• Codat launched a Supplier Enablement data product with an aim to help businesses replace paper checks.
• The Supplier Enablement tool recruits suppliers to accept virtual card payments instead of checks by allowing card issuers to access the right ERP data.
• The Supplier Enablement tool is currently in production with select J.P. Morgan commercial clients.

Paper checks were invented in 1762, and yet we can’t seem to completely eradicate the antiquated payment technology. Business data API startup Codat is seeking to change that, however. Today, the U.K.-based company announced the launch of its new Supplier Enablement data product.

The new product allows businesses to share their spend and supplier data from ERP systems and accounting software. To reduce the need for checks, the Supplier Enablement tool recruits suppliers to accept virtual card payments instead of checks by allowing card issuers to access the right ERP data.

Piloting the launch is J.P. Morgan, which is using the new offering to allow its commercial clients to efficiently manage supplier payments using virtual cards. By connecting to the current supplier and spending data, clients can easily set up and expand their payment programs. The new Supplier Enablement tool replaces outdated payment files with secure API connections, which facilitates better data analysis and drives higher spending per client.

“With the rapidly-growing adoption of virtual cards for B2B payments, we felt the time was right to release a new data product specifically designed to transform supplier enablement and accelerate how the value of payments innovation is realized in the market,” said Codat CEO Peter Lord. “Codat’s ongoing collaboration with J.P. Morgan has been hugely valuable in helping us develop products that maximize the value of data sharing for financial institutions and their business clients.”

Codat was founded in 2017. In addition to Supplier Enablement, the company offers a Bank Feeds API that allows clients to push transaction data straight to their accounting software; Sync for Commerce, which provides merchant accounting integrations for POS and eCommerce platforms; Sync for Payables, a tool that allows customers to build accounting integrations for AP automation; Sync for Expenses, which allows clients to build accounting integrations for corporate card providers; and a Lending API.

Photo by cottonbro studio

• HighRadius is launching a B2B payments platform.
• The new platform will have three main components to help businesses lower costs: Payment Gateway, Surcharge Management, and Interchange Fee Optimizer.
• HighRadius has more than 800 clients, including 3M, Unilever, Anheuser-Busch InBev, and others.

Treasury Management software company HighRadius announced plans late last week to launch a B2B payments platform. The new tool will help HighRadius clients facilitate global payments for their end users.

HighRadius’ B2B payments platform, which aims to improve payment processes across 100+ global payment methods, is comprised of three main products. Each product is available in HighRadius’ single, standalone platform that will help companies make it easier for their customers to disburse payments globally.

The first product, Payment Gateway, supports more than 150 currencies from eCommerce, order management, and other digital commerce channels, creating a more cost-effective B2B payment solution. Surcharge Management helps companies validate surcharge applicability and pass on interchange fees to their buyers. The solution simplifies things for clients by automatically abiding by regional regulations, which vary by state and card brand. Finally, Interchange Fee Optimizer will automatically populate any missing data and will ensure the payment adheres to pre-configured rules in order to verify that the customer receives the lowest possible interchange fees.

“Payments are a critical part of a customer’s digital experience, and 70% of organizations are not satisfied with the customer experience they offer,” said HighRadius Chief Product Officer Sayid Shabeer. “Our goal is to reduce credit card processing costs through PCI-compliant payment solutions across all digital channels. The Interchange Fee Optimizer will ensure customers offer this at the lowest possible cost.”

Texas-based HighRadius was founded in 2006 and counts 800+ clients, including 3M, Unilever, Anheuser-Busch InBev, Sanofi, Engie GBS Solutions, Kellogg Company, Danone, and Hershey’s. The company earned unicorn status in 2020 when it raised $125 million in Series B funding. Sashi Narahari is CEO.

Photo by Frans van Heerden

• Santander is launching its Openbank digital banking brand in the U.S. and Mexico.
• Openbank currently serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.
• Santander aims to launch in the new regions in the second half of this year.

Spain-based mega bank Santander announced plans to launch a new digital offering in the United States under the Openbank brand in the second half of this year. 

Santander launched Openbank in 1995 as a telephone bank. The bank moved online in 1999, becoming an online broker for real-time trading in domestic and international markets. Openbank currently offers payment cards, including debit and credit cards, prepaid cards, and travel cards; personal loans and mortgages; bank deposit tools; home, life, car, and digital insurance; as well as mobile banking capabilities and PFM tools. Openbank serves two million customers across Spain, Germany, the Netherlands, Portugal, and Argentina, and counts $19.3 billion (€18 billion) in deposits.

“Openbank is the largest digital bank in Europe by deposits with among the highest customer loyalty and satisfaction,” said Openbank Executive Chair Ana Botín. “We remain committed to growing our business in the United States, the largest financial services market in the world, leveraging our proprietary technology and global expertise to deliver a winning customer experience.”

In addition to launching Openbank in the U.S., Santander also announced it will be rolling out the digital bank to users in Mexico around the same time.

To promote the U.S. launch, Santander global ambassador and golfer Jon Rahm and his team will wear an Openbank logo on their shirts during all golf competitions, starting at the Masters in Geogria this weekend. “The golfer will help Santander and Openbank increase their visibility in North America, where Santander has a significant presence,” the bank explained.

Many non-U.S.-based digital banks have experienced difficulty launching in the U.S., citing the difficulty to obtain a banking license from the U.S. OCC. As Finovate Analyst David Penn wrote in a blog post yesterday, “…it has not been easy for financial institutions outside the U.S. to secure approval to operate within the U.S. For example, Monzo, a U.K.-based challenger bank, tried and walked away from the process in 2021 when approval seemed unlikely. Unfortunately, new U.S.-based firms looking for bank charters have only fared a little better. For every Savi Financial, there is a New Canaan Bank.” Openbank should not have the same issue, however, as the bank will likely rely on Santander’s banking license it received after buying out Sovereign Bank in 2008.

Photo courtesy Santander

• Quavo Fraud & Disputes has teamed up with Snowflake.
• The partnership between Quavo and Snowflake will allow Quavo to offer its clients access to more extensive datasets, helping them manage their fraud and disputes processes.
• Since it was founded in 2015, Quavo has helped recover nearly $660 million for 6+ million users

Disputes-as-a-Service company Quavo Fraud & Disputes announced that it has teamed up with data warehouse-as-a-service provider Snowflake this week.

“As Quavo has continued to push the limit of automation in the payment dispute management space, data security and flexibility have become increasingly important,” said Quavo Director of Strategic Partnerships Dana Reiner. “I am excited we have formalized our relationship with Snowflake, as they have proven to be a vital part of our analytics and innovation.”

Quavo will integrate Quavo Fraud & Disputes (QFD) with Snowflake’s platform. QFD is Quavo’s SaaS platform that helps issuing financial institutions resolve fraudulent and disputed transactions. Using the tool, banks can manage the entire flow of the disputes process. By partnering with Snowflake, Quavo will be able to offer its clients access to more extensive datasets, which will help them manage their fraud and disputes processes.

Quavo was founded in 2015 to help financial institutions deal with the rising cost of fraud and payment disputes. Since then, the company has helped recover nearly $660 million for 6+ million users who have suffered financial fraud, merchant issues, and identity theft. Quavo counts KeyBank, Galileo, Green Dot, and others among its clients.

Snowflake launched its data platform in 2012 to help businesses load, integrate, analyze, and share their data, securely and at scale. While the California-based company’s solutions span many different verticals, Snowflake’s financial services use cases include quantitative research and trading, personalized investment planning, financial crime prevention, insurance underwriting tools, and more.

Snowflake’s Head of Banking & Capital Markets James McGeehan made it clear that today’s partnership is just the start of the alliance between the two companies. “We look forward to further collaboration with Quavo in an effort to advance fraud resolution capabilities for financial institutions,” McGeehan said. “Our scalable cloud data platform combined with QFD will help to arm issuers with a robust data solution for the fight against fraud, and help customers to safeguard consumers’ financial well-being.”

Photo by Dominika Gregušová