Nexus and JP Morgan team up for small and medium business payments
Digital-savvy small businesses have become increasingly important to the commercial payments sector. Payment companies are rushing to launch price-sensitive products to capture the market and offer their product and services.
US-based AP payments company,Nexus has teamed up with WePay which is an integrated payments solution provider owned by banking giant JPMorgan Chase & Co. Together they have a new payment solution that aims to help small and medium-sized businesses to accept payment through a virtual card to simplify their payment process and improve working capital, the press note stated.
The newly developed payment solution would be called Nexus Direct powered by Chase, and aims to help ‘sole proprietors and small business suppliers to get payments directly into their bank accounts using a single-use virtual card. The suppliers won’t have to provide banking details to each customer – as they do with ACH – or acquire a point-of-sale (POS) system that is currently needed to process virtual cards’.
“NexusDirect is a quick and secure way for small suppliers to receive all the benefits of electronic payments that have been so critical during the COVID-19 pandemic – security, visibility, easy reconciliation, and fast payments – without any hassle or equipment to rent. They can even get paid as soon as the same day, for no additional cost, if they have a Chase account,” said Jennifer Coolidge, president of Nexus.
According to the press release, with NexusDirect solution, the clients would receive a secure virtual card which is sent digitally to fund a single transaction. ‘All the manual work to process the card is done by Nexus and WePay for the supplier. Once the buyer pays for the purchase and authorizes the card, the supplier sees the money in their bank account, minus the predictable card transaction fees’.
The company also states that the volume of suppliers accepting virtual cards increases as much as 42% per month in 2020, compared to the same months in 2019. The payment made through this solution can be tracked within the Nexus platform.