Trajectory Verified and Systems Go:
Prepare for Orbit
Prepare for Orbit
In a recent study (Sep 2018) published by Goldman Sachs on the B2B payments space, the global payments business was estimated at over $120 trillion of commerce annually and is anticipated to grow to $200 trillion over the next decade. What is surprising (and opportunistic) is what we see as an incredible lack of efficiency currently in the space. As an example, in the United States alone, over 50% of the B2B volume is still remitted by paper checks, which can cost businesses up to $22 per instance to process. In fact, it is estimated that businesses incur over $2.7 trillion in annual B2B administrative costs – 80% of which is paid by small business. Technology has the potential to cut these costs by up to 75%, meaning there is a potential $1.5 trillion opportunity for those that can bring solutions to bear against this challenge: enter Priority Commercial Payments and our proprietary CPX platform.
In the past year, our Commercial Payments division has advanced steadily on this lucrative new channel of business, being awarded what we believe are some of the most sought-after contracts in the B2B payments space. A standout example of this is the recently announced business partnership with Restaurant 365.
Restaurant 365 is an industry leader in integrated restaurant management software and represents a $6.5 billion opportunity. Our CPX Automated AP system will be directly integrated into their platform – allowing us to support their merchants in making payments to vendors and suppliers. This relationship will allow us to offer merchant acquiring services to those restaurants as well – increasing the potential of the business tremendously.
In the past year, our Commercial Payments division has advanced steadily on this lucrative new channel of business, being awarded what we believe are some of the most sought-after contracts in the B2B payments space.
Along with this and other notable wins, Commercial Payments has seen strong growth from within: CPX Acquiring grew approximately 36% on a year over year basis and the Supplier enablement team exceeded the previous year’s performance, closing approximately 41% of all leads generated. Additionally, ACH.com was awarded the business of Daxko, a leading supplier of solutions for health and wellness software, making them eligible to handle between $800K and $1M per month in total transaction volume.
From a technology perspective, we believe the CPX Portal continues to extend its competitive advantages, adding full support for Virtual Card, ACH and Check. It is now completely operational and supporting several hundred corporate buyers and thousands of suppliers. Additionally, aspects of some of the larger integrations taking place with clients like those described earlier will further enhance and extend the reach of our proprietary commercial payments platform.
Automation of pre-payment workflows (i.e., AP Automation) has been noted as the biggest near-term opportunity in the entire payments ecosystem. With a proprietary platform, a seasoned team of industry experts guiding the business and the recent success stories creating enhanced visibility of the enterprise, we are confident Priority Commercial Payments is well positioned for a breakout performance in 2019.