UPS Capital, Payoneer debut B-to-B payment platform
UPS Capital has launched an online business-to-business payments service that will allow transactions licensed by escrow in a matter of minutes, rather than using a letter of credit or other options that can take up to two weeks to complete.
Cross-border payments provider Payoneer will power the digital B-to-B platform service for UPS Capital, which is a unit of United Parcel Service. The payments service supports customers and companies in more than 200 markets and in 150 currencies.
“The risk of nonpayment is a major challenge for small and mid-sized businesses trading across borders,” Ron Chang, president of UPS Capital, said in an Aug. 8 press release. “The loss of revenue or receiving a defective product can cripple cash flow leading to devastating business impacts."
The new B-to-B payment service helps "mitigate the risk for our customers — either buyer or seller — and gives them peace of mind that the funds will be available and the goods delivered as described,” Chang added.
The companies say they are addressing a problem that has historically limited international expansion for businesses.
UPS Capital cited a Payoneer study in which 75% of respondents declined cross-border business because of the risk of non-payment and 57% of sellers said their current approach to ensuring payments limits their growth.
"We're thrilled to help UPS Capital offer the security of online escrow to their small and mid-size business customers, which will allow them to reach new markets," Payoneer CEO Scott Galit said in the release.
UPS Capital says the service can function as an alternative to letters-of-credit, COD, credit card, payment-in-advance or documentary-collection services.
Nearly a year ago, Payoneer received a funding round of $180 million earmarked for its cross-border technology.