Global leader in payment solutions American Express on Monday announced the launch of Buyer Initiated Payments (BIP), an electronic payment platform linked to corporate card that reduces processing costs and offers extended payment terms compared to traditional invoice payments.
BIP enables companies to increase the Days Payable Outstanding (DPO) while still paying vendors on time. This web-based tool linked to Corporate Card fits and works within existing processes and includes reconciliation reporting that simplifies tracking vendor payments. BIP also helps organizations and their vendors to participate in the trading cycle digitally thus avoiding payments through cheques and drafts.
“Moving to digital isn’t just a faster way for a company to make payments and get paid. It also can help businesses reduce processing costs, and provide a more efficient way to track and control expenditures,” said vice president and general manager Global Corporate Payments American Express, Saru Kaushal.
She added that American Express has always brought innovative solutions for corporates, helping them manage their expenses more efficiently.”We believe BIP will help both corporate and vendors to streamline their payments process and move towards the vision of a digital economy,” added Kaushal. Through the BIP process, vendors will receive the payment as a direct deposit into their bank account, along with an electronic notification of the deposit.
BIP also ensures that vendors receive and track their payment as per the agreed terms. Traditionally, the exchange of goods and services between organizations and vendors, involved a tedious task of completing financial enquiries and a period of minimum 60 days to clear payments.
American Express’ vendor enablement team will work one-on-one with vendors to help participating vendors to accept BIP. The ease and flexibility of the BIP solution, allows for customized invoicing and settlement cycles, which is easy to integrate into existing processes of both the customer and the vendor.