Banking group TSB has launched a payments app for its small business customers in partnership with banking technology platform provider Bankifi.
The new Revenu app uses Open Banking infrastructure to allow TSB’s SME customers to collect payments from requests sent by SMS, WhatsApp, via email and using a QR code.
TSB said that the app also simplifies the invoicing process, by connecting to existing accounting software to streamline invoice management and making sure that invoices are settled more quickly.
According to the bank, SMEs in the UK are owed , on average, more than £6,000 in late payments.
Small Business Commissioner, Liz Barclay, said that small businesses spend as much as one day a week chasing overdue invoices and delayed payments.
“Small businesses need to be sure about when they will get paid. Without that certainty they can’t plan, invest and grow. I hope this will be another step along the way to getting rid of the late payment culture that’s dogged the UK for decades”.
Nick Reid, head of sales, Europe and North America at BankiFi, warned that the impact of the pandemic on small businesses “is by no means over”.
“That’s why we’re delighted to partner with TSB and put technology in the hands of businesses that directly addresses key challenges, such as late payments, facing the 5.5 million SMEs in the UK,” Reid added.
According to TSB, it pays 97% of its SME suppliers on an average of seven days, and 97% of all suppliers on an average of nine days, exceeding the requirements set out in the UK Government’s voluntary Prompt Payment Code.
TSB business banking director Adeel Hyder said: “Our latest digital solution will provide a vital boost to cashflow, while equipping customers with essential business management tools – at a time when these hard-working businesses need support the most.”