A Revolution Is Needed in How Businesses Process Money
Business-to-business payment processing requires nothing less than a revolution, says GoCardless co-founder Tom Blomfield. He says B2B payments must be transformed by an order of magnitude similar to that experienced by consumer payments in the last 15 years, so that such issues as slow, labor-intensive, and error-prone processing are eliminated. Blomfield points to check payments accounting for about 80 percent of all U.S. B2B payments today as a manifestation of such payments’ laggard pace compared to consumer payments. GoCardless makes B2B payments easier and removes the need for businesses to pay credit card fees or have merchant accounts by plugging customers into the direct debit infrastructure. “From the point of view of a business, it’s not disruptive,” Blomfield says. “It’s making things more seamless [and]…accounts departments literally redundant.” B2B makes up 10 percent of the 350 billion non-cash payments made annually, but they comprise 60 percent of the value of those payments.
From “A Revolution Is Needed in How Businesses Process Money, Says GoCardless Cofounder Tom Blomfield”
Wired.co.uk (07/01/13) Shubber, Kadhim