• 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