Banking group TSB has launched a payments app, Revenu for small business customers in partnership with Bankifi.
UK’s TSB Bank has partnered with Manchester-based fintech company BankiFi to provide a new platform for small and medium enterprises (SMEs) to receive payments faster and better manage their business finances.
BankiFi’s partnership with TSB follows a recent funding round of EUR2.2 million ($2.33 million), which was led by Manchester-based firm- Praetura Ventures. It also received participation from Greater Manchester Combined Authority (GMCA).
Revenu enables SMEs to receive fast payments
The new platform known as Revenu will help small businesses chase overdue invoices. The app uses an open banking infrastructure that allows the invoices to be settled quickly and securely.
The Revenu app allows SMEs to collect consumer payments from requests sent via SMS, WhatsApp, email and QR code. The app connects to existing software that streamlines invoice management and liberates business owners from time-consuming financial processes. It provides SMEs with the ability to create, manage and see all the invoices in a single place.
“It significantly simplifies the invoice process by providing several flexible, accessible ways of receiving payment and accelerating access to working capital,” TSB said.
SMEs chase late payments with an average amount of $6,000
Government statistics show that there are over 5.5 million small businesses in the UK and over 400,000 businesses shut down during the pandemic. According to Businesscloud, 50,000 SMEs closed down every year and the average size of late payments owed to SMEs in the UK is EUR 6,000 ($6,522 approx.)
The new FSB study further suggests that a similar number of firms could be forced to close again this year due to late payments. Initiatives like Revenu are important and become necessary for SMEs to implement new payment methods to stay in the race.
TSB is committed to supporting UK’s SMEs, whether they face customer or supplier issues. As part of its ‘Do What Matters Plan’, the bank is currently going beyond the government’s voluntary prompt payment code by paying 97% of its SME suppliers on an average of seven days, and 97% of all suppliers on an average of nine days.
Liz Barclay, commissioner of small business said, “Given that small businesses tell us that they spend as much as one day a week chasing overdue invoices and delayed payments, technology and apps that help them get their invoices out and payments in quickly is very welcome. I hope this will be another step towards getting rid of the late payment culture that’s dogged the UK for decades".