In a recent article by The Fintech Times, Adflex CEO Patrick Bermingham discusses how Straight-through processing (STP) improves the issuance and acceptance of B2B payments.

Patrick explains: “Consumer payment innovations like BNPL may hog the headlines, but innovation in B2B payments should not be ignored. A key enabler of faster and simpler payments for the business world is straight-through processing (STP). In simple terms, the big difference between STP and more traditional card payment methods is that STP is buyer-initiated rather than supplier-initiated. This flips the standard B2B payment process on its head, offering more control and transparency for purchasing parties.

“Traditional payment methods require the buyer to call their supplier, lodge a card or issue a virtual card by email, and the supplier would then process the transaction via their payment gateway. STP simplifies the B2B payment process significantly by allowing the buyer to send a payment directly to the supplier via a processor.

“Why does this matter? For buyers, it enables fully automated payments and reporting, greater control over cash flow, and improved supplier relationships through prompt payments. By removing the need for additional processes for those accepting payments, STP reduces costs and ensures suppliers are paid faster, reducing days payable outstanding and bad debt.

Automation also reduces costs, allowing suppliers to reduce the amount of resource spent on accounts payable, while significantly reducing the risk of costly human errors.

“STP also relieves a significant headache for suppliers, as the buyer-initiated payment means the supplier does not need to handle sensitive card information and therefore benefits from reduced PCI scope and processing fees. This allows suppliers to offer buyers a more streamlined checkout experience.

“What does this all mean? In short, prompt payments. And in today’s competitive markets, this can be crucial in enabling businesses to secure preferred partner status and repeat business.”

You can also read the full article here.