American Express launches “Buyer Initiated Payments”– eliminating cheque and draft payments to vendors

Introduces Next Generation online payment solution for corporates and vendors with efficient, flexible, and safer payment experience

New Delhi, 27 February 2017: Electronic payments aren’t just for consumers who want a quick way to download and watch a movie or pay for a chai. They are also transforming how companies pay and collect for the goods and services they buy and sell. American Express, a global leader in payment solutions, has done just that by announcing 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.

Speaking on the occasion, Saru Kaushal, Vice President and General Manager, Global Corporate Payments, American Express Banking Corp., 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.”

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.

 

About American Express Global Commercial Payments

Through its Global Commercial Payments division, American Express offers a suite of payment and lending products that help businesses and organisations of all sizes gain financial savings, control and efficiency. Global Commercial Payments provides solutions for travel and everyday business spending.

About American Express

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com/in and connect with us on facebook.com/AmericanexpressIndia, linkedin.com/company/american-express, twitter.com/AmexIndia