April 15, 2014 9:20
B2B dedicated payment system “Visa Business Pay” service launched
All billing and payment operations can be completed online
On April 14, 2014, Visa Worldwide (Visa) launched the service of “Visa Business Pay”, a dedicated B2B (business-to-business transaction) payment system. This service is a B2B dedicated payment system that uses the payment function of a Visa card, enabling all billing and payment operations to be completed online.
Easy to use without manual
Building an unprecedented system including other brands
“Visa Business Pay” is a mechanism in which the supplier company becomes a Visa affiliated store and the buyer company uses a Visa card to electronically bill and settle payments through the system. Mr. Tomohiko Morita, Director of Commercial Solutions at Visa Worldwide Japan, explains, “I made it with the intention of creating something that can be used without the need for an instruction manual.” According to the company, a B2B dedicated payment system that can be completed entirely online will be an unprecedented system, including for other brands.
The B2B payment market in Japan is about 700-950 trillion yen. It boasts a scale of more than three times that of BtoC. Visa aims to introduce card payments for companies that conduct B2B transactions, such as raw materials, purchasing, shipping, and shipping costs. Currently, card payments account for 14-15% of the 300 trillion yen domestic B2C market.
In the B2B market, there is a direct cost for large corporate buyers to pay large corporate suppliers, but it is difficult for the introduction of card payments to penetrate due to bilateral transactions in which lots are huge. In addition, when large corporate buyers do business with SME (small and medium-sized enterprises/sole proprietors) suppliers, we also provide services with issuing (issuing companies) such as cooperation with purchasing cards (procurement cards) and corporate cards (corporation cards). We need to fight together. For Visa, we focused on business use by SMEs who have many business cards and personal cards.
It is said that there are about 3.65 million SMEs and sole proprietors in Japan. According to a Visa survey, the current SME credit card payment ratio is around 3%. Visa wants to shift from cash to cards. For example, restaurants, owners, construction companies, etc. make payments very frequently, but there are few cases where you can pay with a card. Also, because the infrastructure is not in place, the acquirer was unable to sell to member stores. Therefore, by offering “Visa Business Pay”, we would like buyers and suppliers to use it conveniently.
Suppliers can trade with individual IDs
Also provides communication tools for buyers and suppliers
Currently, buyers’ requests for card payments in the B2B market are: “There are no places where cards can be used”, “I need a receipt”, “I want a statement”, “The limit is not enough”, “Details for each payment amount” There are voices such as “I want this” and “I don’t go to the store”. From the suppliers, “It’s not a fixed price sale”, “I don’t want to change the billing procedure”, “I’m worried about the handling of card information”, “I don’t want to pay merchant fees”, “Increase in payment confirmation work”, “Customers There is a request such as “Do not come to the store.”
“Visa Business Pay” is a payment system created based on such voices. Buyers can make payments 24 hours a day, 365 days a year using a PC or smartphone. Any Visa card can be used regardless of the issuer, including personal and business cards. In addition, you can use your PC or smartphone to check work even when you are away from home. It is also possible to scan the QR code on the invoice and complete the payment procedure. In addition, since it is a system that uses a web browser, anyone can easily install it.
As an advantage for suppliers, simply create an invoice on the Visa Business Pay screen and click the issue invoice button to automatically send an invoice email to the buyer. This eliminates the time-consuming task of sending invoices and reduces costs by streamlining operations. In addition, since a payment confirmation email is automatically sent after payment, the payment status can be quickly grasped by email or online. In addition, there is no need to manage card numbers, etc., and it is possible to proceed with transactions with buyers using individual ID information.
Visa also offers communication tools, allowing buyers and suppliers to interact over the web.
When applying for the use of “Visa Business Pay,” suppliers are required to enter into a merchant contract with a credit card company. In that case, Visa will not charge the merchant. It seems that there is already a response from multiple acquirers.
Interlocking accounting systems is also being considered
GMO-PG spent seven months building the service
In the future, they are considering linking with an accounting system. In addition, although it is currently available only for Visa brands, “As the person in charge, I would like other brands to use the same system.” By providing this system, Visa hopes to revitalize the B2B payment market.
The system was built over seven months by GMO Payment Gateway (GMO-PG), a payment processor. When selecting a company to build the system, they considered other payment processors as well. It is said that Visa evaluated the achievements and other factors. GMO-PG also operates operations, maintenance, and call centers. The company’s system is also PCI DSS compliant, ensuring security.