If You Think SMBs Can't Accept Virtual Card Payments, Think Again
Every 15th of the month, you go online to pay your bills. It takes a few clicks and, within a few minutes, you’re done. Afterwards, there's one less task on your plate.
But then, you decide to add a sunroom onto your house. Disappointingly, you discover that none of the small contractors and sole proprietors (like the flooring guy) offer an online payment option.
Consequently, you have to dig around for the check book, write multiple checks, and mail them. Then, you hope the US postal service delivers the checks on time.
The same thing happens with companies who pay hundreds – or thousands - of vendors with an AP payments solution. They automate their payments because they want the efficiencies of online payments. And yet they still have to write checks for those SMBs or small proprietors who can’t accept card payments.
For that reason, Nexus has added a new SMB virtual card payments service to its AP payments solution.
NexusDirect, powered by Chase, is a new virtual card payment option perfect for SMBs
NexusDirect is a collaboration between Nexus and WePay, the integrated payments business of JPMorgan Chase & Co. And it’s designed to help Real Estate companies – who use NexusPayments - pay smaller companies with secure virtual cards (instead of paper checks).
Suppliers don’t need Point of Sale systems to run the virtual cards through. They also don't have to surrender their banking details to every customer, as they do with ACH.
They can just sign up for the NexusDirect SMB virtual card payments program. Then, they simply enter their bank account details just once in a secure online portal. They quickly start receiving all their payments via virtual card. Nexus, along with WePay, processes the card on their behalf.
Suppliers can then view all their transactions online.
Suppliers pay a low, fixed fee for each transaction made via NexusDirect– and receive payment in days. They can even receive funds the same day, for no additional cost, if they have a Chase bank account.
All of this a far cry from anxiously waiting by the mailbox for their checks to arrive.
Virtual card acceptance is already on the rise - NexusDirect only adds to the momentum
“NexusDirect is an ideal solution for small suppliers who don’t want to invest in Point of Sale equipment to process cards, and still gain the benefits of faster payment and security,” said Jennifer Coolidge, president of Nexus, who pioneered the solution.
Coolidge noted that the demand for virtual cards has skyrocketed since March of 2020 (when the pandemic started). At that point, both buyers and suppliers started seeking out an alternative to handling paper checks.
In fact, Nexus saw the volume of suppliers accepting virtual cards increase as much as 42% per month in 2020, compared to the same months in 2019. However, many small suppliers couldn’t take advantage of virtual cards because they didn’t have a POS.
The new NexusDirect SMB virtual card payments solution addresses this market. And it aims to serve 20,000 suppliers and more than $2 billion in spend (just for Real Estate alone).
Benefits of NexusDirect SMB virtual card payments solution for buyers
Buyers who use NexusPayments will see no changes in how they use and manage NexusPayments today. They are simply able to pay more of their suppliers with virtual card. Furthermore, they can even earn additional rebates from the spend – all at no cost to them.
It's easy to get started with virtual card payments through NexusDirect
Just reach out to Nexus: