UOB launches SE Asia’s first virtual accounts payable platform
(2 March 2017 – Asia) According to United Overseas Bank (UOB), it has launched Southeast Asia’s first virtual accounts payable solution, the UOB Virtual Payment Solutions suite.
The bank says the new platform will assist “companies in raising their productivity and manage costs efficiently.”
In a media release, UOB added that the suite “enables businesses to pay their vendors and suppliers through a virtual corporate credit card account even if these parties do not accept card payments.”
As such, the supplier receives immediate payment, while the company making the purchase enjoys interest-free credit to help extend their cash flow for up to 90 days.
UOB’s Managing Director and Head of Group Commercial Banking, Eric Tham said that businesses are looking for ways to use technology to increase their profits particularly as they grapple with rising business costs and a tight labour market.
“In the current economic climate, it is important for companies to be even more proactive in managing their cash flow and increasing productivity to ensure their continued growth. That is why we continue to introduce financial technology solutions such as the UOB Virtual Payment Solutions suite to make managing the financial side of their business easier,” he said.
UOB Managing Director and Head of Personal Financial Services Singapore, Jacquelyn Tan, added: “Over the last five years, we have seen close to a 20 percent increase in the use of payment cards by companies. This is mainly because the companies appreciate the ease of account reconciliation that credit cards bring. However, as their SME suppliers generally do not accept credit cards, the companies have had to rely on time-consuming cash and cheques to pay them. Through the UOB Virtual Payment Solutions suite, our corporate customers can pay their SME suppliers as well as reap the benefits of using credit cards.”
UOB has partnered with Visa Business Solutions and Invapay, a UK-based fintech company on the accounts payable component of the Virtural Payment Solution suite.
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