Plastiq Connect is designed to provide platforms with a configurable way to enable multiple payment methods and disbursement options for their business customers to pay suppliers and get paid by their customers more easily. The new integration reportedly method offers an embeddable UI, similar to a white label experience, that requires even less development time, the official press release states.
According to Plastiq CEO, ‘embedded finance is not only changing the way businesses transact and maintain working capital, it’s giving any business the opportunity to offer financial services as a means to expand product lines and drive growth’. The company states that the payments industry's credit card acceptance model for the past 5+ decades has focused on one primary construct: the merchant-funded processing model.
Plastiq reportedly has a different approach, introducing the solution that both buyers and sellers have been demanding. The company believes a more significant share of the USD 9 trillion B2B payments market can run on card rails, so it seeked to reverse the model. According to Plastiq, the ecosystem can support a buyer-funded model versus the supplier-funded model that is the status quo. By leveraging existing working capital or new readily acceptable lines of credit and a digital bill pay/AP, all businesses can grow and scale faster, the official press release continues.
Plastiq Connect reportedly allows banks and platforms to:
Enable invoice payments by card to any vendor around the globe even where cards are not accepted.
Support a payer-funded card payment model.
Expand or enter new payments categories to monetise customer payments without taking on the risk, operations, or compliance functions.
Founded in 2012, Plastiq operates in the embedded finance market. The company seeks to build a financial operating system for small businesses to help them improve cash flow with an all-in-one bill pay solution that offers access to working capital. Plastiq’s embedded finance solutions enable platforms to monetise their customer base by offering B2B payments, without the burden of managing the risk and operations. Plastiq raised more than USD 140 million in funding and is backed by Kleiner Perkins, B Capital Group, Khosla Ventures, and other investors.
In August 2022, Plastiq and Colonnade Acquisition Corp. II entered into a definitive agreement and plan of merger. In September 2022, the US-based B2B payments platform announced that Plastiq Short-Term Financing will provide capital to Small and Mid-Sized Businesses (SMBs).
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