American Express launches new B2B digital payments ecosystem

American Express announced the launch of Amex Business Link, a business-to-business payment system that enables Amex customers to offer their business customers integrated and efficient domestic and cross-border payments.

FACTS

• For network participants, Amex Business Link offers :

  • Automatic integration of buyers and suppliers;

  • Lending solutions that provide buyers and suppliers with access to working capital;

  • Access to all customers in the American Express network;

  • Support including a hands-on training module, integration and services for third-party issuers and acquirers providing Amex Business Link to their business customers.

• For buyers and suppliers, the solution enables :

  • Connect to customer relationship management (CRM) and enterprise resource planning (ERP) systems that use application programming interfaces (APIs);
  • Multiple payment methods are accepted, including: card, ACH, wire transfer, check, etc...;
  • Purchase and sales information that allows companies to monitor business growth;
  • Access to dynamic reports that allow for automatic reconciliation.

• The new ecosystem is currently operating with 500 business customers in five countries.

CHALLENGES

• Participating in the digitisation of business: Amex Business Link modernises the way businesses buy and sell from each other with the flexibility to choose in real time how they want to pay or be paid.

• Offering a wide range of payment methods: While fintechs addressing the B2B payment market tend to focus on a single payment solution, Amex Business Link accepts the full range of payment methods that businesses use, including card, ACH, wire transfer and check. In addition, the platform also supports international payments.

MARKET PERSPECTIVE

• Many fintechs are now focusing on the corporate segment. And if the digitalisation of this sector is one of the motivations, the current crisis that is hitting them hard is another. In response to the American Express and Kabbage small business survey published in September, 37% of respondents said they were raising prices to combat rising inflation, 22% were renegotiating with suppliers and 22% were cutting back on less profitable products and services.