Aiming to bring the ease of peer-to-peer payments to the business class, Bento for Business announced that it will be launching a payments service of its own. The new service will be called Bento Pay and will help eliminate the need for business owners to write checks.
New service makes payments easier
The Bento Pay service will be available for business users in July and help them make and receive payments using an email address. The vendor can select how he gets paid- via an ACH payment to their checking account or a virtual card. Farhan Ahmad, the co-founder of Bento for Business, said that this is the first of its kind service in an industry where paper checks have been the norm. The process not just consumed more time but also made payment sending and receiving more difficult.
He noted that the old system of “check is in the mail” has transformed. Bento was quick to spot an opportunity and move the payments to a secure digital platform for its customers. He said that in the B2B market, high level of security is security as the size of the payments is much larger. Without robust security, it would not be possible to use digital payments options.
What to expect from the market?
Bento for Business estimates that the B2B small business commerce market is expected to reach $9 trillion by next year in the US alone. Interestingly, about 80% of businesses still use paper checks for payments. Payment companies can capitalize on this opportunity and help in the eventual shift of these companies. Consumers are also advancing to digital and contactless payments, but business services still seem to be using old ways.
Bento for Business also references recent research by Deloitte, which points to a $100 billion revenue opportunity because of businesses shifting to digital payments. But Bento for Business isn’t the only business aiming to get a piece of the business P2P payments pie. Bill.com raised $88 million via venture funding at a $1 billion valuation in April. The company has already announced a strategic partnership with MasterCard.
Bill.com’s service will include MasterCard virtual card. It will be a part of the company automated accounts payable service focused at small and midsized business. This service also eliminates the need for payments via checks. The company’s founder and CEO Rene Lacerte emphasized that the market is facing a tipping point in terms of B2B payments, and the focus is on making checks outdated.