Bank of America (NYSE: BAC), a global enabler of commercial cards, has recently announced that it expanded its Virtual Payables capabilities in EMEA with the launch of Virtual Payables Direct.
The B2B payment solution provides buyers with the usual working capital advantages of a card transaction – lie extended payment terms – along with an enhancement that allows suppliers to be paid through a direct bank transfer.
This comes at a time when the B2B payments market is expanding steadily and is expected to reach more than $2.4 trillion by the year 2031.
Chris Jameson, head of Product Management for Global Payments Solutions (GPS) EMEA said that Virtual Payables Direct offers clients in EMEA more flexibility as they are able to make card payments to any supplier in the region.
Chris added that the payments are made a lot earlier in the procurement cycle, thereby helping to “improve important supplier relationships and allowing the buyer to take advantage of any prompt payment discounts.”
A key advantage of Virtual Payables Direct is that it helps businesses manage working capital, one of the main priorities for corporate treasurers which has been brought to the fore over the past year.
The solution provides flexibility for buyers as it reportedly allows for large, one-off or last-minute payments.
Suppliers can also receive a quick payment via a bank transfer.
These benefits allow all parties to manage cashflow more effectively and enable greater operational efficiency.
Benefits of Virtual Payables Direct:
- Helps corporate treasurers and buyers optimize working capital.
- Provides greater flexibility for large or last-minute purchases.
- Eliminates the need for suppliers to perform a technical set-up to process card payments.
- Buying organisations enjoy extended payment terms as part of their card program.
- Suppliers receive prompt payment through bank transfer.
Duygu Tasdelen-Stavropoulos, Senior Product Manager – B2B and Payables, GPS EMEA said that Virtual Payables Direct will contribute to the benefits of virtual card payments, like streamlining and automating processes, and reducing payment acceptance complexity, risk and costs.
The rollout of Virtual Payables Direct in EMEA will continue in 2025, with the addition of “product enhancements and expansion to other regions.”