![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/09/smb-ebedded-finance.jpg?w=242\")
While no two small and medium-sized businesses (SMBs)\u00a0are alike, many face similar challenges.
\nAnd those challenges tend to be related to the widening gap in digital transformation when it comes to the back office and payments functions of SMBs versus their larger, enterprise peers.
\nStill, with the news Tuesday (Sept. 3) that payment-as-a-Service provider\u00a0UNIPaaS\u00a0has launched a small-business-focused invoice payments partnership with\u00a0American Express, embracing purpose-built solutions that cater to the unique needs of SMBs is top of mind for both Main Street merchants as well as the FinTechs and payment innovators serving them.
\nAfter all, SMBs are a diverse group, varying in size, industry, and geographical location, making their payment preferences equally diverse. Unlike large enterprises that can build custom payment systems or dedicate resources to advanced treasury management, SMBs operate with more limited budgets and infrastructure. As a result, their payment needs tend to revolve around key priorities such as affordability, simplicity, flexibility and reliability.
\nAs these businesses begin to embrace and integrate digital tools, the potential for increased efficiency, reduced costs, and faster access to working capital will not only drive growth for SMBs but will also transform the landscape of global commerce.
\nRead more: Small Businesses Embrace Instant Payments: Benefits Beyond Speed
\nSMBs represent a massive volume of daily transactions across sectors, from retail and manufacturing to services and logistics. Digitizing these transactions through better payments systems could drastically improve efficiency, cash flow, and transparency for businesses.
\nThe\u00a0PYMNTS Intelligence\u00a0report, \u201cEnd the Wait: SMBs and the Protracted Challenge of Delayed Payments,\u201d in conjunction with\u00a0American Express, analyzes whether a new wave of digital transformation could signal the end of an ongoing and chronic problem facing SMBs: that of delayed payments. The research finds that ineffective cash flow management, cited by 60% of SMBs as a major challenge, exacerbates the risk of business failure.
\nAt the same time, only 5% of small business owners, or 1 in 20, have\u00a0fully automated\u00a0their accounts receivable (AR) and \u00a0accounts payable (AP) processes, despite the fact that doing so can provide them with the insights and growth opportunities they seek.
\nAutomation is critical for reducing manual intervention in payment processes. Many SMBs still rely on manual invoicing and reconciliation, which is both time-consuming and prone to errors. By offering digital tools that automate these tasks, payment providers can help SMBs streamline their operations and reduce the friction that slows down transactions.
\n\u201cBusinesses are worried about the investment in terms of time and resources,\u201d American Express\u00a0Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman\u00a0told PYMNTS.
\nThat\u2019s why addressing the challenges that prevent SMBs from adopting digital solutions requires a multi-faceted approach. While traditional methods like ACH payments continue to play a crucial role in the SMB space, the rise of innovations like virtual card payments and the increasing demand for real-time digital solutions are reshaping the sector.
\nStill, many SMBs operate on legacy systems or basic accounting software, making seamless integration with new payment platforms essential.
\nRead more: 75% of Companies Still Use Paper Checks Despite High Cost
\nThe marketplace is continually responding the many-headed needs of SMBs.
\nAs PYMNTS covered Tuesday, Ziina raised $22 million to provide FinTech services for UAE-based small businesses; while on Friday (Aug. 30) Brazilian FinTech Ume raised $15 million in a Series A funding round to expand its payment network and merchant services platform for SMBs on Pix.
\nAnd PYMNTS Intelligence finds that financial solutions like embedded lending are helping SMBs manage cash flow, invest in growth, and improve their overall financial health.
\nEmbedded lending allows SMBs to access credit directly within the platforms they already use, such as eCommerce platforms, accounting software or payment processing systems. This eliminates the need for separate applications to banks or other financial institutions, saving time and reducing friction in the borrowing process.
\nJennifer Marriner, EVP,\u00a0Global Acceptance Solutions at\u00a0Mastercard, told PYMNTS that SMBs are a\u00a0significant focus within the embedded finance landscape. She noted that SMBs are particularly attracted to\u00a0embedded finance\u00a0as it offers a straightforward way to access financial services through the platforms\u00a0that they\u00a0already use for other business operations, such as accounting and inventory management.
\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.
\nThe post Small Businesses Tap FinTech Innovations to Close Big Digital Transformation Gap appeared first on PYMNTS.com.
\n", "content_text": "While no two small and medium-sized businesses (SMBs)\u00a0are alike, many face similar challenges.\nAnd those challenges tend to be related to the widening gap in digital transformation when it comes to the back office and payments functions of SMBs versus their larger, enterprise peers.\nStill, with the news Tuesday (Sept. 3) that payment-as-a-Service provider\u00a0UNIPaaS\u00a0has launched a small-business-focused invoice payments partnership with\u00a0American Express, embracing purpose-built solutions that cater to the unique needs of SMBs is top of mind for both Main Street merchants as well as the FinTechs and payment innovators serving them.\nAfter all, SMBs are a diverse group, varying in size, industry, and geographical location, making their payment preferences equally diverse. Unlike large enterprises that can build custom payment systems or dedicate resources to advanced treasury management, SMBs operate with more limited budgets and infrastructure. As a result, their payment needs tend to revolve around key priorities such as affordability, simplicity, flexibility and reliability.\nAs these businesses begin to embrace and integrate digital tools, the potential for increased efficiency, reduced costs, and faster access to working capital will not only drive growth for SMBs but will also transform the landscape of global commerce.\nRead more: Small Businesses Embrace Instant Payments: Benefits Beyond Speed\nWhy the Untapped Small Business Segment Is a Goldmine\nSMBs represent a massive volume of daily transactions across sectors, from retail and manufacturing to services and logistics. Digitizing these transactions through better payments systems could drastically improve efficiency, cash flow, and transparency for businesses.\nThe\u00a0PYMNTS Intelligence\u00a0report, \u201cEnd the Wait: SMBs and the Protracted Challenge of Delayed Payments,\u201d in conjunction with\u00a0American Express, analyzes whether a new wave of digital transformation could signal the end of an ongoing and chronic problem facing SMBs: that of delayed payments. The research finds that ineffective cash flow management, cited by 60% of SMBs as a major challenge, exacerbates the risk of business failure.\nAt the same time, only 5% of small business owners, or 1 in 20, have\u00a0fully automated\u00a0their accounts receivable (AR) and \u00a0accounts payable (AP) processes, despite the fact that doing so can provide them with the insights and growth opportunities they seek.\nAutomation is critical for reducing manual intervention in payment processes. Many SMBs still rely on manual invoicing and reconciliation, which is both time-consuming and prone to errors. By offering digital tools that automate these tasks, payment providers can help SMBs streamline their operations and reduce the friction that slows down transactions.\n\u201cBusinesses are worried about the investment in terms of time and resources,\u201d American Express\u00a0Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman\u00a0told PYMNTS.\nThat\u2019s why addressing the challenges that prevent SMBs from adopting digital solutions requires a multi-faceted approach. While traditional methods like ACH payments continue to play a crucial role in the SMB space, the rise of innovations like virtual card payments and the increasing demand for real-time digital solutions are reshaping the sector.\nStill, many SMBs operate on legacy systems or basic accounting software, making seamless integration with new payment platforms essential.\nRead more: 75% of Companies Still Use Paper Checks Despite High Cost\nThe Complex and Sometimes Conflicting Priorities of SMBs\nThe marketplace is continually responding the many-headed needs of SMBs.\nAs PYMNTS covered Tuesday, Ziina raised $22 million to provide FinTech services for UAE-based small businesses; while on Friday (Aug. 30) Brazilian FinTech Ume raised $15 million in a Series A funding round to expand its payment network and merchant services platform for SMBs on Pix.\nAnd PYMNTS Intelligence finds that financial solutions like embedded lending are helping SMBs manage cash flow, invest in growth, and improve their overall financial health.\nEmbedded lending allows SMBs to access credit directly within the platforms they already use, such as eCommerce platforms, accounting software or payment processing systems. This eliminates the need for separate applications to banks or other financial institutions, saving time and reducing friction in the borrowing process.\nJennifer Marriner, EVP,\u00a0Global Acceptance Solutions at\u00a0Mastercard, told PYMNTS that SMBs are a\u00a0significant focus within the embedded finance landscape. She noted that SMBs are particularly attracted to\u00a0embedded finance\u00a0as it offers a straightforward way to access financial services through the platforms\u00a0that they\u00a0already use for other business operations, such as accounting and inventory management.\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.\nThe post Small Businesses Tap FinTech Innovations to Close Big Digital Transformation Gap appeared first on PYMNTS.com.", "date_published": "2024-09-05T11:21:58-04:00", "date_modified": "2024-09-05T11:21:58-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/02/SMBs-small-businesses-eCommerce-retail.jpg", "tags": [ "accounts payable", "accounts receivable", "American Express", "B2B", "B2B Payments", "cash flow", "embedded lending", "FinTech", "logistics", "manufacturing", "News", "payment innovations", "payments", "PYMNTS News", "Retail", "small business finance", "SMBs", "software", "Technology", "UNIPaaS", "virtual cards", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2080401", "url": "https://www.pymnts.com/smbs/2024/60-of-small-businesses-struggle-with-cash-flow-management/", "title": "60% of Small Businesses Struggle With Cash Flow Management", "content_html": "In an era where technological advances promise unprecedented efficiency, small and mid-sized businesses (SMBs) contend with a persistent issue: delayed payments. This financial bottleneck, stemming from outdated processes and slow manual systems, threatens the stability and growth potential of SMBs.
\nAs the landscape shifts, a PYMNTS Intelligence report, \u201cEnd the Wait: SMBs and the Protracted Challenge of Delayed Payments,\u201d in conjunction with American Express, poses a question: Could a new wave of digital transformation signal the end of this chronic delay?
\nFor SMBs, delayed payments are not just an inconvenience, but a severe threat to cash flow and operational stability. Nearly one-third of SMBs still rely on manual processes for ad hoc payments, which make up a significant portion of their revenue. BILL\u2019s survey reveals that 46% of SMBs without automated accounts receivable (AR) software consider delinquent payments their top concern.
\nIn the U.K., more than 25% of SMBs face up to \u00a320,000 in overdue invoices, with 36% of payments arriving late monthly. This issue is also prevalent in North America, where less than one-third of SMBs have fully integrated payments into their management software. Ineffective cash flow management, cited by 60% of SMBs as a major challenge, exacerbates the risk of business failure.
\n
Facing manual processing constraints, many SMBs are turning to financial technology (FinTech) solutions. Despite a forecasted 50% surge in payment volumes and a 46% rise in invoicing over the next three years, many SMBs remain saddled with outdated systems.
\nHigh costs and perceived complexity deter more than one-third from adopting automated solutions. But 64% are exploring tailored financial services through integrated software platforms. The shift toward cloud-based services is notable, with more than 80% of SMBs seeking these solutions to overcome inefficiencies.
\nThe adoption of digital tools presents a pivotal opportunity for SMBs to enhance cash management. Currently, 32% of U.S. SMBs are using instant payment methods to expedite transactions, which coupled with increased accounts payable (AP) automation, represents a strategic shift toward streamlined processes.
\nArtificial intelligence (AI) is increasingly integral, with 83% of SMBs leveraging it for data analytics and financial management. Consider 73% are consolidating cash management tools into unified platforms to boost efficiency and gain financial insights.
\nJason Carlson, CFO of Mood Media, underscores the urgency of digital transformation. \u201cTimely payments are crucial for sustaining operations, especially for SMBs that lack financial reserves,\u201d he told PYMNTS Intelligence. Carlson highlighted that outdated payment systems contribute to inefficiencies and errors. He advised SMBs to consider digital solutions, such as direct debit and credit card payments, and to choose banking partners that offer tailored services.
\nEmbracing digital and integrated solutions can transform a critical vulnerability into a strategic asset, positioning SMBs for sustainable growth and success in the digital age. The future of SMBs lies in harnessing the full potential of digital and integrated solutions. By overcoming the challenges of outdated payment systems, SMBs can turn a critical vulnerability into a strategic advantage, positioning themselves for sustainable growth and success in the digital age.
\nThe post 60% of Small Businesses Struggle With Cash Flow Management appeared first on PYMNTS.com.
\n", "content_text": "In an era where technological advances promise unprecedented efficiency, small and mid-sized businesses (SMBs) contend with a persistent issue: delayed payments. This financial bottleneck, stemming from outdated processes and slow manual systems, threatens the stability and growth potential of SMBs.\nAs the landscape shifts, a PYMNTS Intelligence report, \u201cEnd the Wait: SMBs and the Protracted Challenge of Delayed Payments,\u201d in conjunction with American Express, poses a question: Could a new wave of digital transformation signal the end of this chronic delay?\nPerils of Payment Delays\nFor SMBs, delayed payments are not just an inconvenience, but a severe threat to cash flow and operational stability. Nearly one-third of SMBs still rely on manual processes for ad hoc payments, which make up a significant portion of their revenue. BILL\u2019s survey reveals that 46% of SMBs without automated accounts receivable (AR) software consider delinquent payments their top concern.\nIn the U.K., more than 25% of SMBs face up to \u00a320,000 in overdue invoices, with 36% of payments arriving late monthly. This issue is also prevalent in North America, where less than one-third of SMBs have fully integrated payments into their management software. Ineffective cash flow management, cited by 60% of SMBs as a major challenge, exacerbates the risk of business failure.\nFinTechs to the Rescue\n\nFacing manual processing constraints, many SMBs are turning to financial technology (FinTech) solutions. Despite a forecasted 50% surge in payment volumes and a 46% rise in invoicing over the next three years, many SMBs remain saddled with outdated systems.\nHigh costs and perceived complexity deter more than one-third from adopting automated solutions. But 64% are exploring tailored financial services through integrated software platforms. The shift toward cloud-based services is notable, with more than 80% of SMBs seeking these solutions to overcome inefficiencies.\nCash Management: Path Forward\nThe adoption of digital tools presents a pivotal opportunity for SMBs to enhance cash management. Currently, 32% of U.S. SMBs are using instant payment methods to expedite transactions, which coupled with increased accounts payable (AP) automation, represents a strategic shift toward streamlined processes.\nArtificial intelligence (AI) is increasingly integral, with 83% of SMBs leveraging it for data analytics and financial management. Consider 73% are consolidating cash management tools into unified platforms to boost efficiency and gain financial insights.\nJason Carlson, CFO of Mood Media, underscores the urgency of digital transformation. \u201cTimely payments are crucial for sustaining operations, especially for SMBs that lack financial reserves,\u201d he told PYMNTS Intelligence. Carlson highlighted that outdated payment systems contribute to inefficiencies and errors. He advised SMBs to consider digital solutions, such as direct debit and credit card payments, and to choose banking partners that offer tailored services.\nEmbracing digital and integrated solutions can transform a critical vulnerability into a strategic asset, positioning SMBs for sustainable growth and success in the digital age. The future of SMBs lies in harnessing the full potential of digital and integrated solutions. By overcoming the challenges of outdated payment systems, SMBs can turn a critical vulnerability into a strategic advantage, positioning themselves for sustainable growth and success in the digital age.\nThe post 60% of Small Businesses Struggle With Cash Flow Management appeared first on PYMNTS.com.", "date_published": "2024-09-04T04:00:12-04:00", "date_modified": "2024-09-03T17:32:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/small-business-cash-management.jpg", "tags": [ "Ad Hoc Payments", "automation", "cash flow management", "delayed payments", "digital transformation", "Featured News", "FinTechs", "Jason Carlson", "Mood Media", "News", "PYMNTS Intelligence", "PYMNTS News", "small businesses", "SMBs", "The Data Point" ] }, { "id": "https://www.pymnts.com/?p=2079603", "url": "https://www.pymnts.com/smbs/2024/amex-and-unipaas-team-on-small-business-invoice-payments/", "title": "Amex and UNIPaaS Team on Small Business Invoice Payments", "content_html": "Payment-as-a-Service provider UNIPaaS has launched a small-business-focused invoice payments partnership with American Express.
\nThe collaboration, announced by the London-based UNIPaaS Tuesday (Sept. 3), will let small- to medium-sized businesses (SMBs), give customers the option of paying invoices with American Express (Amex) Cards through the UNIPaaS platform.
\n\u201cCustomer behavior shows that when payment options like American Express are offered, a significant share of customers choose this payment method, thereby increasing the speed and efficiency of business invoice payments,\u201d the company said in a news release.
\nThe release noted that UNIPaaS has processed millions of card transactions along with other payment methods for a range of B2B clients, optimizing its solutions for the needs of Software-as-a-Service (SaaS) platforms in industries such as HealthTech, accounting, education and mobility.
\n\u201cThis new partnership enables users of these SaaS platforms to easily accept American Express payments, catering to the many customers that prefer to pay with Amex,\u201d the release added. \u201cThis integration simplifies the payment process, improves cash flow management, and enhances overall payment convenience and efficiency.\u201d
\nPYMNTS spoke last month with Brett Sussman, American Express vice president of marketing, business blueprint and small business, about the challenges SMBs face in integrating digital payment options.
\n\u201cSmall business owners are using a variety of solutions,\u201d he said. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution.\u201d
\nWhile research by Amex and PYMNTS Intelligence found that a majority of SMBs want to consolidate their financial solutions into a single platform, many still rely on manual, analog-era cash management tools and processes.
\n\u201cIf you look back all the way to 2010, 67% of small business payments were made on cash or check or wire,\u201d Sussman said. \u201cYou fast forward to 2022 and that number is 33% of payments. So really, the digitization of payments has taken off. But I would argue there is plenty of progress that still needs to be made,\u201d
\nIn other recent SMB news, PYMNTS wrote last week that these businesses are widely using instant payments across a variety of sectors. And for many SMBs, this has become their chief method of sending payments.
\nResearch by PYMNTS Intelligence into four sectors \u2014 healthcare, hospitality, restaurant and transportation \u2014 shows that at least two-thirds of SMBs now send instant payments. In fact, roughly a quarter of these businesses point to an instant method as their most-used when sending payments.
\nThe post Amex and UNIPaaS Team on Small Business Invoice Payments appeared first on PYMNTS.com.
\n", "content_text": "Payment-as-a-Service provider UNIPaaS has launched a small-business-focused invoice payments partnership with American Express.\nThe collaboration, announced by the London-based UNIPaaS Tuesday (Sept. 3), will let small- to medium-sized businesses (SMBs), give customers the option of paying invoices with American Express (Amex) Cards through the UNIPaaS platform.\n\u201cCustomer behavior shows that when payment options like American Express are offered, a significant share of customers choose this payment method, thereby increasing the speed and efficiency of business invoice payments,\u201d the company said in a news release.\nThe release noted that UNIPaaS has processed millions of card transactions along with other payment methods for a range of B2B clients, optimizing its solutions for the needs of Software-as-a-Service (SaaS) platforms in industries such as HealthTech, accounting, education and mobility.\n\u201cThis new partnership enables users of these SaaS platforms to easily accept American Express payments, catering to the many customers that prefer to pay with Amex,\u201d the release added. \u201cThis integration simplifies the payment process, improves cash flow management, and enhances overall payment convenience and efficiency.\u201d\nPYMNTS spoke last month with Brett Sussman, American Express vice president of marketing, business blueprint and small business, about the challenges SMBs face in integrating digital payment options.\n\u201cSmall business owners are using a variety of solutions,\u201d he said. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution.\u201d\nWhile research by Amex and PYMNTS Intelligence found that a majority of SMBs want to consolidate their financial solutions into a single platform, many still rely on manual, analog-era cash management tools and processes.\n\u201cIf you look back all the way to 2010, 67% of small business payments were made on cash or check or wire,\u201d Sussman said. \u201cYou fast forward to 2022 and that number is 33% of payments. So really, the digitization of payments has taken off. But I would argue there is plenty of progress that still needs to be made,\u201d\nIn other recent SMB news, PYMNTS wrote last week that these businesses are widely using instant payments across a variety of sectors. And for many SMBs, this has become their chief method of sending payments.\nResearch by PYMNTS Intelligence into four sectors \u2014 healthcare, hospitality, restaurant and transportation \u2014 shows that at least two-thirds of SMBs now send instant payments. In fact, roughly a quarter of these businesses point to an instant method as their most-used when sending payments.\nThe post Amex and UNIPaaS Team on Small Business Invoice Payments appeared first on PYMNTS.com.", "date_published": "2024-09-03T11:35:33-04:00", "date_modified": "2024-09-03T23:00:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/SMBs-invoice-payments-Amex-UNIPaaS.jpg", "tags": [ "American Express", "Amex", "B2B", "B2B Payments", "commercial payments", "invoice payments", "News", "partnerships", "Payment Methods", "Payments as a Service", "PYMNTS News", "small businesses", "SMBs", "UNIPaaS", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2078567", "url": "https://www.pymnts.com/smbs/2024/application-frictions-slow-australians-from-adopting-embedded-lending/", "title": "Application Frictions Slow Australians From Adopting Embedded Lending", "content_html": "Embedded lending is growing in popularity around the world. It offers convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This proves especially impactful for individuals and microbusinesses and small businesses (MSBs) that want to better align cash flow and expenses.
\nIn Australia, 13% of consumers and 11% of MSBs have recently used embedded lending, with much greater adoption among key segments. For example, 20% of millennial consumers have recently used this type of lending, as have 26% of small businesses.
\nHowever, embedded lending users widely experience friction that detracts from their experience. The biggest problem area is the application process. PYMNTS Intelligence\u2019s research reveals other friction points that lenders need to address to enable this type of lending to reach its potential.
\n\u201cThe Embedded Lending Opportunity: Australia Edition,\u201d a PYMNTS Intelligence report commissioned by Visa, explores the state of play in Australia for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15, 2024.
\nOur research reveals that interest in this type of lending is strong in Australia. Lenders should reconsider their hesitations about developing embedded lending products.
\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what\u2019s next in Australia.
\nThe post Application Frictions Slow Australians From Adopting Embedded Lending appeared first on PYMNTS.com.
\n", "content_text": "Download the Data Brief\n \n The Embedded Lending Opportunity: Australia Edition\n \n \n \n \n \n \n [contact-form-7]\n \n \n \n \n \n\nEmbedded lending is growing in popularity around the world. It offers convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This proves especially impactful for individuals and microbusinesses and small businesses (MSBs) that want to better align cash flow and expenses.\nIn Australia, 13% of consumers and 11% of MSBs have recently used embedded lending, with much greater adoption among key segments. For example, 20% of millennial consumers have recently used this type of lending, as have 26% of small businesses.\nHowever, embedded lending users widely experience friction that detracts from their experience. The biggest problem area is the application process. PYMNTS Intelligence\u2019s research reveals other friction points that lenders need to address to enable this type of lending to reach its potential.\n\u201cThe Embedded Lending Opportunity: Australia Edition,\u201d a PYMNTS Intelligence report commissioned by Visa, explores the state of play in Australia for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15, 2024.\nInside \u201cThe Embedded Lending Opportunity: Australia Edition\u201d:\n\nWhat this type of lending is and how it differs from traditional lending products\nHow the market in Australia compares to those in other major economies\nWhich consumers and businesses are more likely to use this type of lending\nThe critical role of cash flow stability in predicting demand\nThe pain points consumers and MSBs experience when using this type of lending\nThe obstacles that lenders in Australia face in rolling out these products\nThe factors that predict how likely a consumer or MSB is to switch to a provider that offers this type of lending\n\nOur research reveals that interest in this type of lending is strong in Australia. Lenders should reconsider their hesitations about developing embedded lending products.\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what\u2019s next in Australia.\nThe post Application Frictions Slow Australians From Adopting Embedded Lending appeared first on PYMNTS.com.", "date_published": "2024-09-03T04:03:25-04:00", "date_modified": "2024-09-02T22:35:36-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/embedded-lending-finance-australia.jpg", "tags": [ "business growth", "cash flow", "consumer lending", "embedded finance", "embedded lending", "Featured News", "Microbusinesses", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "small businesses", "SMBs", "Visa" ] }, { "id": "https://www.pymnts.com/?p=2068066", "url": "https://www.pymnts.com/smbs/2024/citigroup-aims-double-commercial-banking-revenue-targeting-small-businesses/", "title": "Citigroup Aims to Double Commercial Banking Revenue by Targeting Small Businesses", "content_html": "Citigroup is reportedly looking to increase its revenue by adding smaller clients.
\nTraditionally known for serving only the largest clients, the bank has expanded its focus to include small- to medium-sized businesses (SMBs) with annual revenues between $10 million and $3 billion, the Financial Times (FT) reported Wednesday (Aug. 28).
\nCitigroup is targeting SMBs around the world, according to the report. Over the past two years, it has added commercial lending units dedicated to SMBs in Canada, France, Germany, Ireland, Japan and Switzerland.
\nIn other efforts to boost its focus on SMBs, the bank named a half dozen new regional leaders and bought a stake in FinTech company Numerated to use that company\u2019s machine learning models to manage the bank\u2019s loan data, the report said.
\nCitigroup\u2019s efforts in pursuing SMBs have been helped by its reorganization, which it said will enable it to do a better job of cross-selling; by regional banks being pressured by high interest rates and commercial property losses, which have limited their ability to lend; and by the increasing importance of technology in business lending, which favors larger banks that have the resources to meet that need, per the report.
\nWhile commercial banking clients now account for only $3 billion of Citigroup\u2019s total annual revenue of $80 billion, the bank said it can double the size of that business by adding SMBs, according to the report.
\nTasnim Ghiawadwala, global head of commercial bank at Citi, told the FT that with only a small investment, the bank can gain incremental revenue by providing its mid-sized corporate clients with the same services it provides to large companies.
\nSmall businesses have often struggled to get financing, as banks generally favor bigger commercial borrowers.
\nThe Small Business Administration (SBA) reported in 2023 that during the previous fiscal year, $8 billion worth of potential SBA loans went unused. While the SBA is authorized to guarantee up to $34 billion in loans each year, lenders issued $26 billion of loans during the year.
\nOne-third of Main Street business owners surveyed said loan costs remain a concern in 2024, according to the PYMNTS Intelligence report \u201cSMB Borrowing Dynamics: Trends, Tools and Decision Drivers.\u201d
\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
\nThe post Citigroup Aims to Double Commercial Banking Revenue by Targeting Small Businesses appeared first on PYMNTS.com.
\n", "content_text": "Citigroup is reportedly looking to increase its revenue by adding smaller clients.\nTraditionally known for serving only the largest clients, the bank has expanded its focus to include small- to medium-sized businesses (SMBs) with annual revenues between $10 million and $3 billion, the Financial Times (FT) reported Wednesday (Aug. 28).\nCitigroup is targeting SMBs around the world, according to the report. Over the past two years, it has added commercial lending units dedicated to SMBs in Canada, France, Germany, Ireland, Japan and Switzerland.\nIn other efforts to boost its focus on SMBs, the bank named a half dozen new regional leaders and bought a stake in FinTech company Numerated to use that company\u2019s machine learning models to manage the bank\u2019s loan data, the report said.\nCitigroup\u2019s efforts in pursuing SMBs have been helped by its reorganization, which it said will enable it to do a better job of cross-selling; by regional banks being pressured by high interest rates and commercial property losses, which have limited their ability to lend; and by the increasing importance of technology in business lending, which favors larger banks that have the resources to meet that need, per the report.\nWhile commercial banking clients now account for only $3 billion of Citigroup\u2019s total annual revenue of $80 billion, the bank said it can double the size of that business by adding SMBs, according to the report.\nTasnim Ghiawadwala, global head of commercial bank at Citi, told the FT that with only a small investment, the bank can gain incremental revenue by providing its mid-sized corporate clients with the same services it provides to large companies.\nSmall businesses have often struggled to get financing, as banks generally favor bigger commercial borrowers.\nThe Small Business Administration (SBA) reported in 2023 that during the previous fiscal year, $8 billion worth of potential SBA loans went unused. While the SBA is authorized to guarantee up to $34 billion in loans each year, lenders issued $26 billion of loans during the year.\nOne-third of Main Street business owners surveyed said loan costs remain a concern in 2024, according to the PYMNTS Intelligence report \u201cSMB Borrowing Dynamics: Trends, Tools and Decision Drivers.\u201d\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.\nThe post Citigroup Aims to Double Commercial Banking Revenue by Targeting Small Businesses appeared first on PYMNTS.com.", "date_published": "2024-08-28T11:03:21-04:00", "date_modified": "2024-08-28T11:03:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/09/Citigroup-1.jpg", "tags": [ "B2B", "B2B Payments", "banking", "Banks", "Citigroup", "commercial payments", "Lending", "loans", "News", "PYMNTS News", "Revenue", "SMBs", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2065516", "url": "https://www.pymnts.com/smbs/2024/sezzle-teams-with-liberis-small-business-funding-program/", "title": "Sezzle Teams With Liberis on Small Business Funding Program", "content_html": "Buy now, pay later (BNPL) firm Sezzle and embedded finance platform Liberis teamed to help American small businesses get funded.
\nThe partnership is centered around Sezzle Capital, designed to help small- to medium-sized businesses (SMBs) get financing without sacrificing equity, according to a Wednesday (Aug. 28) press release.
\nThe program is designed to offer \u201cflexible funding\u201d to SMBs in the United States, and there are plans to eventually launch in Canada. Sezzle Capital will enable these firms to access capital for a range of business purposes at a time when most SMBs are worried about finding funding.
\n\u201cAs we expand across the United States and Canada, we choose to work with partners who are preferred and trusted by small businesses,\u201d said Liberis CEO Rob Straathof. \u201cWorking with Sezzle allows us to serve both their early-stage and mature business customers with fast and flexible funding through our platform.\u201d
\nAccess to working capital isn\u2019t just a matter of convenience for SMBs, but a necessity.
\n\u201cIt underpins their ability to manage daily operations, respond to challenges, and seize growth opportunities,\u201d PYMNTS wrote this month. \u201cWithout it, even a profitable business can struggle to survive, especially in today\u2019s fast-paced and often unpredictable economic environment.\u201d
\nA look at the U.S. government\u2019s Small Business Administration (SBA) website illustrates this point, with the agency expecting substantial demand for its Working Capital Pilot (WCP) program, especially as many SMBs face challenges accessing traditional working capital loans.
\nFor 2025 alone, the SBA project will approve around 270 WCP loans adding up to $337 million. The agency said half of that volume will be from loans that would have otherwise been approved as an SBA 7(a) Export Working Capital Program loan or SBA 7(a) CAPLines loan, and the other half will be new volume.
\nAbout 8.5% of SMBs said working capital loans from banks are readily available, according to the PYMNTS Intelligence report \u201cWhat\u2019s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing.\u201d
\n\u201cMore than half of respondents said coming into 2024 that they would consider tapping new financing,\u201d PYMNTS wrote. \u201cAmong those considering new financing, more than 26% would consider using an online lender and about a third would use a large national bank.\u201d
\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
\nThe post Sezzle Teams With Liberis on Small Business Funding Program appeared first on PYMNTS.com.
\n", "content_text": "Buy now, pay later (BNPL) firm Sezzle and embedded finance platform Liberis teamed to help American small businesses get funded.\nThe partnership is centered around Sezzle Capital, designed to help small- to medium-sized businesses (SMBs) get financing without sacrificing equity, according to a Wednesday (Aug. 28) press release.\nThe program is designed to offer \u201cflexible funding\u201d to SMBs in the United States, and there are plans to eventually launch in Canada. Sezzle Capital will enable these firms to access capital for a range of business purposes at a time when most SMBs are worried about finding funding.\n\u201cAs we expand across the United States and Canada, we choose to work with partners who are preferred and trusted by small businesses,\u201d said Liberis CEO Rob Straathof. \u201cWorking with Sezzle allows us to serve both their early-stage and mature business customers with fast and flexible funding through our platform.\u201d\nAccess to working capital isn\u2019t just a matter of convenience for SMBs, but a necessity.\n\u201cIt underpins their ability to manage daily operations, respond to challenges, and seize growth opportunities,\u201d PYMNTS wrote this month. \u201cWithout it, even a profitable business can struggle to survive, especially in today\u2019s fast-paced and often unpredictable economic environment.\u201d\nA look at the U.S. government\u2019s Small Business Administration (SBA) website illustrates this point, with the agency expecting substantial demand for its Working Capital Pilot (WCP) program, especially as many SMBs face challenges accessing traditional working capital loans.\nFor 2025 alone, the SBA project will approve around 270 WCP loans adding up to $337 million. The agency said half of that volume will be from loans that would have otherwise been approved as an SBA 7(a) Export Working Capital Program loan or SBA 7(a) CAPLines loan, and the other half will be new volume.\nAbout 8.5% of SMBs said working capital loans from banks are readily available, according to the PYMNTS Intelligence report \u201cWhat\u2019s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing.\u201d\n\u201cMore than half of respondents said coming into 2024 that they would consider tapping new financing,\u201d PYMNTS wrote. \u201cAmong those considering new financing, more than 26% would consider using an online lender and about a third would use a large national bank.\u201d\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.\nThe post Sezzle Teams With Liberis on Small Business Funding Program appeared first on PYMNTS.com.", "date_published": "2024-08-28T08:29:41-04:00", "date_modified": "2024-08-28T08:29:41-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Liberis-Sezzle-Capital-SMBs.png", "tags": [ "B2B", "B2B Payments", "commercial payments", "embedded finance", "Lending", "Liberis", "loans", "News", "partnerships", "PYMNTS News", "sezzle", "Sezzle Capital", "SMBs", "What's Hot", "What's Hot In B2B", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2062709", "url": "https://www.pymnts.com/smbs/2024/the-top-3-benefits-small-businesses-get-from-ai/", "title": "The Top 3 Benefits Small Businesses Get From AI", "content_html": "Growth is essential for all businesses, especially the small ones.
\nArtificial intelligence (AI) is one tool that can help firms achieve that by giving them a competitive edge, streamlining thier operations and enhancing customer experiences. For instance,\u00a0GoDaddy on Tuesday (Aug. 20) launched a new generative AI tool to help small- t0 medium-sized businesses (SMBs) with their business marketing.
\n\u201cWe know that digital marketing translates to business success, especially when coupled with generative AI technology,\u201d GoDaddy said in a statement.
\nAI is no longer just the domain of large corporations with deep pockets and extensive tech teams. However, the ways that Main Street SMBs can unlock growth through strategic applications of AI looks a little different from the approaches being taken by their larger enterprise counterparts.
\nSmaller businesses are not just playing catch-up, though. From better access to working capital, to marketing and workflow automation, SMBs are leveraging AI in ways that are uniquely suited to their scale and operations.
\nIn contrast to large enterprises, which might use AI to optimize global supply chains, SMBs are applying AI at a more localized level. A small auto repair shop, for instance, might use AI to predict which parts will be needed most frequently based on historical data, reducing the need for large inventories and ensuring that commonly needed parts are always in stock. Similarly, a local retail store could use AI to optimize staffing schedules based on customer foot traffic patterns, ensuring that they have the right number of employees at the right times.
\nThe key to success for SMBs will be in how they choose to implement and integrate AI into their business models. By focusing on applications that align with their unique needs and strengths, Main Street businesses can use AI to drive growth in ways that are both sustainable and impactful, distinguishing themselves from larger competitors in the process.
\nRead more: SMBs Race to Critical Mass on AI Usage
\nSMBs, which typically include local retailers, restaurants, service providers and smaller manufacturers, face a different set of challenges and opportunities compared to large enterprises. These businesses often operate with limited resources, both in terms of capital and workforce, and are more deeply embedded in their local communities.
\nThis local focus, coupled with a need for efficiency and personalization, has led SMBs to adopt AI in ways that are distinct from the large-scale, data-intensive implementations seen in bigger companies.
\nFor small businesses, operational efficiency is critical to success. AI tools can automate routine and time-consuming tasks, such as data entry, inventory management and customer support. By automating these processes, small businesses can reduce the need for manual labor, minimize human errors and free up employees to focus on more strategic activities.
\n\u201cSmall business owners are using a\u00a0variety of solutions. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution,\u201d\u00a0American Express Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman told PYMNTS in an interview posted Aug. 15.
\nRecent research by PYMNTS Intelligence shows that\u00a096% of SMBs that have used AI tools \u2014 though not necessarily generative AI \u2014 view it as an effective way to streamline tasks.
\nRead more: White House Working Capital Program Targets Small Business Stability Through 2027
\nSMBs benefit from the ability to quickly adopt AI tools that are specifically tailored to their needs. Unlike large enterprises that may require extensive customization and integration, many AI solutions for SMBs are designed to be plug-and-play, offering ease of use and quick deployment. This flexibility allows SMBs to experiment with different AI applications without significant upfront investment.
\nAI can help small businesses implement personalized marketing campaigns that resonate with specific customer segments, leading to higher engagement and conversion rates. AI-powered recommendation engines can suggest products or services based on a customer\u2019s past behavior, increasing the likelihood of repeat purchases. Additionally, AI can enhance customer service by providing real-time support and predictive insights that anticipate customer needs before they even ask for help.
\nThis is supported by findings revealed in \u201cInnovators and Cost Cutters: Growth Strategies for SMBs,\u201d a PYMNTS Intelligence report, which show that while 37% of SMBs on average use AI, 51% of those with increasing revenues use it. Businesses with increasing revenues, and those generating more than $1 million in revenue, are twice as likely to use AI as ones with decreasing or stable revenues.
\nSMBs with fewer resources appear to be less likely to understand the benefits of using AI, as 69% of those with decreasing revenues say they have never considered using it, per the report.
\nAI is also transforming how small businesses access working capital, offering more tailored, efficient and accessible financing options. For example, on Wednesday(Aug. 21), Lama AI and\u00a0Bridge partnered to expand the availability of\u00a0commercial loans. Financial institutions using Lama\u2019s AI-powered origination technology will be able to access Bridge\u2019s marketplace that connects business owners and lenders.
\nAI-driven algorithms can analyze a broader set of data points, including non-traditional metrics such as transaction history, social media activity and customer reviews, to evaluate an SMB\u2019s creditworthiness.
\nThe post The Top 3 Benefits Small Businesses Get From AI appeared first on PYMNTS.com.
\n", "content_text": "Growth is essential for all businesses, especially the small ones.\nArtificial intelligence (AI) is one tool that can help firms achieve that by giving them a competitive edge, streamlining thier operations and enhancing customer experiences. For instance,\u00a0GoDaddy on Tuesday (Aug. 20) launched a new generative AI tool to help small- t0 medium-sized businesses (SMBs) with their business marketing.\n\u201cWe know that digital marketing translates to business success, especially when coupled with generative AI technology,\u201d GoDaddy said in a statement.\nAI is no longer just the domain of large corporations with deep pockets and extensive tech teams. However, the ways that Main Street SMBs can unlock growth through strategic applications of AI looks a little different from the approaches being taken by their larger enterprise counterparts.\nSmaller businesses are not just playing catch-up, though. From better access to working capital, to marketing and workflow automation, SMBs are leveraging AI in ways that are uniquely suited to their scale and operations.\nIn contrast to large enterprises, which might use AI to optimize global supply chains, SMBs are applying AI at a more localized level. A small auto repair shop, for instance, might use AI to predict which parts will be needed most frequently based on historical data, reducing the need for large inventories and ensuring that commonly needed parts are always in stock. Similarly, a local retail store could use AI to optimize staffing schedules based on customer foot traffic patterns, ensuring that they have the right number of employees at the right times.\nThe key to success for SMBs will be in how they choose to implement and integrate AI into their business models. By focusing on applications that align with their unique needs and strengths, Main Street businesses can use AI to drive growth in ways that are both sustainable and impactful, distinguishing themselves from larger competitors in the process.\nRead more: SMBs Race to Critical Mass on AI Usage\nThe Future of AI for Main Street SMBs\nSMBs, which typically include local retailers, restaurants, service providers and smaller manufacturers, face a different set of challenges and opportunities compared to large enterprises. These businesses often operate with limited resources, both in terms of capital and workforce, and are more deeply embedded in their local communities.\nThis local focus, coupled with a need for efficiency and personalization, has led SMBs to adopt AI in ways that are distinct from the large-scale, data-intensive implementations seen in bigger companies.\nFor small businesses, operational efficiency is critical to success. AI tools can automate routine and time-consuming tasks, such as data entry, inventory management and customer support. By automating these processes, small businesses can reduce the need for manual labor, minimize human errors and free up employees to focus on more strategic activities.\n\u201cSmall business owners are using a\u00a0variety of solutions. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution,\u201d\u00a0American Express Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman told PYMNTS in an interview posted Aug. 15.\nRecent research by PYMNTS Intelligence shows that\u00a096% of SMBs that have used AI tools \u2014 though not necessarily generative AI \u2014 view it as an effective way to streamline tasks.\nRead more: White House Working Capital Program Targets Small Business Stability Through 2027\nAI-Driven Marketing for Main Street SMBs\nSMBs benefit from the ability to quickly adopt AI tools that are specifically tailored to their needs. Unlike large enterprises that may require extensive customization and integration, many AI solutions for SMBs are designed to be plug-and-play, offering ease of use and quick deployment. This flexibility allows SMBs to experiment with different AI applications without significant upfront investment.\nAI can help small businesses implement personalized marketing campaigns that resonate with specific customer segments, leading to higher engagement and conversion rates. AI-powered recommendation engines can suggest products or services based on a customer\u2019s past behavior, increasing the likelihood of repeat purchases. Additionally, AI can enhance customer service by providing real-time support and predictive insights that anticipate customer needs before they even ask for help.\nThis is supported by findings revealed in \u201cInnovators and Cost Cutters: Growth Strategies for SMBs,\u201d a PYMNTS Intelligence report, which show that while 37% of SMBs on average use AI, 51% of those with increasing revenues use it. Businesses with increasing revenues, and those generating more than $1 million in revenue, are twice as likely to use AI as ones with decreasing or stable revenues.\nSMBs with fewer resources appear to be less likely to understand the benefits of using AI, as 69% of those with decreasing revenues say they have never considered using it, per the report.\nAI is also transforming how small businesses access working capital, offering more tailored, efficient and accessible financing options. For example, on Wednesday(Aug. 21), Lama AI and\u00a0Bridge partnered to expand the availability of\u00a0commercial loans. Financial institutions using Lama\u2019s AI-powered origination technology will be able to access Bridge\u2019s marketplace that connects business owners and lenders.\nAI-driven algorithms can analyze a broader set of data points, including non-traditional metrics such as transaction history, social media activity and customer reviews, to evaluate an SMB\u2019s creditworthiness.\nThe post The Top 3 Benefits Small Businesses Get From AI appeared first on PYMNTS.com.", "date_published": "2024-08-22T18:59:14-04:00", "date_modified": "2024-08-25T21:56:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/SMBs-small-businesses-AI-artificial-intelligence.png", "tags": [ "advertising", "AI", "artificial intelligence", "B2B", "B2B Payments", "commercial payments", "Corporate Financing", "financing", "GoDaddy", "Main Street", "marketing", "News", "Product Discovery", "PYMNTS News", "Retail", "small businesses", "SMBs", "spend management", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2055803", "url": "https://www.pymnts.com/smbs/2024/embedded-finance-catches-on-with-credit-shy-japanese-consumers/", "title": "Embedded Finance Catches On With Credit-Shy Japanese Consumers", "content_html": "Embedded lending is growing in popularity around the globe. It offers users convenient, streamlined access to financing without having to leave the platforms of merchants, businesses and other entities. This type of modern lending could be especially useful to microbusinesses and small businesses (MSBs) wanting to align their cash flow and expenses.
\nIn Japan, however, consumers and MSBs tend to be cautious about and even adverse to using credit compared to other markets. This extends to embedded lending. Just 8.1% of the country\u2019s consumers have used it in the last three months. MSBs were even more conservative, with just 5.3% having used it in the last year.
\nConsidering the low credit use rates in Japan, these seemingly small shares of embedded lending adoption actually reflect significant momentum for these solutions. Yet, to drive further adoption, lenders will need to overcome some key frictions.
\n\u201c\u201cThe Embedded Lending Opportunity: Japan Edition,\u201d a PYMNTS Intelligence report commissioned by Visa, explores the state of play for embedded lending in Japan for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.
\nEmbedded lending offers consumers and MSBs a highly convenient way to finance purchases without dealing with separate credit applications. Despite Japan\u2019s historical hesitance around using credit, this type of lending has clear growth potential in the country.
\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Lenders that can address pain points stand to profit. Download the report to learn more about what\u2019s next for this type of lending in the Japanese market.
\nThe post Embedded Finance Catches On With Credit-Shy Japanese Consumers appeared first on PYMNTS.com.
\n", "content_text": "Download the Data Brief\n \n The Embedded Lending Opportunity: Japan Edition\n \n \n \n \n \n \n [contact-form-7]\n \n \n \n \n \n\nEmbedded lending is growing in popularity around the globe. It offers users convenient, streamlined access to financing without having to leave the platforms of merchants, businesses and other entities. This type of modern lending could be especially useful to microbusinesses and small businesses (MSBs) wanting to align their cash flow and expenses.\nIn Japan, however, consumers and MSBs tend to be cautious about and even adverse to using credit compared to other markets. This extends to embedded lending. Just 8.1% of the country\u2019s consumers have used it in the last three months. MSBs were even more conservative, with just 5.3% having used it in the last year.\nConsidering the low credit use rates in Japan, these seemingly small shares of embedded lending adoption actually reflect significant momentum for these solutions. Yet, to drive further adoption, lenders will need to overcome some key frictions.\n\u201c\u201cThe Embedded Lending Opportunity: Japan Edition,\u201d a PYMNTS Intelligence report commissioned by Visa, explores the state of play for embedded lending in Japan for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.\nInside \u201cThe Embedded Lending Opportunity: Japan Edition\u201d:\n\nWhat embedded lending is and how it differs from embedded finance\nHow the market in Japan compares to other major world economies\nWhich consumers and businesses in Japan are more likely to use it\nThe role of cash flow stability in predicting whether a consumer or MSB will use it\nThe frictions and pain points consumers and MSBs experience when using it\nThe factors that predict how likely a consumer or MSB is to switch to a provider that offers these solutions\nThe factors that lenders in Japan consider impediments to offering it\n\nEmbedded lending offers consumers and MSBs a highly convenient way to finance purchases without dealing with separate credit applications. Despite Japan\u2019s historical hesitance around using credit, this type of lending has clear growth potential in the country.\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Lenders that can address pain points stand to profit. Download the report to learn more about what\u2019s next for this type of lending in the Japanese market.\nThe post Embedded Finance Catches On With Credit-Shy Japanese Consumers appeared first on PYMNTS.com.", "date_published": "2024-08-21T04:00:47-04:00", "date_modified": "2024-08-20T21:28:11-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/embedded-lending-opportunity-japan.jpg", "tags": [ "business growth", "cash flow", "embedded finance", "embedded lending", "Main Feature", "Microbusinesses", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "small businesses", "SMBs", "Visa" ] }, { "id": "https://www.pymnts.com/?p=2053410", "url": "https://www.pymnts.com/smbs/2024/white-house-working-capital-program-targets-small-business-stability-through-2027/", "title": "White House Working Capital Program Targets Small Business Stability Through 2027", "content_html": "Access to working capital is critical for the survival and growth of small businesses.
\nAnd with the news from the National Federation of Independent Business (NFIB)\u00a0Small Business Optimism Index\u00a0released Tuesday (Aug. 13) that \u2014 despite ongoing cost pressures and macro headwinds \u2014 small and medium-sized businesses (SMBs) in the U.S. are feeling the highest level of optimism since February 2022, delivering the working capital\u00a0products and financial services they need to thrive is top of mind for savvy lenders and financial players.
\nBut it\u2019s not just private sector players excited to capture the SMB opportunity while spurring Main Street growth. The U.S. government\u2019s Small Business Administration (SBA) is getting into the mix, too.
\nOn Aug. 1, the SBA launched a new category of loan under the SBA 7(a) Loan umbrella, the Working Capital Pilot (WCP) Program. The SBA WCP loan program is designed to provide small businesses with more flexible and accessible lines of credit and plans to address the needs of growth-oriented businesses that require working capital to fund projects or manage cash flow.
\nSmall businesses often face irregular cash flow, where their income might not align with expenses. Working capital helps bridge the gap, ensuring that they can pay bills, purchase inventory, and meet payroll even during lean periods.
\nComments for the program closed Wednesday (Aug. 14), and the WCP will run at least until the initial end of the authorization period, set for July 31, 2027.
\nRead more: White House Ramps Up Small Business Working Capital Offerings
\nFor small businesses, access to working capital is not just a matter of convenience; it\u2019s a necessity. It underpins their ability to manage daily operations, respond to challenges, and seize growth opportunities. Without it, even a profitable business can struggle to survive, especially in today\u2019s fast-paced and often unpredictable economic environment.
\nThe SBA\u2019s site stresses that the agency expects significant demand for its WCP program, especially given that many small businesses face challenges accessing traditional working capital loans.
\nFor 2025 alone, the SBA estimates it will approve approximately 270 WCP loans totaling $337 million. Half of that volume will be from loans that would have otherwise been approved as an SBA 7(a) Export Working Capital Program loan or SBA 7(a) CAPLines loan, and the other half will be new volume, per the agency.
\nBy participating in the program, the SBA notes that lenders can offer competitively priced lines of credit, helping small businesses expand, strengthening their operations and ultimately create more jobs.
\nOnly about 8.5% of\u00a0small and medium-sized businesses\u00a0(SMBs) have found working capital loans from banks to be readily available, according to \u201cWhat\u2019s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing,\u201d a PYMNTS Intelligence and\u00a0Cross River\u00a0collaboration.
\nMore than half of respondents said coming into 2024 that they would consider tapping new financing. Among those considering new financing, more than 26% would consider using an online lender and about a third would use a large national bank.
\nSee also:\u00a0Embedded Lending Puts SMBs at\u00a0Center\u00a0of Financial Services Landscape
\nAccording to the SBA, the agency\u2019s own evaluation of the working capital program\u2019s success will include, but will not necessarily be limited to, the number of WCP loans approved, the adoption rate (number of lenders making WCP loans), a comparison of number of loans approved and adoption rate versus the same in 7(a) CAPLine and EWCP programs and among the top SBA Lenders, whether the costs (including losses) of the pilot are within an acceptable range, and portfolio performance as it relates to other 7(a) programs.
\n\u201cSmall business owners are using a variety of solutions. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution,\u201d\u00a0American Express\u00a0Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman\u00a0told PYMNTS in an interview posted Thursday (Aug. 15).
\nAnd as covered here, the SMB lending market is heating up \u2014 with the most recent earnings season revealing that companies are increasingly focused on the segment.
\nThe demand comes as the PYMNTS Intelligence report \u201cMain Street Small Business Growth Exceeds GDP for First Time in Two Years\u201d found Main Street small and medium-sized business (SMB) growth has exceeded gross domestic product (GDP) growth for the first time in two years. That expansion would feed into plans to tap working capital to keep expanding.
\nThe post White House Working Capital Program Targets Small Business Stability Through 2027 appeared first on PYMNTS.com.
\n", "content_text": "Access to working capital is critical for the survival and growth of small businesses.\nAnd with the news from the National Federation of Independent Business (NFIB)\u00a0Small Business Optimism Index\u00a0released Tuesday (Aug. 13) that \u2014 despite ongoing cost pressures and macro headwinds \u2014 small and medium-sized businesses (SMBs) in the U.S. are feeling the highest level of optimism since February 2022, delivering the working capital\u00a0products and financial services they need to thrive is top of mind for savvy lenders and financial players.\nBut it\u2019s not just private sector players excited to capture the SMB opportunity while spurring Main Street growth. The U.S. government\u2019s Small Business Administration (SBA) is getting into the mix, too.\nOn Aug. 1, the SBA launched a new category of loan under the SBA 7(a) Loan umbrella, the Working Capital Pilot (WCP) Program. The SBA WCP loan program is designed to provide small businesses with more flexible and accessible lines of credit and plans to address the needs of growth-oriented businesses that require working capital to fund projects or manage cash flow.\nSmall businesses often face irregular cash flow, where their income might not align with expenses. Working capital helps bridge the gap, ensuring that they can pay bills, purchase inventory, and meet payroll even during lean periods.\nComments for the program closed Wednesday (Aug. 14), and the WCP will run at least until the initial end of the authorization period, set for July 31, 2027.\nRead more: White House Ramps Up Small Business Working Capital Offerings\nBuilding a Competitive Edge With Working Capital Innovations\nFor small businesses, access to working capital is not just a matter of convenience; it\u2019s a necessity. It underpins their ability to manage daily operations, respond to challenges, and seize growth opportunities. Without it, even a profitable business can struggle to survive, especially in today\u2019s fast-paced and often unpredictable economic environment.\nThe SBA\u2019s site stresses that the agency expects significant demand for its WCP program, especially given that many small businesses face challenges accessing traditional working capital loans.\nFor 2025 alone, the SBA estimates it will approve approximately 270 WCP loans totaling $337 million. Half of that volume will be from loans that would have otherwise been approved as an SBA 7(a) Export Working Capital Program loan or SBA 7(a) CAPLines loan, and the other half will be new volume, per the agency.\nBy participating in the program, the SBA notes that lenders can offer competitively priced lines of credit, helping small businesses expand, strengthening their operations and ultimately create more jobs.\nOnly about 8.5% of\u00a0small and medium-sized businesses\u00a0(SMBs) have found working capital loans from banks to be readily available, according to \u201cWhat\u2019s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing,\u201d a PYMNTS Intelligence and\u00a0Cross River\u00a0collaboration.\nMore than half of respondents said coming into 2024 that they would consider tapping new financing. Among those considering new financing, more than 26% would consider using an online lender and about a third would use a large national bank.\nSee also:\u00a0Embedded Lending Puts SMBs at\u00a0Center\u00a0of Financial Services Landscape\nAccording to the SBA, the agency\u2019s own evaluation of the working capital program\u2019s success will include, but will not necessarily be limited to, the number of WCP loans approved, the adoption rate (number of lenders making WCP loans), a comparison of number of loans approved and adoption rate versus the same in 7(a) CAPLine and EWCP programs and among the top SBA Lenders, whether the costs (including losses) of the pilot are within an acceptable range, and portfolio performance as it relates to other 7(a) programs.\n\u201cSmall business owners are using a variety of solutions. They may have seven-plus business apps in their back office, and they\u2019re looking for a simpler and more efficient solution,\u201d\u00a0American Express\u00a0Vice President of Marketing, Business Blueprint and Small Business Banking\u00a0Brett Sussman\u00a0told PYMNTS in an interview posted Thursday (Aug. 15).\nAnd as covered here, the SMB lending market is heating up \u2014 with the most recent earnings season revealing that companies are increasingly focused on the segment.\nThe demand comes as the PYMNTS Intelligence report \u201cMain Street Small Business Growth Exceeds GDP for First Time in Two Years\u201d found Main Street small and medium-sized business (SMB) growth has exceeded gross domestic product (GDP) growth for the first time in two years. That expansion would feed into plans to tap working capital to keep expanding.\nThe post White House Working Capital Program Targets Small Business Stability Through 2027 appeared first on PYMNTS.com.", "date_published": "2024-08-15T15:08:36-04:00", "date_modified": "2024-08-18T21:37:59-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/02/bank-credit-working-capital.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "Government", "Lending", "loans", "national federation of independent business", "News", "PYMNTS News", "SBA", "Small Business Administration", "small business finance", "small businesses", "SMBs", "working capital", "Working Capital Pilot" ] }, { "id": "https://www.pymnts.com/?p=2052474", "url": "https://www.pymnts.com/smbs/2024/invoiv-com-launches-cash-management-platform-for-small-businesses/", "title": "Invoiv.com\u00a0Launches Cash Management Platform for Small Businesses", "content_html": "Invoiv.com has launched a cash management platform designed for small- to medium-sized businesses (SMBs) in the United States and Canada.
\nThis software-as-a-service (SaaS) platform includes accounts payable (AP) and accounts receivable (AR) solutions together with online invoice generation tools with embedded payment links, the company said in a Tuesday\u00a0(Aug. 13)\u00a0press release.
\n\u201cOur platform not only simplifies invoicing but also accelerates the payment process, ensuring that SMBs have the cash flow they need to grow and succeed,\u201d\u00a0Bill Cooper, founder of\u00a0Invoiv.com, said in the release.
\nThe platform is designed to integrate seamlessly with the user\u2019s existing business workflows, to be easy to use and to provide the user with full visibility into cash flow via a dashboard, according to the release.
\nIts online invoice generation tools help businesses create and send professional invoices in minutes, and the embedded payment links in those invoices make it easy for customers to pay quickly and securely, the release said.
\nBy leveraging these solutions, businesses can get paid up to five times faster, per the release.
\n\u201cAt\u00a0Invoiv.com, we understand the challenges that SMBs face, especially when it comes to getting paid on time,\u201d Cooper said in the release. \u201cOur goal is to eliminate those pain points and provide a solution that\u2019s both effective and affordable.\u201d
\nSMBs are under pressure to modernize their financial operations at a time when inflation is pressuring margins and payment delays are becoming more common, according to the PYMNTS Intelligence and\u00a0NCR Voyix collaboration, \u201cThe $150B Question: Can Community FIs\u00a0Capture the SMB\u00a0Digital Banking Opportunity?\u201d
\nSeeking remedies for their cash flow pain, over 70% of SMBs are interested in comprehensive\u00a0cash management services, and 90% demand seamless payment options, the report found.
\nIn May, embedded payments technology company\u00a0VoPay\u00a0debuted a platform designed to help banks and credit unions launch \u201cAPI-first transaction banking and\u00a0cash management services.\u201d
\nIn April, French FinTech\u00a0Payflows emerged from stealth and said it raised $26 million for its all-in-one platform for finance teams. The company said it \u201cbuilt a suite of procurement, payments,\u00a0cash management and cash collection modules which are best-of-breed in their category and combined into an all-in-one platform.\u201d
\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
\nThe post Invoiv.com\u00a0Launches Cash Management Platform for Small Businesses appeared first on PYMNTS.com.
\n", "content_text": "Invoiv.com has launched a cash management platform designed for small- to medium-sized businesses (SMBs) in the United States and Canada.\nThis software-as-a-service (SaaS) platform includes accounts payable (AP) and accounts receivable (AR) solutions together with online invoice generation tools with embedded payment links, the company said in a Tuesday\u00a0(Aug. 13)\u00a0press release.\n\u201cOur platform not only simplifies invoicing but also accelerates the payment process, ensuring that SMBs have the cash flow they need to grow and succeed,\u201d\u00a0Bill Cooper, founder of\u00a0Invoiv.com, said in the release.\nThe platform is designed to integrate seamlessly with the user\u2019s existing business workflows, to be easy to use and to provide the user with full visibility into cash flow via a dashboard, according to the release.\nIts online invoice generation tools help businesses create and send professional invoices in minutes, and the embedded payment links in those invoices make it easy for customers to pay quickly and securely, the release said.\nBy leveraging these solutions, businesses can get paid up to five times faster, per the release.\n\u201cAt\u00a0Invoiv.com, we understand the challenges that SMBs face, especially when it comes to getting paid on time,\u201d Cooper said in the release. \u201cOur goal is to eliminate those pain points and provide a solution that\u2019s both effective and affordable.\u201d\nSMBs are under pressure to modernize their financial operations at a time when inflation is pressuring margins and payment delays are becoming more common, according to the PYMNTS Intelligence and\u00a0NCR Voyix collaboration, \u201cThe $150B Question: Can Community FIs\u00a0Capture the SMB\u00a0Digital Banking Opportunity?\u201d\nSeeking remedies for their cash flow pain, over 70% of SMBs are interested in comprehensive\u00a0cash management services, and 90% demand seamless payment options, the report found.\nIn May, embedded payments technology company\u00a0VoPay\u00a0debuted a platform designed to help banks and credit unions launch \u201cAPI-first transaction banking and\u00a0cash management services.\u201d\nIn April, French FinTech\u00a0Payflows emerged from stealth and said it raised $26 million for its all-in-one platform for finance teams. The company said it \u201cbuilt a suite of procurement, payments,\u00a0cash management and cash collection modules which are best-of-breed in their category and combined into an all-in-one platform.\u201d\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.\nThe post Invoiv.com\u00a0Launches Cash Management Platform for Small Businesses appeared first on PYMNTS.com.", "date_published": "2024-08-14T12:17:30-04:00", "date_modified": "2024-08-14T22:08:03-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Invoiv.com-SMBs-cash-management.png", "tags": [ "B2B", "B2B News", "B2B Payments", "Cash", "cash flow", "commercial payments", "financial management", "News", "PYMNTS News", "small businesses", "SMBs", "treasury management", "What's Hot", "What's Hot In B2B" ] } ] }