Category: Company News

Increased demand by consumers for faster payments makes prepaid cards a strategic choice for insurers looking to gain an edge

The competitive landscape between insurance companies continues to be fierce as new technologies and digital-first entrants penetrate the marketplace. A significantly growing area of competitive differentiation that has come into focus is the ability of insurers to provide payment options and instant payments.

Digitally connected customers are seeking carriers providing instant and same-day disbursements. The change in consumer behavior and expectations has paved the way for more insurers to leverage instant issue and reloadable prepaid cards as a simple and cost-effective means of growing and retaining their customer base. Additionally, using these products is one key step companies are using to prevent the loss of market share to so-called “digital born” competitors.

The delays between filing a claim and receiving reimbursement can be frustrating for insured individuals. Without the funds to pay for things like repairs or medical bills, policyholders may need to use their savings – or worse yet credit cards – until an insurance payment is made.

However, by using prepaid insurance cards, insurers can immediately provide the necessary financial support, reducing the pressure on both you as the insurer and your customers while significantly simplifying claims processing.

In a recent study by PYMNTs , when given the option, consumers chose instant payouts 23% of the time, followed by its closely related cousin, same-day bank account transfers, at 21%. These choices were far and away favorites compared to checks at 12% and cash at 7%.

Prepaid cards present carriers with the opportunity to eliminate manual processes and greatly reduce the time and cost associated with cutting checks, including printing, postage, and replacement costs. Should a check go missing, issuers may have to take on the cost of stopping payment, and if recurring payments are required, the time and cost associated with doing so add up quickly. Beyond the time it takes to get a check, recipients, who may need funds urgently, must wait to use the funds after making a deposit and for the check to clear.

A digital, prepaid approach to disbursements provides an enhanced customer experience and reduces costs associated with service calls. Customers want to know where their checks are, and in today’s market, they are quick to make their frustrations known on social media.

Additional benefits also include:

· Minimizing fraud issues. If a customer misplaces or loses a card, an insurer can quickly cancel the card and instantly reissue a card.

· Avoiding fees and fines through better compliance with state “prompt pay” requirements.

· Delivering funds domestically and cross-border safely and securely.

· Provide funds to unbanked or low-banked customers.

· Use physical or virtual prepaid cards to make multiple claim disbursements on a reloadable card (e.g., worker’s comp/disability) or make an instant one-off disbursement.

· Create physical and virtual cards with your company’s logo to promote your brand and attract new customers.

services are under pressure to provide card services for versatile use within their consumer communities. 

Using prepaid cards for insurance claims changes how funds get distributed to the insured. Otherwise, the process of completing an insurance claim is like the traditional filing method. Once a claim is approved, an insurer can act as its own card issuer.

· Prepaid cards can be provided to customers with no funds added to the cards until a claim is filed.

· Adjusters can provide insurance carriers with a prepaid card, and the adjuster can load cards instantly based on their assessments. If repairs exceed the initial assessment, the agency or the adjuster can instantly add more funds.

· Insurers can instantly issue a virtual card that recipients can add to a digital wallet and use immediately, especially when needed to support emergencies.

In each approach, a disbursement can be made quickly rather than rattling around internal systems and processes.

Card recipients can use the card at an ATM to withdraw cash, pay bills in person, transfer funds to their bank account, or make purchases from online and brick-and-mortar merchants. This provides customers with total flexibility to address their needs better.

By adding prepaid cards as a payment option, insurers can stand out from competitors and go beyond protecting them financially. B4B Payments has built an end-to-end, embedded payment offering, that offers insurance companies everything needed to develop their own embedded finance offering, from flexible payment accounts to instant payments on easy-to-use prepaid cards and seamless APIs that easily integrate into existing systems.

If your company is looking to streamline its disbursement processes, gain the needed competitive advantage, and deliver immediate payments to your customers, contact us for more information or to request a short demo.

Discover how to take the stress out of payroll, reduce FX fees, and manage corporate expenses with B4B Payments card services and platform solutions

Finding solutions to common business challenges in a digital world is no easy feat. Whether businesses are looking to tackle payroll challenges, take the effort out of corporate expenses, or transform payments and FX, there are solutions out there to cater for every need. 

While countries worldwide are transforming into cashless societies, the power of the card continues to grow. 

Although some might contend that smartphones and electronic payments are the way of the future, the statistics suggest that card payments are stronger than ever. 

In fact, in the UK alone, we saw 2.1 billion transactions with debit cards in August 2022, 8% more than the same month in 2021, representing a 4% higher total spend at £64.1 billion. 

With this in mind, card services are quickly becoming the top way to pay for consumers and businesses alike – but can they be used to solve payroll, expense, and FX challenges too? Read on to find out how the card services from B4B Payments can help businesses achieve just that. 

Tackling payroll challenges

According to global research findings, 16% of companies operate remotely, providing better work/life balance opportunities for those working at a distance from their company headquarters. As a result of the so-called ‘Rise of Remote Working,’ the need for employers to provide flexible payment services has also increased. 

Add to this the widely reported The Great Resignation phenomenon leading to talent shortages across industries. Many in-demand professionals are finding themselves in the advantageous position of being able to opt for new, highly-paid flexible contracts with better employee perks. Subsequently, more companies are being forced to explore outsourcing, turning to temporary contractors overseas to fill their skill gaps or restructuring their benefits packages in a bid to retain their existing employees. 

However, paying contractors or remote workers overseas can be tricky to navigate, often subjecting finance teams to complex FX fees and currency complications. Using card services can reduce foreign transaction fees and offer more currency choices for employees, contractors, or even affiliates based abroad. 

B4B Payments payroll card services are the perfect solution to the challenges of paying remote workforces, offering multi-currency support in up to 25 countries.

With reduced cash and cheque handling fees, companies can reinvest the money saved and put the funds towards providing better benefits packages. Increasing employee incentives does more to attract new talent to organisations. It can also lead to greater employee retention in the long term, so it may be an excellent option for brands that want to increase employment opportunities at their firm.  

Simplifying expenses with card services

Managing corporate expenditure is a monolithic task for finance departments, whether handling employee travel, event costs, food and drink, entertainment, or office supplies and inventory costs. 

To illustrate, in 2020, the global business travel market alone was worth approximately $700 billion and is set to grow by 188% by 2028.

Keeping track of all company expenses can take a lot of work. But, B4B Payments card services make it easy for businesses to control expenditures efficiently. We provide a safe and secure platform to load cards with funds entirely remotely. We can even help businesses set up automatic money top-ups for frequent corporate expense users. 

From a business owner’s perspective, it makes sense to allocate specific departments with carefully budgeted spending limits. B4B Payments categorises all business expenses through an easy-to-use platform that tracks and manages card expenditure on a departmental level. 

In addition, B4B Payments provides a downloadable app for employees to upload receipts. This feature centralises and stores all crucial VAT receipts from anywhere in the world, making it straightforward for accounts teams to process them for their financial statements. 

Transforming corporate payments and FX

Cross-border payments bring numerous challenges in navigating and applying fees for multi-currency transactions. 

According to Mckinsey, the total revenue of cross-border fees, mainly FX and transaction fees, can amount to up to $200 billion per year globally.

Cost-saving on these types of expenses is crucial for large or scaling businesses. In some cases, fluctuating currency rates can make long-term supplier contracts unaffordable overnight, forcing companies to look elsewhere for a better deal. 

At B4B Payments, we offer a solution with our payment and FX services that provide cost-effective solutions for corporate payment needs. 

For example, for large or scaling companies with a high volume of transactions, using B4B’s platforms will execute low-cost transfers, offer competitive FX rates, and facilitate speedy settlement times to ensure that cross-border payments in over 25 currencies remain as cost-effective and efficient as possible. 

Our B4B Payments platform is highly customisable, and delivered through a robust API that integrates into various existing systems such as Xero. Plus, businesses can export data easily in XLSX, CSV, QIF, and OFX to use in other accounting solutions like QuickBooks and Sage. Our user-friendly interface simplifies bulk payment processes and provides a clear transaction audit trail for businesses to use for reporting and analytics activities. 

Furthermore, many companies across the EU are fluent in several banking rails and card formats, including SEPA, Faster Payments, CHAPS, (USD) ACH, DKK intraday, and SWIFT. 

B4B payments instantly recognises all of these payment rails and card formats, providing businesses with a complete solution to cross-border payment needs. 

Finally, transparency is the key to managing overseas payments, and with B4B Payments, businesses are not subject to any hidden costs. We even offer a free FX transaction calculator, letting stakeholders know how much a multi-currency transaction will cost ahead of payment. 

B4B Payments make managing business finances easy

Here at B4B Payments, we have over 15 years of experience in payment innovations. We offer a host of unique card services that make handling expenses, payments, and payroll easy and highly secure. 

Our goal is to keep our clients one step ahead of their competitors and to ensure that they can keep their teams (no matter where they’re working in the world) happy by facilitating fast and transparent global transactions.

So, book a demo with us now if you would like to learn more about our card services, corporate payments, and FX transactions and how they can help stabilise your cash flow. 

Discover how B4B Payments BIN Sponsorship 2.0 can support regulated EMIs in the next stage of their payment journey with settlement solutions.

As of 2021, over 26,000 fintech companies are operating globally, of which 1,600 are based in the UK. With that number set to double by 2030, the race to market is highly-competitive. 

With more fintech services set to hit the market, innovation is key to staying ahead of the competition. For both start-ups and established services, tackling electronic payments (or e-payments) can be daunting. 

For regulated Electronic Money Institutions (EMIs) yet to secure a scheme licence, navigating the strict payment rules while suffering from stretched resources and, sometimes, a gap in expertise can be a huge challenge.  

In this article, we’ll take a look at the advantages of being a regulated EMI, the importance of working towards a scheme licence, and how B4B Payments BIN Sponsorship 2.0 can help companies overcome their e-payment hurdles and get to the next stage of their growth journey. 

What is a regulated Electronic Money Institution

Fintech services are under pressure to provide card services for versatile use within their consumer communities. 

Electronic Money Institutions (EMIs) are businesses that can help fintech thrive in this area. They are licensed to offer financial services to their fintech clients while also keeping their clients’ money in specialised segregated accounts. The EU regulates EMIs, and some examples of well-known EMIs include PayPal, Google Pay, and Apple Pay. 

EMI payment services include:

• Cash withdrawals from an e-payment account 
• Money transfer to third parties
• Money remittance
• Providing payment cards that allow individuals to withdraw money and load funds into their secure account
• Provide account details

What are the advantages of becoming a regulated EMI?

EMIs present an alternative to traditional banking, enabling both small and large companies to send and receive e-payments faster with less red tape than going through a conventional financial institution. 

Additionally, business owners can become a regulated EMI without needing to visit a bank to get set up with an IBAN (International Bank Account Number) to facilitate multi-currency transactions.

Further advantages of becoming a regulated EMI include the following: 

• Security: All EMI transactions are encrypted and secure. 
• Compliance: EMIs deploy modernised compliance procedures offering enhanced fraud protection capabilities with less paperwork. 
• Future-proof services: EMIs provide multiple payment options, giving more choices to their clients. 

To apply for EMI-regulated status, businesses must provide in-depth information about the structure and objectives of their organisation. In addition, they must prove that they hold a significant amount of starting capital. To find out more about submitting an EMI application, visit the UK’s Financial Conduct Authority’s guide here. 

EMI regulation should be a top priority for fintech brands, as it protects both the business and consumers. However, the journey to facilitating e-payment services doesn’t stop at obtaining EMI-regulated status. The second hurdle is to apply for an EMI card scheme licence. 

The EMI card membership or scheme licences allow forward-thinking fintech companies to connect with consumers through card issuers in multiple regions. Providing card services can be a crucial differentiator for businesses, making the need to move on to this next stage of EMI scheme membership vital. 

Securing a scheme licence

To become a card scheme regulated as an EMI, businesses need to work with a card scheme like Mastercard or Visa. A card scheme licence authorises a company to issue unique payment cards by giving them a BIN number. The BIN number is the first six digits on an individual payment card. 

However, it’s important to note that card scheme membership requirements can be just as challenging to secure as meeting the FCA licensing requirements at the EMI application’s initial stage. Furthermore, it can take time for EMI card scheme applications to be approved. 

Fortunately, during the EMI card scheme verification process, payment companies (such as B4B Payments) can extend their own scheme membership to other companies to act as a stop-gap. That means we can support fintech business services during the approval stage by getting them set up with e-payments quickly and securely. 

B4B Payments is an FCA and Bank of Lithuania Authorised E-money Institution. We’re also a Principal Member of Mastercard and Partner in the Mastercard Fintech Express Programme. In addition, we hold Visa Inc Partner status for card issuing in the US states. These credentials make the B4B Payments BIN Sponsorship 2.0 service the ideal programme for regulated EMIs in the application stage of their scheme licence journey. 

For instance, we can provide a range of settlement services for fintech brands that have gained EMI-regulated status or are in the process of obtaining card scheme membership and need some additional e-payment support. 

Lightening your load with BIN Sponsorship 2.0

If your fintech service is at the regulated-EMI stage, our BIN Sponsorship 2.0 service can offer enhanced Settlement-Only support. 

These advanced services are made possible through our card scheme memberships with Mastercard in the UK and Europe and Visa in the USA. 

As a BIN Sponsorship member, as well as alleviating the pressures that go hand-in-hand with facilitating your own scheme memberships with our Settlement-Only services, we can build custom interfaces using APIs or our B4B Payments’ interface. 

We can even help you set up account screens, which include your company name. Plus, you will be able to set up T+Cs, which reflect you as the account issuer.

We also offer Turnkey Settlement-Only services. Here, we leverage our issuing capabilities and build your own custom interface using APIs, or you can use the B4B Payments interface. We can also ensure that client accounts remain in your business name and that your payments T+Cs reflect you as the account issuer.

BIN Sponsorship 2.0 from B4B Payments offer unparalleled EMI support

With 15 years of experience in payments, B4B Payments can support you through and beyond your EMI membership scheme journey. 

From safeguarding funds to managing accounts to even handling e-payments once you have signed your EMI licencing agreement, our BIN Sponsorship 2.0 programme is tailored to suit your unique business needs. 

So, if you’re interested in learning more about how BIN Sponsorship 2.0 might benefit your financial start-up and help you stay competitive, contact us now.  

Jenny highlights her incredible experience as an intern at B4B Payments

About Jenny Sherpa

Jenny is an ambitious and engaging entrepreneur who is currently studying International Business at University of West London in her final year. She has experience working in the Financial Services, IT Services and Insurance industries, giving her a well-rounded background to innovate in the Entrepreneurial world. In 2018 she launched her own Textile start-up on top of that. But Jenny does not limit herself; she also indulges her passion for fashion, as well as taking a keen interest in Real Estate and the Fintech markets. With such an ambition and engaging spirit, there’s no telling what innovative ideas she will come up with next!

Account Management Department

In the first 4 months, Jenny had an opportunity to experience the London-based Account Management team up close and personal. Through face-to-face training, she was able to gain a comprehensive understanding of their roles and working styles. She took part in numerous activities that honed her resourcefulness, like looking after small client accounts, sending emails and calling clients, preparing presentations for meetings and organising trips all while attending various events too.

Upon the end of her 4 months, Jenny gained a wealth of new skills. She developed proficiency with Zoho CRM for emailing, creativity with Powerpoint for presentations, as well as obtaining knowledge from the Data Warehouse to produce reporting – enhancing her analytical acumen. Additionally, she strengthened her communication skills giving her great confidence going forward.

Marketing Department

Jenny engaged in a stimulating 3 months at the company’s Marketing department, gaining an invaluable learning experience. Under the guidance of the Marketing Manager, she learnt new skills that included crafting captions for social media campaigns, preparing email communications for clients, conducting market research as well as liaising with event organisers for Money 20/20.

At the end of her three months, she came away having gained an abundance of knowledge. She was able to further develop her marketing skills, learning new platforms such as Google Analytics, Hootsuite, Canva and Jaspa, and honing her already existing skills in terms of being more on the go, creatively engaging with language and researching for marketing purposes.

Sales Department

Jenny was eager to begin her journey in the Sales department, and the Chief Commercial Officer’s guidance on the first couple of weeks provided valuable insight. Jenny initially received 1-1 training from all the Business Development Managers and had the opportunity to observe prospect calls where she learnt more about negotiation techniques. She quickly familiarised herself with her role as a ‘Sales associate’, engaging in activities such as cold calling, emailing potential prospects, extracting data reports, and attending events. Jenny’s enthusiasm and dedication to these tasks proved to be beneficial for one of the Christmas campaigns she was involved in at the time – her efforts yielded a considerable number of leads that proved fundamental to the business.

After 3 months of hard work, she emerged a more engaging communicator. Her newfound confidence lent itself to tailoring her emails and calls to fit a more sales-driven approach. She even became adept at dealing with rejections in the course of cold calls and other situations where she received no response. In short, her communication skills were vastly improved due to her diligent training over the previous months!

The end of her internship at B4B Payments

Overall, her experience was a rewarding one in every sense of the word; she gained valuable knowledge from attending events and socialising with people from different vocations. By far the most engaging aspect was that everyone at B4B made her feel as though she were truly part of their family; appreciated for the work she put in and making a difference. It was evident that this internship allowed her to get an exclusive peek into what operations at financial services would be like, a great starting point to head into real-world roles!

We’re so pleased to announce that Jenny Lama has completed her internship with B4B Payments. Jenny came to us last year from her studies at The University of West London as our first ever intern. Over the last year, Jenny has spent time in Account Management, Marketing and Sales where she has been working with the various teams and learning all about the business from different aspects.

We’ll miss Jenny’s smiling face in the office but we know she’ll make a success of whatever she chooses to do in life. B4B will be looking for a new intern in September.

B4B Account Director and Jenny’s Sponsor, Tim Robson

Applications for the internship programme will start in July 2023! In the mean time, if you have any questions please email careers@b4bpayments.com.

With economies across the globe on the brink of recession, retaining important figureheads in business has never been more important.

Some minds would automatically flip to customer retention, and rightly so – customer churn rate can be as high as 30% in some global industries, and as cost of living increases, we can only expect this to rise. However, it’s not only customers that will help businesses sail through hard times. Retaining staff and partners is crucial to keeping businesses afloat, recession or not.

Creating reward and incentive programs for employees, partners, and customers alike could be the key to maintaining a healthy business in the near future. But with different needs, cultures and locations to take into consideration – a one-size fits all approach is hard to come by.

Are you incentivising the key players in your business? Read on to find out the different approaches to incentives, how they can help your business, and what B4B Payments can do to give you the master key for you

What are incentives?

Rewards and incentives come in all shapes and sizes. Whether you’re focused on B2B, B2C, or B2B2C, there’s always a way you can utilise incentives to create value, loyalty and retention for customers, partners and employees.

Customer loyalty rewards

84% of global customers are more inclined to shop with retailers if they offer a loyalty reward programme or scheme. Some of the popular types include: 

Point based reward systems

Offering customers points in return for their purchases or continued service is an effective incentive to encourage them to stay a loyal customer. Points are usually tradeable for certain prizes, products or cash sums through these types of loyalty schemes.

Tiered incentives

Cashback incentives can be offered to customers that hit a certain tier level with their purchasing. With tiers completely customisable by companies themselves, often taking the form of length of contract or amount spent, they are a great way to ensure that people are getting extra value for their custom.

Omnichannel incentives

Want to inspire customers to use different channels in your business? Offering cash rewards or discounts to customers who are purchasing or completing actions on different channels like mobile applications is the way to go. Not only can these incentives phase out the resource intensive channels like phone or email.

Staff retention incentives

Retaining trained employees has never been more important than it is today, and with 74% of employees saying that incentives and rewards were important to them, offering schemes like this can be an easy win to keep them onside:

Time-based incentives

Rewarding staff for their ongoing service, or keeping employees happy during the holidays is becoming more common in competitive industries. Through prepaid or cash offerings, your staff are motivated to stay with your business until the next milestone, and are more likely to be satisfied when they return from traditional periods of annual leave.

Target based rewards

Traditional bonus schemes are a great way to incentivise staff to go the extra mile while in service, whether it’s based on deals completed or targets met. Offering percentages of business deals, or flat rate recurring bonuses through prepaid cash cards will help retain staff, as well as attract new employees to the business.

Partner incentives

Partners are among the most important people in your business, and may hold the key to continued business. In fact 57% of companies use partnerships to acquire new customers. Popular ways to incentivise partners include:

Referrals

Rewards based on referrals are popular for partners and individuals alike. Schemes that involve cash incentives for business referrals can bring new business into your organisation, negating some of your existing sales and marketing process.

Research

Knowledge is power, and market research is the key. Rewards for partners who engage in market research is a great way to strengthen connections, as well as ensuring constant visibility on the state of B2B and B2C markets.

How incentives help

Incentives provide a constant reason for staff, employees and partners to continue to interact with your business.

However, in an international, diverse, and often remote-based society the trend for the instant gratification of cash is emerging moreso. In fact, 84% of remote employees surveyed named prepaid cards their preferred reward.

Not only is cash universally accepted for partners, employees and customers around the globe, it also eliminates the need to navigate cultural and political trends, as well as logistical issues that can stem from availability and delivery of alternative physical rewards.

The B4B Payments solution

B4B Payments allows businesses to execute their rewards and incentives scheme in one unified manner – thorough physical and virtual (closed and open loop) services.

Prepaid virtual and physical cards can be distributed as rewards on incentive schemes to partners, customers and employees alike to encourage referrals, repeat business and retention. Instead of receiving bespoke rewards or gift cards that can only be redeemed in certain stores, B4B Payments allows payments that are recognised internationally, and managed through an easy-to-use iOS or Android cardholder app, giving your recipients the oversight on their spending and remaining balance.

What’s more, B4B Payments allows you to brand your card services, extending the reach of your marketing efforts, as well as incentivising the key players in your business.

Discover more about B4B Payments engaging rewards and incentives

Looking to add prepaid virtual or physical cards into your incentive schemes? Take a look at how B4B Payments’ solution can help you maximise your goals through seamless reward payments.

To find out how our solutions can help you, contact us today!