American Express Canada is launching a digital payment solution that replaces plastic cards with virtual account numbers.
American Express vPayment assigns a specific-use account number to each transaction, and users are able to set a payment amount, date range and other transaction details. During expense reconciliation, a transaction is matched to its associated virtual account number.
American Express claims that vPayment is ideally suited for procurement and accounts payable departments within organizations looking to streamline payment processes while reducing errors and the risk of fraud by giving organizations the ability to set the exact value a supplier is able to charge, as well as a specific date or date range within which they want the transaction to occur. Because virtual account numbers can be accepted using the same point-of-sale equipment as traditional credit cards, there is no additional technology required for suppliers already accepting American Express.
"The benefits of adopting digital payments go way beyond improvements to invoicing and reconciliation," said Paul Roman, vice president and general manager of commercial payments at American Express Canada, in a press release. "American Express vPayment can help businesses cut costs by saving time associated with manual payments, and improve cash flow management by maximizing payment arrangements."