American Express (NYSE: AXP) announced that it has entered into an agreement to acquire Nipendo, a company used by global businesses “to automate and streamline business-to-business (B2B) payments processes.”
The transaction is American Express’ latest strategic step “toward its goal of creating a leading end-to-end B2B platform, making business payments simpler and more efficient.” American Express is building a broader suite of B2B capabilities “for both buyers and suppliers through new product development, M&A and partnerships.”
In 2019 Amex acquired acompay, and in 2022, Amex partnered “with Accounts Receivable players BillTrust and Versapay.” Last month, the company “announced Amex Business Link, a B2B solution for American Express’ network participants.”
Nipendo’s platform “allows businesses to easily connect, communicate, and automate Procure-to-Pay processes, including accounts payable and receivable.” The Nipendo platform works alongside a company’s existing systems, “allowing customers to maintain their current payments infrastructure, while benefiting from additional automation.” American Express intends “to integrate Nipendo’s team, technology, and capabilities to expand its differentiated offerings for businesses.”
Anna Marrs, Group President, Global Commercial Services and Credit & Fraud Risk at American Express, said:
“Our extensive direct relationships with both buyers and suppliers puts us in a unique position to transform the way companies pay for goods and services. We are taking the friction out of B2B payments, paving the way for faster, more efficient, and transparent transactions. With Nipendo, we will strengthen our expertise and capabilities in the space, and their innovative platform will give business customers common ground to connect and transact on the Amex network.”
Nipendo Co-Founder & CEO, Eyal Rosenberg, commented:
“Businesses can face a number of challenges even before they make a payment, including finding the right suppliers, managing order processes and supply chain, as well as handling discrepancies and invoice reconciliation. These traditionally paper-based processes require heavy investments of time, effort, and money. We are honored to become a part of American Express, excited about the synergy of our mutual vision and looking forward to serving as an important component of the new business value we can offer, by efficiently streamlining B2B payments.”
The acquisition is “subject to customary closing conditions and is expected to close within the quarter.”