Despite innovation in the payment methods offered to consumers, the way businesses pay each other has changed very little over the last 40 years. 

Most transactions between businesses are dominated by bank transfers using ABA files, a system designed by the Australian Banking Association.

The problem with this method is that it limits businesses and has been described as the Achilles heel of accounting and payroll systems due to a lack of security and the risk of fraud exposure.

More and more businesses have expressed the desire to pay their suppliers via a credit card as it offers more benefits, but not all suppliers accept credit card payments. 

How does a BPSP agreement help businesses?

Under this agreement, Spenda becomes a third-party provider bridging the gap between suppliers and the businesses they trade with. Enabling businesses to pay their suppliers via a credit card transaction even when the supplier doesn’t accept card payments.

With the BPSP agreement we are changing this and giving Customers and Suppliers more ways to trade and pay each other with reduced fees.

 Customer Benefits

• Customers can pay their suppliers via credit card even if they don’t accept credit card payments – Business Customers can use their credit cards (including personal cards) to pay their entire accounts receivable using Spenda. Funds are then distributed to the supplier’s bank via the Open Banking network.
• Enabling payment via cards for all suppliers – Small and medium businesses can shape their cash flow and take advantage of the 55 interest-free days available on most cards plus any Credit Card Reward points schemes.
• Faster and simpler reconciliation of batch payments – Customer batch payments are allocated and posted directly to their accounts payable ledger. 
  
• Payment passport – Centralised tokenization means that Customers can manage their supplier payment methods from a single point. If your credit card changes or you wish to add another you have only one place to update for all of your suppliers.