Bank of America (BofA) has introduced Virtual Payables Direct in the EMEA region, expanding its existing Virtual Payables platform.
This business-to-business (B2B) payment solution provides buyers with the typical advantages of card transactions, such as extended payment terms, while now offering the option to pay suppliers via direct bank transfer. The launch comes in the context of quick growth in the global B2B payments market, which is projected to surpass USD 2.4 trillion by 2031 according to the company press release.
Officials from Global Payments Solutions (GPS) EMEA, noted that the new service increases flexibility for clients by enabling card payments to suppliers across the region, even if they do not typically accept card payments. They explained that the solution allows for earlier payments in the procurement cycle, which can improve supplier relationships and enable buyers to benefit from potential prompt payment discounts.
One of the main advantages of Virtual Payables Direct is its ability to assist businesses in managing working capital. The solution provides buyers with the flexibility to make large, one-off, or last-minute payments. Suppliers, in turn, can receive prompt payments via bank transfer, facilitating improved cashflow and operational efficiency.
Other benefits include:
Bank of America officials highlighted that this new feature simplifies the payment process, reduces complexity for suppliers, and lowers risks and costs associated with payment acceptance.
In January 2024, Bank of America announced the launch of a new data-driven treasury management tool named CashPro Insights. CashPro Insights was integrated into the CashPro platform, and it was designed to improve the decision-making capabilities of clients managing their treasury, trade, and credit operations. The platform, accessed by corporate and commercial clients globally, leverages data-driven intelligence to provide insights for informed treasury decisions thus driving cost savings and operational efficiencies.
At the time, representatives from CashPro App and Personalised Technologies at Global Transaction Services (GTS), Bank of America, highlighted the untapped potential of data in treasury and cash management. They also emphasised the importance of organising and analysing data, which is a primary objective of CashPro Insights.
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