PayMate, a provider of business-to-business (B2B) payments and services, announced the expansion of the geography of its activities.
Making ambitious adjustments to the strategy of this company is aimed at achieving the goal of greater coverage of the B2B payments market, which, according to the company, has a cash turnover of 68 trillion dollars.
PayMate already provides services to consumers in India and the United Arab Emirates. At the end of last week, the firm announced the expansion of its operations in Central Europe, Africa, the Middle East, and the Asia-Pacific region.
The company’s press release contains information that PayMate will offer its solutions for automating payments in B2B format to small and medium-sized enterprises, as well as large corporate clients who will be able to use their internal credit cards issued by the bank to pay accounts payable, such as payments to suppliers and mandatory payments, and payment of bills. The firm claims that its proposals will help to increase the level of efficiency in the use of working capital for the purpose of strategic business growth.
B2B payments, as part of the PayMate solution, will be transferred directly to the bank accounts of suppliers. This financial proposal will expand the use of corporate credit cards. The current reality is that most providers do not accept card payments.
Rakesh Khanna, commercial director of PayMate, says that in 2021, Africa accounted for $10 trillion out of $120 trillion in global commercial payments. The indicator of the Asia-Pacific region in this structure is 58 trillion dollars.
Experts say that payment automation is a kind of tool through which enterprises gain greater and more transparent control over cash flows. Automation is of particular importance for payments in the B2B format, in which traditional internal work processes can become burdensome. This is the opinion of Steve Lindeman, Director of customer relations at Billtrust.
Lindeman noted that manual methods of working with payments involving the participation of people entail additional costs of time and money. As a result of the use of automation, the whole process turns into a kind of flow that does not require external influence.
Lindeman added that technological solutions, including, for example, tools for converting orders into cash, provide business managers with an idea of the best industry practices and criteria, such as invoicing and payments, detailed information about business units connected to each other in the process of functioning. He says that consumers want to have access to the best practices, and not to apply a formally new algorithm that provides standard mechanisms. Also, according to him, the new solutions have the advantage that all the cash is in the right place.
In the United States, according to industry research, 68% of executives expect innovations in the field of B2B payments in their companies in 2023. They need working capital and cash flow management tools.
As we have reported earlier, B2B BNPL Provider Hokodo Acquires European Payments License.
