Allows for deposits directly into supplier's account
MARKHAM: Amex Bank of Canada has launched Buyer Initiated Payments (BIP), an automated, web-based payments solution.
The solution is designed to help improve an organization’s working capital, reduce liquidity risk and offer early payment to suppliers, Amex said.
“At Amex Bank of Canada, we’re seeing growing demand from businesses for help in becoming strategic about payments and expense management,” says Rob McClean, vice-president and general manager, Global Commercial Card, Amex Bank of Canada.
Through the BIP platform, the buyer sends a payment instruction file to American Express, which then deposits funds directly into the supplier’s bank account. The buyer then pays American Express at the end of a billing cycle. The platform allows buyers to extend days payable outstanding and decreases days sales outstanding for the supplier, improving cash flow.