Online payment systems offer nimble enterprise solutions
In the current economic climate where many small and medium-sized businesses (SMBs) are fighting to remain open, innovative payment systems are lending a helping hand. These online platforms provide services to SMBs (and consumers, in the case of Plastiq) so that they too have access to the tools larger, established firms count on as they navigate the challenges of operating amidst the ongoing pandemic. Some of these systems even allow for bill payments via a credit card so that businesses can keep their assets for a longer period of time.
In little over two years, payment company Melio has raked in $144 million in investment. The B2B firm helps small businesses minimize the time and cost of managing supplier payments, and does so via an easy-to-use digital platform. With Melio, small businesses can fulfill vendor and contractor payments for free through a bank transfer or debit card, but they also have the option to make any payment with a credit card, which will only incur a 2.9% (and tax-deductible!) fee. Amid the Covid-19 pandemic, Melio has seen payments volumes increase by 700% from March through August, demonstrating how small businesses have increasingly relied on Melio as they manage their finances remotely.
TechCrunch reported that global payables automation platform Tipalti “has raised $150 million at a valuation that the company says is now over $2 billion,” astronomical growth that speaks to not only the current economic climate but also to how fast-growing corporations have been primed for innovative yet seamless enterprise-wide payment solutions. While accounts payable might not be the most attention-grabbing process, it’s nothing less than essential for any enterprise, and Tipalti (which means “I’ll handle it” in Hebrew) allows companies to manage all relative organizational payments with minimal effort and input. Tipalti also plays nice, integrating with other accounting platforms such as QuickBooks and Paladin.
Plastiq is a payment service that allows consumers and SMBs to pay any of their bills with just a credit card—and a small transaction fee. With a recent $75 million Series D funding round back in March, the company raised a total of over $140 million in venture capital, and plans to use its fresh funding round to introduce features that give SMBs faster service when it comes to payments and processing, especially as SMBs have accounted for 90% of Plastiq’s revenue (though when the company was founded, it initially had consumers in mind).