New York, N.Y.—June 25, 2012—American Express launched PAYVE, a new digital payment service that enables large and mid-size companies to centralize the processing of multiple payment methods through a single, easy-to-use electronic platform. Payment methods include check, ACH, international wire and American Express’s Web-based payment solution, Buyer Initiated Payments (BIP). PAYVE enables companies to improve working capital and cash flow management while streamlining accounts payable (AP) processes.
“Untangling the payables knot is a priority for finance departments looking to help their companies compete and grow,” said Aaron McPherson, Practice Director, IDC Financial Insights. “Payments are often decentralized, time-intensive and frustrating to manage. Many businesses also rely far too heavily on paper checks, adding another layer of complexity and cost.”
Companies today pay vendors using a number of processes and payment methods across multiple financial institutions. In addition, more than half of U.S. business-to-business (B2B) payments are still made with the inefficient method of paper check. On average, paper check payments cost companies 40 to 50 percent more to process than card or electronic payments.
With PAYVE, companies are able to consolidate payments through a single platform to increase control, efficiency and transparency of their payables. Companies can also accelerate their migration from paper check to electronic payments to reduce costs and make their accounts payable process more efficient.
“Clients are increasingly asking us to help solve more of their payments challenges,” confirmed Andrew Jamison, Vice President, Global Corporate Payments, American Express. “They want to focus less on operations and more on extracting financial value from their payments. With PAYVE, we can help them do that. Supported by American Express’s world-class customer service, proven payments expertise, and in-house supplier enablement team, PAYVE will help companies streamline payments processes and better manage cash flow.”
With PAYVE, clients send a file to American Express that can include instructions for multiple vendors and various payment methods. American Express will then direct payments to each supplier using the designated method—check, ACH, international wire or BIP. PAYVE then processes payments to clients’ banks, allowing companies to maintain their existing banking relationships and corporate processes.
In addition, with PAYVE American Express becomes the company’s strategic payments partner and works with each client to help develop and execute a best-in-class corporate payments strategy. The process starts with Spend IQsm, a spend analytics service that uses detailed client and industry payment data, combined with American Express’s payments expertise, to help clients find ways of increasing the efficiency of their payments process.
Supplier participation is key to the success of any payment service. American Express’s in-house supplier enablement team will help clients onboard suppliers and provide ongoing support for their transition to electronic payments.
PAYVE addresses key pain points for organizations by providing a host of benefits:
- Streamlines the Payments Process: PAYVE centralizes and automates a company’s payments. It integrates with enterprise resource planning (ERP) systems so clients can implement the service with minimal change to current business processes and workflows. Because American Express processes payments to banks, PAYVE complements clients’ existing banking relationships. PAYVE is supported by American Express’s industry-leading customer service.
- Improves Working Capital and Cash Flow Management: PAYVE delivers greater visibility into and control over cash flow by centralizing multiple payment types onto a single platform. Through the American Express billing cycle, suppliers can receive payments faster while clients hold onto their working capital longer. Clients also get access to in-depth payment data, spend analytics, and industry benchmarking that provide clients with insights on how they can improve cash flow and working capital.
- Speeds Migration to Electronic Payments: PAYVE drives faster migration from paper checks to electronic payments, reducing processing costs and inefficiencies. American Express provides dedicated support and expertise to help enroll suppliers so they can accept electronic payments. Suppliers also benefit from going electronic – they no longer incur costs to process checks and can reduce check fraud and improve reconciliation.