Emerchants Limited (ASX: EML) (EML) is pleased to announce that it has entered into several multi-year B2B Virtual Card Agreements with companies in the U.S. market.
Under the terms of the agreements, EML will improve the companies’ accounts payable processes by optimizing payment methods, payment terms and data management for suppliers.
EML will enroll suppliers, pay them via a virtual prepaid debit card, and earn a share of the interchange generated on each dollar of spend.
Eric Mettemeyer, CEO of EML North America, said:
“EML is focused on helping each of our customers’ achieve their accounts payable optimization goals.
“Although all supplier optimization goals are unique, they generally include the elimination of paper checks through the utilization of virtual prepaid debit cards and other electronic forms of payment, optimization of working capital, and improvement of processes related to supplier data management and invoice inquiries.”
Tom Cregan, Managing Director and Group CEO of EML, said:
“These agreements are an important development for the strategic growth of EML in the U.S. market.
“The North American team identified B2B virtual payments as a future growth driver prior to the acquisition by EML and have continued to develop the solution over the last six months.
“The team is actively enrolling suppliers now for these programs, which are scheduled to go live in or before January 2017 and we expect these initial programs, once they reach maturity later in the 2017 calendar year, will encompass over $100 million per annum in transaction volume.
“The business development team continues to focus on other B2B opportunities and as we’ve seen from other parts of our business, the right technology and successful execution leads to more agreements, so we are very focused on these four programs and generating the results that our customers are expecting.”
Recent B2B Virtual Card agreements signed include:
- BHA Altair – A division of CLARCOR Industrial Air that supplies industrial air filtration solutions. BHA Altair is a privately held company and is part of CLARCOR Industrial Air, which employs 1,639 people globally.
- Midwest Scrap Management – Midwest Scrap provides metal recycling services for industrial, commercial, construction, farm and household accounts. Operating four plants in the U.S., Midwest Scrap is one of the largest metal recycling companies in the central region of the USA.
- WideOpenWest – Based in Denver, CO, WideOpenWest is the ninth largest cable television provider in the U.S. WideOpenWest is privately held and offers broadband telecommunication services including high-speed Internet, data, voice, cloud and cable TV services.
- Sprint – Headquartered in the Kansas City area, Sprint is one of the largest telecommunication companies in the USA, employing approximately 31,000 people worldwide. Sprint serves 56 million subscribers and generates more than 30 billion U.S. dollars in annual revenue.