Latest news with #B2Bpayments
Yahoo
2 days ago
- Business
- Yahoo
Will commercial VRPs transform B2B payments in the UK?
Adflex has been at the forefront of the B2B fintech revolution since its launch in 2001. It is known for its commitment to innovation and helping companies unlock the potential of digital payments. It covers a range of technologies including travel data, B2B procurement, B2C payments, supplier on-boarding, BACS, SEPA, ACH and hybrid card/BACS payment systems. Pat Bermingham has been CEO at Adflex since the firm launched and is ideally placed to discuss the potential for B2B payments to catch up with their B2C counterparts. He argus that corporate buyers will soon expect the same simplicity as they get when buying items in their personal lives. Take more nuanced services like Variable Recurring Payments (VRP). VRPs are simply an evolution of the current direct debit scheme. They allow a business to make a series of payments ahead of time to better forecast spend and facilitate more informed decisions. One of the most common uses for VRPs in the UK is 'sweeping'. It was back in Autumn last year that the Competition and Markets Authority (CMA) announced that all nine major banks under its remit had now implemented key open banking services, which included Variable Recurring Payments (VRPs) for 'sweeping'. Sweeping lets banking customers set up automated transfers between their bank accounts, based on pre-defined instructions. This might be transferring money from a current account to a savings account to access better interest rates or moving money to avoid going into an unarranged overdraft. Implementing sweeping was for sure an important milestone in the roll out of VRPs, but its impact hasn't been transformative. For VRPs to reach the levels of adoption that many analyst houses are predicting, more use cases need to be rolled out beyond just sweeping, and without stating the obvious, the roll outs need to go well. The good news is that this year, the Financial Conduct Authority (FCA) is overseeing new implementations of Commercial VRPs (cVRPs). A 'standard' VRP allows users to move money between their own accounts. A cVRP uses the same functionality as a VRP, but for consumer to businesses (C2B), or business to business (B2B) payments. You might be thinking, 'but isn't that very similar to Direct Debit?'. In some ways, yes: both allow users to set up automated, regular payments. However, cVRPs also enable automatic adjustments to a payment, without needing to take any manual action, so long as they're within the initial terms agreed. Take a monthly subscription as an example, such as an Audible subscription. With cVRPs, I could set up a term for my Audible subscription that stops payment being taken if my bank account is overdrawn. Or, Audible could in theory offer varying subscription rates based on how many books I actually listen to during a month, scaling up or down automatically based on my usage. Direct Debit cannot do these things. As more and more businesses switch to monthly subscription models for payments, VRPs and cVRPs are far better suited for modern payment behaviours. As I briefly mentioned earlier, the FCA recently assumed ownership of regulatory oversight for open banking in the UK, and so will be responsible for the upcoming cVRP rollouts. 'Phase 1' of this roll-out will include 'lower-risk' cVRP use cases, such as local and central government payments, utility payments and charity donations. You can expect to see these rollouts begin from Q3 this year. On 9 April 2025, Open Banking Limited (OBL) published the Commercial Model for this 'Phase 1' roll out and is currently asking for feedback on the proposed model from industry stakeholders. The deadline for sharing feedback is 16 May 2025. A cVRP multilateral agreement (MLA) is also in the final stages of development, designed to enable easier market access for participants and to provide clarity on the required functionality, pricing, dispute resolution and liability of cVRPs. This rollout is undoubtedly a significant and critical milestone for VRPs. If it goes well, then I expect we'll start to see cVRPs in loads of different C2B payment scenarios. There is also huge potential for cVRPs in the trillion-dollar B2B payment space, where we could witness the most concrete success story in the open banking era so far. In a word: yes. Many businesses today are still spending far too much time managing payments. I've spoken to multiple finance departments that spend up to one working week every month managing payments! That's staggering to me when it simply doesn't have to be like this. cVRPs are one digital solution that could open the door to huge time savings. In the B2B space, cVRPs enable a buyer to set up several payments in one go, reducing administrative overhead. cVRPs enable you to flex the timing and amount of a recurring payment based on the level of service delivered, giving greater control and power to the buyer, while facilitating real-time settlement. This can result in healthier cashflow and better liquidity for businesses. cVRPs also offer better visibility of incoming and outgoing payments compared to manual solutions, enabling businesses to operate with confidence, reinvesting and growing their operations in a sustainable and measured way. A big attraction for businesses will undoubtedly be that, as an A2A payment process, cVRPs also bypass card schemes, potentially avoiding interchange fees. This would benefit businesses operating at scale, or SMEs operating with tight margins. cVRPs also boost payment security, employing Strong Customer Authentication (SCA) – a requirement of the Second Payment Services Directive (PSD2) – at the start of the payment process, verifying identity before any funds are transferred, enhancing convenience and reducing the risk of fraud. Both yes and no. By lowering administrative demands on recurring invoices, such as payments for regular stock, IT subscriptions or licenses, or payments to the supply chain and subcontractors, cVRPs will be extremely beneficial to many firms. But despite the benefits I just outline, a key difficulty cVRPs face is that other payment methods, like commercial cards, are already woven into business payment systems, as well as in the wallets of commercial cardholders, who stand to gain from attractive reward programs. B2B transactions can be complex, requiring multiple layers of authorisation that VRPs aren't equipped to handle. Commercial cards enable tracking tools and extended payment terms that can be preferable to many business buyers. So, I believe cVRPs will likely complement, not replace, commercial (or indeed, virtual) cards. They are well-suited to recurring invoices, for regular, predictable supplier payments. But more needs to be done before we can reach this point: better technical integration, more regulatory oversight, closer collaboration between banks, TPPs (third-party providers), and learning from the lower-risk rollouts taking place this year. Cards will remain dominant for big-ticket transactions, but if managed well, cVRPs could help lighten the load, managing regular, flexible payments and encouraging prompt payment, preferred supplier status and repeat business. "Will commercial VRPs transform B2B payments in the UK?" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Finextra
11-06-2025
- Business
- Finextra
TreviPay welcomes Matt Dewell as chief information security officer
TreviPay, the most-trusted B2B payments and invoicing network, is pleased to announce the appointment of Matt Dewell as its new Chief Information Security Officer (CISO). 0 As a key member of TreviPay's leadership team, Dewell will collaborate closely with internal stakeholders, aligning security requirements with the organization's business needs. 'Trust and protection remain at the foundation of everything we do at TreviPay,' said Dan Zimmerman, Chief Product and Technology Officer at TreviPay. 'Matt will work alongside our talented team to establish security as a true competitive advantage, especially as we grow and adapt to serve the next generation of B2B commerce.' Dewell brings nearly two decades of compliance, audit and information security experience following roles at KPMG, TouchNet Information Systems and Global Payments Inc. His background in delivering innovative and compliant software and services to customers globally will be instrumental in driving TreviPay's continued growth in the evolving B2B payments landscape. 'I'm excited to join TreviPay and contribute to a company at the forefront of B2B payments and invoicing innovation,' said Matt Dewall, Chief Information Security Officer at TreviPay. 'TreviPay's commitment to making B2B payments faster, easier and smarter aligns with the vision I bring to integrate robust security measures to support and enhance the solutions trusted by our clients. By embedding security into every layer of our technology, we protect our clients and empower them to grow confidently in this digital-first world.' Outside of work, Dewell also holds several certifications including Certified Data Privacy Solutions Engineer (CDPSE), Certified Information Security Manager (CISM), Certified Information Systems Auditor (CISA) and an MBA from Kansas State University.
Finextra
03-06-2025
- Business
- Finextra
OatFi raises $24m to build credit network for B2B payments
Fintech infrastructure startup OatFi has raised $24 million in Series A funding to build a credit network for business-to-business payments. 0 White Star Capital led the round, with participation from existing investors Portage and QED backing OatFi's effort to tackle one of the main pain points in B2B commerce: payment terms. In traditional B2B transactions, buyers and suppliers often operate on opposing cash flow incentives. Suppliers seek fast post-delivery payments to recover working capital, while buyers look to delay payments to preserve operating cash and liquidity. By embedding its underwriting, origination, and funding capabilities directly into B2B payment platforms within their AP, AR, and commercial charge card workflows, OatFi's APIs enable platforms to facilitate B2B transactions with built-in financing at the point where it's needed most. 'B2B payments are not just a money movement challenge—they're a data and workflow challenge,' says Michael Barbosa, CEO, OatFi. 'That's why we've focused on deep API integrations that offer working capital solutions within the platforms that businesses already rely on to pay and get paid.'
Finextra
02-06-2025
- Business
- Finextra
Payabl. launches Virtual Business Cards
Leading European financial technology provider, payabl. has launched its Virtual Business Cards service, a digital payment solution designed to give businesses greater control, security, and visibility over their spending. 6 Virtual cards are a digital alternative to physical credit or debit cards, offering real-time issuance, customisable limits, and transparent spending to streamline expense management and enhance financial oversight. Businesses can generate cards instantly, assign them to team members, set spending limits, and freeze/unfreeze access when needed. Built to simplify B2B payments, payabl.'s Virtual Business Cards are ideal for e-commerce companies needing extra transaction security, start-ups and scale-ups managing supplier budgets and global teams with travel and multi-currency expenses. The new proposition further strengthens payabl.'s Business Accounts offering and underpins the company's commitment to helping businesses stay ahead in today's rapidly evolving payments landscape. Ugne Buraciene, Group CEO of payabl., said: 'With the launch of our virtual cards service, we're making it easier for companies to take greater control of their payments. From improved oversight of spending, to the ability to set budgets and ensure the highest level of security, payabl. is removing the friction from payments so businesses can focus on what really matters: growing their businesses and better serving their customers and partners.' payabl.'s virtual cards service has been designed specifically to meet growing merchant demand and usage, with the total volume of virtual card transactions expected to reach 175 billion by 2028, rising from 36 billion in 2023*. The value that virtual cards bring to businesses is evident, with 94% of firms that use them saying their transactions are faster, more detailed, and more secure**. Breno Oliveira, Head of Product at payabl., added: "The virtual cards market is booming, with transactions now in the billions and set to rise significantly. While much focus has been on consumer use cases, the value they can bring to businesses in cutting admin time spent on payments and boosting productivity is evident. And at payabl., we're unlocking those benefits for more businesses.' Card issuance now sits alongside payabl.'s wide range of payment solutions, including card acquiring, local payment methods, and point-of-sale (POS) terminals. Its Business Accounts enable customers to send, receive, and manage multi-currency payments 24/7/365, with access to an all-in-one dashboard and dedicated client relationship managers.
FF News
02-06-2025
- Business
- FF News
payabl. Launches Virtual Business Cards to Empower Smarter Business Spending
Leading European financial technology provider, payabl. has launched its Virtual Business Cards service, a digital payment solution designed to give businesses greater control, security, and visibility over their spending. Virtual cards are a digital alternative to physical credit or debit cards, offering real-time issuance, customisable limits, and transparent spending to streamline expense management and enhance financial oversight. Businesses can generate cards instantly, assign them to team members, set spending limits, and freeze/unfreeze access when needed. Built to simplify B2B payments, payabl.'s Virtual Business Cards are ideal for e-commerce companies needing extra transaction security, start-ups and scale-ups managing supplier budgets and global teams with travel and multi-currency expenses. The new proposition further strengthens payabl.'s Business Accounts offering and underpins the company's commitment to helping businesses stay ahead in today's rapidly evolving payments landscape. Ugne Buraciene, Group CEO of payabl., said: 'With the launch of our virtual cards service, we're making it easier for companies to take greater control of their payments. From improved oversight of spending, to the ability to set budgets and ensure the highest level of security, payabl. is removing the friction from payments so businesses can focus on what really matters: growing their businesses and better serving their customers and partners.' payabl.'s virtual cards service has been designed specifically to meet growing merchant demand and usage, with the total volume of virtual card transactions expected to reach 175 billion by 2028, rising from 36 billion in 2023*. The value that virtual cards bring to businesses is evident, with 94% of firms that use them saying their transactions are faster, more detailed, and more secure**. Breno Oliveira, Head of Product at payabl., added: 'The virtual cards market is booming, with transactions now in the billions and set to rise significantly. While much focus has been on consumer use cases, the value they can bring to businesses in cutting admin time spent on payments and boosting productivity is evident. And at payabl., we're unlocking those benefits for more businesses.' Card issuance now sits alongside payabl.'s wide range of payment solutions, including card acquiring, local payment methods, and point-of-sale (POS) terminals. Its Business Accounts enable customers to send, receive, and manage multi-currency payments 24/7/365, with access to an all-in-one dashboard and dedicated client relationship managers. Companies In This Post payabl.
