Bank of America, the commercial cards provider, has expanded its virtual payables capabilities in EMEA by launching a new business-to-business (B2B) payment solution ‘Virtual Payables Direct’.
Through the new solution, Bank of America provides buyers with the usual working capital advantages of a card transaction (such as extended payment terms), alongside a new enhancement that enables payment to suppliers via a direct bank transfer.
The global B2B payments market continues to experience rapid growth, with estimates suggesting it will reach over $2.4trillion by 2031.
Chris Jameson, head of product management for global payments solutions EMEA, at Bank of America
“Virtual Payables Direct offers our clients in EMEA greater flexibility as they can make card payments to any supplier in the region, regardless of whether the supplier typically accepts card payments,” explains Chris Jameson, head of product management for global payments solutions EMEA, at Bank of America. “The payments are made much earlier in the procurement cycle, thereby helping to improve important supplier relationships and allowing the buyer to take advantage of any prompt payment discounts.”
Bank of America explained that Virtual Payables Direct aims to help businesses manage working capital, which is a priority for many corporate treasurers according to recent reports.
The solution provides greater flexibility for buyers by enabling large, one-off or last-minute payments. Suppliers can also receive a fast payment through a bank transfer. These benefits enable all parties to manage their cashflow more effectively and enable greater operational efficiency.
Leveraging virtual payables
According to Bank of America, its Virtual Payables Direct solution also helps corporate treasurers and buyers optimise working capital and eliminates the need for suppliers to perform a technical set-up to process card payments.
“We’re pleased to expand payment options for our clients with this new capability,” said Duygu Tasdelen-Stavropoulos, senior product manager, B2B and payables, global payments solutions EMEA. “Virtual Payables Direct will contribute to the considerable benefits of virtual card payments, such as streamlining and automating processes, and reducing payment acceptance complexity, risk and costs.”
The rollout of this new solution in EMEA will continue in 2025, with the addition of product enhancements and expansion to other regions.
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