Bank of America’s virtual card offering in Europe, the Middle East and Africa (EMEA) is expanding.
The banking giant launched Virtual Payables Direct, a B2B payment solution offering buyers in EMEA the working capital benefits of a card transaction, plus a new enhancement that lets suppliers be paid through a direct bank transfer, according to a Wednesday (Oct. 2) press release emailed to PYMNTS.
“Virtual Payables Direct offers our clients in EMEA greater flexibility as they can make card payments to any supplier in the region, regardless of whether the supplier typically accepts card payments,” Chris Jameson, head of product management for global payments solutions EMEA, said in the release. “The payments are made much earlier in the procurement cycle, thereby helping to improve important supplier relationships and allowing the buyer to take advantage of any prompt payment discounts.”
Virtual Payables Direct helps businesses manage working capital, among the chief priorities of corporate treasurers, while also offering greater flexibility for buyers as it allows for large, one-off or last-minute payments, per the release.
“Suppliers can also receive a fast payment through a bank transfer,” the release said. “These benefits allow all parties to manage their cash flow more effectively and enable greater operational efficiency.”
Meanwhile, Eric Frankovic, general manager of corporate payments at WEX, told PYMNTS in an interview posted last month about the rise of the virtual card as a payment method. Virtual cards have value in the payments ecosystem, particularly for businesses looking for a balance between control and return on investment.
“In the U.S. specifically, if implemented correctly, virtual cards give you the best mix of security, control and return on that investment,” Frankovic said.
Grasping supplier relationships and understanding which suppliers are willing to accept virtual card payments is critical in determining how this payment method can be effectively integrated into a business’ payment strategy, he added.
For companies with large supplier networks, like multinational corporations, optimizing virtual card use requires a more nuanced approach.
“It’s much more about vetting that entire supplier list, trying to understand the different tranches of suppliers, those that are considered highly strategic and you don’t want to upset because they’re critical to your supply chain,” Frankovic said.
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