Straight-Through Processing (STP) enables a more efficient way to pay invoices while providing the traditional benefits of commercial card payments to both the buyer and the supplier. With STP, buyers can request to time their payments to maximise the number of days before their statement, giving them more flexibility with their cashflow than would be the case with a bank transfer.
Suppliers benefit by receiving funds directly into their accounts without the need to manually input card details or use card terminals. STP also makes it easier for suppliers to identify the source of inbound payments thanks to the rich remittance data.
The launch of STP is the latest in a series of payment innovations Lloyds Bank has introduced to support its business customers. In 2020, it went live with Swift gpi Instant, which connects the high-speed Swift gpi cross-border payments rail with real-time domestic infrastructure, in this case the UK’s Faster Payments system.
In 2019, Lloyds Bank also launched its payables API – designed to enable businesses to send faster payments directly from their systems without human intervention – which now processes more than GBP 350 million of payments every month. STP will further expand Lloyds Bank’s capabilities for its business customers, automating supplier card acceptance processes together with additional working capital benefits.
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