Visa and Taulia teams take charge of embedded finance as credit shortage grows

visa We have started a collaboration with SAPOwned working capital management solutions provider Taulia.

of partnershipwas announced on Tuesday (March 12) and integrates Visa’s digital payments technology with Taulia Virtual Cards, a solution that integrates SAP’s enterprise resource planning (ERP) products and business applications.

“The partnership between Visa and Taulia enables virtual payment credentials to function natively across SAP business applications, simplifying payments across the business ecosystem,” the companies said in a news release. “With the planned integration, Visa’s API will embed a virtual payment credential, authorization and activation solution directly into SAP business applications.”

The release states that enterprise buyers can use embedded virtual cards to streamline the payment experience and allow users to stay in their ERP or business applications. The companies said their solutions help finance executives, procurement departments and accounts payable teams automate supplier payments.

This is “particularly useful for suppliers making one-off payments, as it eliminates the need to create complete master data in the system, a process that can take weeks or even months,” the release said. It is stated in.

Here’s the Visa and Taulia team-up: similar partnership Since last November, I have been with Taulia. master Card. This is also happening as companies adopt working capital management strategies that leverage commercial and virtual cards to manage B2B spending and preserve cash to cover unexpected expenses. .

“Even companies in traditional industries like transportation and logistics, where lock boxes and paper checks abound. Rethinking commercial cards as a versatile tool for managing various aspects of operations and employee spending,” PYMNTS wrote earlier this week.

This transition is being accelerated by the commercial environment moving towards a more equitable sharing of credit card transaction costs. While merchants have traditionally borne the brunt of these costs, the value proposition for each party involved in B2B card transactions is continually being reevaluated, according to the report.

Meanwhile, according to the latest version, working capital continues to become increasingly scarce for companies. federal reserve beige book investigation.

“The bank contact also said: Credit standards have become stricterparticularly for business loans and commercial mortgages,” the study said. “Deposit rates remained flat, but loan spreads narrowed and delinquencies continued to rise. Banks and corporate customers saw lower demand for loans due to rising interest rates and reduced potential supply due to tighter access to credit. Agreed.”

Meanwhile, less than half of companies with annual revenue of $10 million or less, according to research from PYMNTS Intelligence, Business or personal financing.

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