Now SMEs can automate payments, cut costs, ease cash flows as PayMate enhances its B2B platform

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Updated: Aug 18, 2020 5:21 PM

Technology for MSMEs: PayMate is taking its B2B payments platform to Central Europe, the Middle East, and Africa (CEMEA) region in partnership with Visa. It has over 50,000 businesses using the platform while it looks to achieve a $10-15 billion run-rate in gross processing volumes by March 2020.

 

nitin gadkari, sme, msme, industry, sector, microfinance facility, economic revivalInstamojo, Razorpay, Mswipe, are some of the other companies in the digital payment space focusing on MSMEs as well.

Technology for MSMEs: Digital payments solution provider PayMate has enhanced its B2B payments platform for SMEs and other enterprises to become a full-stack supply chain payments automation platform. The company has now allowed businesses to automate (make and schedule) single or bulk vendor payments using commercial cards and extending the days payable outstanding to save cash for other crucial payments. The commercial card is an unsecured credit line given by a credit card issuing bank to eligible businesses with usually around 30-45 days of the repayment period. Days payable outstanding or DPO refers to the time (days) a company takes to pay its invoices to suppliers, vendors, etc.

The revised platform by PayMate would also digitize the entire process of procuring products from vendors and distributors to making payments to save “over 70 per cent time, resources, and costs for businesses,” the company said. Small businesses can Request For Proposals (documents providing details about a project and soliciting bids from contractors), finalize vendors, create purchase orders (POs), generate invoices against POs and make partial or full payments against the invoices. PayMate also offered an invoice discounting marketplace for easing cash flow crunch for small businesses. Buyers and suppliers could connect with each other, negotiate discounts (offered by suppliers) and buyers can make early payments to help suppliers with the working capital flow.

Also read: 1,155 MSME vacancies for whopping 4.66 lakh candidates currently; these many placed in 2 years

“According to Atradius survey’20, there is a significant increase in late payments from B2B customers. An average of 66 per cent of the total value of B2B invoices was overdue. In India, invoices were overdue for over 90 days. This puts SMBs in a precarious situation where they find it tough to sustain themselves,” said Ajay Adiseshann, Founder & CEO, PayMate told reporters as he launched the new platform via a video conference.

Instamojo, Razorpay, Mswipe, are some of the other companies in the digital payment space focusing on SMEs as well. PayMate is now taking its B2B payments platform to Central Europe, the Middle East, and Africa (CEMEA) region in partnership with Visa. It has over 50,000 businesses using the platform while it looks to achieve $10-15 billion run-rate in gross processing volumes by March 2020.

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