American Express has launched a new digital payment service that provides corporations with something that banks to date have not been able to offer—a consolidated offering that supports check, ACH, wire and credit card payments.
Companies using the new service, Payve, send a file to American Express that can include instructions for multiple vendors and various payment methods. American Express directs the payments to each supplier using the designated method, and Payve processes the payments to clients’ banks, allowing companies to maintain their existing banking relationships and corporate processes.
Payve makes it easier for American Express to sell to corporations because it can offer all the payment methods that corporates want to use, McPherson says. “On the other hand, it helps grow the card business because once they’re in, they can offer the company greater rebates for more card business.”
McPherson says it’s likely that corporations will use EDI for payments to their biggest, tier one suppliers. They typically use checks for their smallest, tier three suppliers.