruptions have driven home the importance of improving collaboration with both customers and suppliers — including mutual support around payments — for companies in the B2B space.

Jean-Michel Bérard, CEO at Esker, told PYMNTS that as the economy has become increasingly globalized, B2B businesses have realized how heavily thye rely on their partners to survive and thrive. This has led some companies to adopt new supply chain risk management practices, such as diversifying in order to reduce reliance on China.

Businesses have also shifted their focus to innovation and restructured in order to build resilience and flexibility, and companies have found that they must build and maintain strong supplier relationships and alliances to reduce vulnerability.

Blockchain Firm OwlTing, Nium Launch B2B X-Border Payments

Digital payments startup Nium and blockchain services company OwlTing have joined forces to power OwlPay, OwlTing’s real-time cross-border payments service.

The new service covers automatic reconciliation, online currency swaps and cross-border payment services for the eCommerce and travel sectors in Southeast Asia. The companies said Nium’s exchange rate, settlement network and currency support gives businesses an added advantage when completing real-time international remittances.

OwlPay said it will initially focus on Southeast Asia, hoping to capitalize on the projected growth of the region’s internet economy, which could reach a gross merchandise volume of $363 billion by 2025.