Bank of America, a leader in commercial cards, has expanded its Virtual Payables capabilities in the EMEA region by launching Virtual Payables Direct, a business-to-business (B2B) payment solution. This innovation enhances traditional card transactions by allowing suppliers to receive payments via direct bank transfers. The global B2B payments market, currently booming, is projected to surpass $2.4 trillion by 2031.
According to Chris Jameson, head of Product Management for Global Payments Solutions (GPS) in EMEA, Virtual Payables Direct offers buyers the benefits of extended payment terms while ensuring suppliers are paid much earlier in the procurement cycle. This fosters stronger supplier relationships and enables buyers to take advantage of prompt payment discounts.
Key Features of Virtual Payables Direct:
- Working capital optimization: Corporate treasurers can better manage cash flow with extended payment terms and faster bank transfers for suppliers.
- Flexibility: The solution enables one-off or last-minute payments, helping businesses meet urgent financial needs.
- Ease of use: Suppliers can receive payments without the need for technical setup to process card transactions.
- Prompt payment: Suppliers benefit from fast payments via direct bank transfers, while buyers still enjoy the card programme’s payment advantages.
Duygu Tasdelen-Stavropoulos, Senior Product Manager for B2B and Payables, GPS EMEA, emphasized that this new capability will streamline and automate payment processes, reducing complexity, risk, and costs associated with accepting payments.
The rollout of Virtual Payables Direct across the EMEA region will continue into 2025, with further enhancements and global expansion planned.