American Express (NYSE:AXP) has announced improvements to its supply chain product. Originally launched in 2018, Early Pay allows companies and their suppliers the ability to pay and get paid through a digital platform. Early Pay provides suppliers the ability to optimize their cash flow by accepting early payment offers from their buyers, in exchange for a discount.
Daniel Brachfeld, Vice President/General Manager, Supply Chain Solutions at American Express, said that as they focus on enabling digital payments beyond traditional corporate cards they are investing in services to improve bot the buyer and sell experience:
“Right now, businesses are more focused on digital transformation than ever before, with 84% of U.S. business decision-makers saying they feel positive about transitioning to a digital payments system. The latest evolution of Early Pay provides a supply chain solution that will give businesses more flexibility to help manage their payments and cash flow easily and efficiently. This comes at a time when businesses are seeking a simple digital solution among a rapidly evolving and fragmented supplier payments landscape.”
The enhanced Early Pay solution provides several new features for buyers, including the ability to:
- Optimize cash flow by capturing invoice discounts through early payments funded and made by either American Express or the buyer.
- Turn potential cash discounts from early payments into savings and working capital.
For suppliers, they can choose to accept discounts on all invoices, or on an invoice by invoice basis, to automatically get paid early through the American Express Early Pay digital platform.