So it appears that Barclays has joined the fray in using virtual card technology as one of their B2B payments options. Using the product name Precisionpay, it integrates with an existing ERP to generate automated payments using tokenized virtual cards. While there is not much detail as to the workings of the solution, you can watch a cool little video on the bank’s website.
Barclaycard is hoping to change that for the B2B world. It is now offering virtual card payments – dubbed Precisionpay – which is integrated into a company’s ERP, allowing for seamless payments, as well as easier management and approval controls.
The piece goes on to compare how this is analogous to travel payments on the consumer side, which use virtual card technology. In fact, this is certainly not a new solution on the B2B side by any means, since virtual card numbers have been in use and in high growth mode for invoiced payments during the past 5+ years. The Barclays solution may have some new twists and easier user experiences. It is also not clear whether Precisionpay also integrates with an e-procurement system, which we’ll attempt to clarify. All in all, another indication that paper-based supplier payments can now be much more easily conducted and virtual cards have moved into mainstream payables.
Parpou added that Barclaycard believes that this is a “massive opportunity” because there has long been tensions between organisations and suppliers around prompt payment. Precisionpay allows for companies to give their suppliers a virtual card upfront, so as soon as something is delivered, that supplier can then immediately draw upon the card for the payment.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
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