AmEx Global Pay Brings Ecommerce Convenience to B2B

Multinational payments leader American Express recently launched a mobile-friendly, global pay solution for making local and international B2B payments and transactions. Through this new digital solution, U.S. American Express business customers can send payments funded from their business bank account to their suppliers in more than 40 countries, consolidating the payment experience for SMBs by speeding up process times and creating simplicity in foreign exchange payments.

“In businesses today, it’s a hassle if you want to send even ten thousand dollars, a hundred thousand dollars, or a million dollars, from one country to another, using the existing system with banks,” said Peter Jensen, CEO of RocketFuel Blockchain Inc. “Sometimes the money gets there, sometimes it doesn’t, and sometimes it gets stuck. Using modern technology, it’s much safer, it’s cheaper, but more importantly it’s very reliable.”

According to research from leading payments data organization PYMNTS, 82% of executives think their SMB customers are extremely interested in using all-in-one platforms like the one AmEx is launching, and 72% say the same for using these platforms to make B2B payments. However, this adoption is still new for many within the industry, and with another major player entering the B2B payments game, it’s bringing barriers to light.

“Every time a new technology comes out, it takes time to generate awareness and knowledge for everyone in the industry. As a provider what we can do is keep pushing the technology out there so people can experience it and see the benefits for themselves,” Jensen said.

All-in-one payment solutions grab the attention of SMBs for their ease of use and the ability to prioritize payment preferences for both sides of the transaction, an important feature when trying to maintain important supplier relationships. At the same time, SMB-level buyer and supplier relationships can experience a lot of strain especially during times of economic downturn like we see today, whether that comes from supply chain disruptions, producer-side inflation or interest rate hikes. Experts are seeing vendors get more aggressive in their collection of payments to increase their cash flow.

“Sometimes this is presented as, ‘hey will you pay us early, or we’re changing our payment terms from net 30 to net 15,’” said Dalton Allen, CEO of Third Eye Capital. “The vendor wants to get paid as quickly as possible, and the supplier wants to pay the vendor, maintain that relationship, and be positive about it.”

In an effort to simplify some of this strain, AmEx Global Pay offers same-day business payments for eligible purchases, and is also implementing a rewards system on foreign exchange payments for merchants. Users of this program can earn one Membership Rewards point for every $30 equivalent in foreign exchange payments.

“If you’re engaged in any type of international payments, these payment platforms are really experts in the space and can help you navigate the nuance and complexity of international payments,” Allen said.

These solutions presented by AmEx will be an essential puzzle piece in the larger digital transformation of SMBs, and if standardized, will create a more fluid payments experience for a global ecosystem of B2B transactions.

“At the end of the day this is about optimizing and streamlining a process that is currently super inefficient. It will save money, and increase revenue,” Jensen said.