American Express (Amex) has rolled out corporate card linked Buyer Initiated Payments (BIP), which enables companies to boost the Days Payable Outstanding (DPO) while still paying vendors on time.
BIP helps to slash processing costs and provides extended payment terms compared to traditional invoice payments, claims the company.
Designed as web-based tool, BIP fits and works within existing processes and includes reconciliation reporting that simplifies tracking vendor payments.
The new payment platform also enables organisations and their vendors to participate in the trading cycle digitally thus avoiding payments through cheques and drafts.
American Express vice president and general manager for global corporate payments Saru Kaushal said: “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.
“American Express has always brought innovative solutions for corporates, helping them manage their expenses more efficiently. We believe BIP will help both corporates and vendors to streamline their payments process and move towards the vision of a digital economy.”
Leveraging the BIP process, vendors can receive the payment as a direct deposit into their bank account, along with an electronic notification of the deposit.