Bank of America Unveils Virtual Payables Solution to Support the Booming B2B Market

Published: October 04, 2024

Bank of America has expanded its Virtual Payables capabilities in EMEA with the launch of Virtual Payables Direct.

The business-to-business (B2B) payment solution provides buyers with the usual working capital advantages of a card transaction – such as extended payment terms – in addition to a new enhancement that allows suppliers to be paid via a direct bank transfer. This comes at a time when the global B2B payments market is growing rapidly and is projected to reach over $2.4 trillion by 2031.

“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,” said Chris Jameson, head of Product Management for Global Payments Solutions (GPS) EMEA. “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.”

A key advantage of Virtual Payables Direct is that it helps businesses manage working capital, one of the top priorities for corporate treasurers3 which has been brought to the fore over the past year. The solution provides greater flexibility for buyers as it allows for large, one-off or last-minute payments. Suppliers can also receive a fast payment through a bank transfer. These benefits allow all parties to manage their cashflow more effectively and enable greater operational efficiency.

Benefits of Virtual Payables Direct

• Helps corporate treasurers and buyers optimise working capital.
• Provides greater flexibility for large or last-minute purchases.
• Eliminates the need for suppliers to perform a technical set-up to process card payments.
• Buying organisations enjoy extended payment terms as part of their card programme.
• Suppliers receive prompt payment through bank transfer.

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“We’re pleased to expand payment options for our clients with this new capability,” said Duygu Tasdelen-Stavropoulos, Senior Product Manager – B2B and Payables, GPS EMEA. “Virtual Payables Direct will contribute to the considerable benefits of virtual card payments, such as streamlining and automating processes, and reducing payment acceptance complexity, risk and costs.”

The rollout of Virtual Payables Direct in EMEA will continue in 2025, with the addition of product enhancements and expansion to other regions.