Author: r b

How embedded finance can help drive business growth and bring benefits to your organisation

In recent years, embedded finance has been making waves in the business world, allowing organisations to offer their customers additional services, simplify transactions, and improve customer loyalty.

The new possibilities brought about by embedded finance even led Andreessen Horowitz’s Angela Strange to remark in 2019 that “every company will be a fintech”.

While that prediction may or may not come to pass, the emerging truth is that embedded finance in businesses of all sectors is providing opportunities for growth.

What is embedded finance?

Embedded finance is the integration of banking systems into non-banking organisations – for example, when a business offers ‘buy now pay later’ options on purchases, offers loans, or uses branded debit cards. The likelihood is that these businesses are not registered banks, as acquiring a banking license entails adherence to strict regulations and meeting significant capital requirements.

Instead, to offer these services to customers, businesses partner with a Banking-as-a-Service provider who lease their licensed online banking services to non-banking organisations.

This is all facilitated through the use of an API (application programming interface) which is essentially a type of code which allows a business’s system to speak more easily to a bank’s, allowing businesses to ‘plug in’ to a bank’s specific financial service and pick and choose which parts of the overall banking provision they want to opt into.

This means that when, for instance, a customer chooses to pay for a sofa on finance, it’s not the furniture company they’re borrowing from, but the bank that is providing the furniture company’s financial services.

What are the benefits of embedded finance?

It leads to happier customers

The pain point of needing to seek credit elsewhere can be eliminated with embedded finance options, which leads to a more streamlined purchasing experience. Customers don’t need to interact with multiple organisations to make a purchase, and are therefore less likely to abandon carts at checkout.

This improved overall experience means that customers are more satisfied with your business, are more likely to return in future, and have a higher likelihood of developing brand loyalty.

It can be used to offer incentive schemes to customers

Using reward and incentive schemes is a sure-fire way to build brand loyalty among customers. With embedded financial options, brands can go beyond the tried and tested “stamp card” by offering valuable and meaningful services to customers that also propagate loyalty.

An example of this is the Tesco Clubcard Pay+; a Tesco branded debit card which earns Clubcard points whenever it’s used, and extra when used in a Tesco store. It allows customers to ringfence their grocery budget on a Tesco debit card, and integrates the Tesco brand and the loyalty scheme into the customer’s daily purchasing habits.

This is what customers want

Embedded finance schemes and services have seen huge take-up from customers in all sectors, proving that they are answering problems and providing value to consumers and clients.

One example is the Starbucks App and card system, which allows customers to transfer money to their Starbuck’s account so that they can quickly pre-order coffee. In the US, it was reported that Starbuck’s had more money loaded onto Starbucks cards and their app in 2016 than many banks had in deposits. 41% of their custom was carried out through the app/ Starbucks card.

You can gather additional data on how your customers behave

With embedded finance options, new opportunities to better serve your customers can become apparent via the additional data that can be harnessed.

Embedded finance services offer many ways for your customers to interact with your brand, and offer insights into how your customers behave, how they spend their money, and how they interact with your services, depending on the financial service they’re using.

This data can be leveraged to uncover trends, offer more personalised deals and marketing, and inform business operations at a decision-making level.

The solution you choose depends on your business and your goals. At B4B, we have a range of embedded financial services that can drive growth and bring benefits to your organisation. Get in touch with our advisors to discuss your needs.

Incentives & Perks Newsroom

How branded payments solutions can help you boost customer loyalty and drive growth

Providing customers with a compelling reason to stay engaged with your brand is crucial to driving growth through 2022 and beyond

While some industries have thrived and others struggled through the pandemic, all companies have one thing in common as we move into 2022: the need to redefine their relationships with consumers and keep up with rapidly-changing expectations.

While a Ranstad study found that 1 in 4 UK employees expect to change jobs in the next year, consumers are just as ready to shake things up. Having spent two years enduring pandemic-related disruptions from queues and one-way systems to extended call centre waiting times, customers are rapidly growing impatient with brands who aren’t delivering the level of experience they expect.

Customer loyalty has never been so important, and providing customers with a compelling reason to stay engaged with your brand is crucial to driving growth through 2022 and beyond.

Loyalty schemes for 2022: what’s changed?

Customer loyalty schemes are nothing new – from collecting Betty Crocker box tops in the 1930’s to collecting miles as a member of American Airlines’ Frequent Flyer program in the 1980’s to the meteoritic rise of Tesco’s Clubcard in the 90’s, brands have been incentivising repeat business from their customers for decades.

These days, paper vouchers or points schemes can feel a little old hat, however. A new wave of loyalty schemes based around branded payment cards is offering customers more flexibility and better value, and in return driving increased loyalty and growth for the brands who are using them. Not only is a branded card a convenient reminder of your company, every time a customer opens their wallet it can be used in a myriad of ways to suit your specific business goals.

So how can brands use branded payment cards to cut through the noise and create a loyalty scheme that really stands out?

Emotional connections

More than ever, consumers are seeking emotional connection with brands. In the early days of the pandemic, brands scrambled to accommodate and support their customers through a frightening and stressful period, and learned the value of adding a human touch to their interactions with customers.

Branded payment cards can help you keep track of your customers’ spending habits, and understand what they value. They can also be a useful method of supporting customers’ overall financial security and making their lives easier. For example, Tesco Clubcard Pay+ allows customers to ringfence their grocery budgets by transferring funds to their Tesco Debit Card. In return they get extra Clubcard points – and therefore more incentive to spend at Tesco.

Sustainability

Your company’s green credentials have never been so important. According to McKinsey, the use of sustainable materials is a key purchasing factor for 67% of consumers, and Forrester research states that 47% of consumers regularly buy from brands who share their values.

Offering an eco-friendly plastic, or even fully virtual, loyalty card can help your brand demonstrate its CSR credentials. Loyalty schemes could also be structured to benefit the causes that matter to your business rather than customers directly – for example, making a donation to a charity or food bank every time a customer spends with you. Providing ethical incentives to shop with you can be just as powerful as providing direct financial incentives for doing so.

Flexibility

Another COVID-led shift in behaviour that’s unlikely to go anywhere is the increased expectation for flexibility. Mid-pandemic, brands introduced more flexibility into their offerings than ever before – extending deadlines on loyalty points, adding no-fee cancellation and change facilities to bookings, and expanding their support for contactless payment and varied delivery or click-and-collect options. Having seen the value of these offerings, consumers are unlikely to want to give them up post-pandemic.

Branded payment cards are a fantastic method of managing the extra flexibility that customers have grown to expect. Refunds and credits can quickly be applied to a branded card, which offer far more flexibility and convenience than vouchers or points.

Buy now, pay later

Buy now, pay later (BNPL) has boomed in recent years and the trend shows no sign of slowing. With the continued rise of fintech and alternative payment methods and shift to a subscription-led approach across many brands, the option to buy and return items quickly and flexibly, and split payments on items you do choose to purchase, is proving increasingly popular, with Adobe data suggesting that instalment payment spending increased by 422% in the last quarter of 2021 compared to 2019.

Offering a branded payment card attached to a credit line is an easy method of offering your own BNPL scheme – and with data suggesting that more than 49% of people spend more when using BNPL than they would on a credit card, BNPL can provide a much-needed boost to your bottom line.

Not just customers

Branded payment cards are a versatile method of building customer loyalty, with an option for almost every brand. They’re not just for customers, though – remember the 1 in 4 employees who are likely to make the leap into a new job this year? Employee experience is also under the spotlight in 2022, and a branded card scheme could also help to build trust and connection between your company and your staff, helping to improve employee loyalty and retention too.

Using prepaid cards to manage expenses and departmental spending gives staff more control and autonomy in their roles, helping improve motivation and morale and helping day-to-day processes run more smoothly, reducing stress. Branded cards as a method of paying out gifts, incentives and benefits is also perennially popular – cash looks good on everybody, and there’s no risk of potentially alienating employees with a gift that conflicts with their personal preferences or religious beliefs.

How could branded payment cards work for you?

Consumers now expect more from your brand than ever – flexibility, sustainability, transparency, and an emotional connection. While customer experience is a constant focus, branded payment cards are a great way of building loyalty and demonstrating some of those values to your customers.

There are so many innovative ways you could use prepaid cards to drive customer loyalty and business growth. To find out more about how a branded card scheme could work for your business, call us on 020 3137 3420 or email us at sales@b4bpayments.com.

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Newsroom

How to Accelerate the Shift to Cashless Payments in Universities with B4B payment cards

The UK higher education sector boasts over 2.5 million learners and almost half a million staff

With so many people spread across multiple sites and numerous departments, managing spend and expenses can be a huge burden on financial and administrative staff.

Cash payments are a particular headache – they’re difficult to track, a pain to reconcile, and require in-person chase up to collect physical receipts. More worryingly, they could also put universities at risk of falling foul of Anti Money Laundering regulations if they accept cash payments. Universities accepted £52million in fees paid in cash over the past five years, including funds from China, India, Russia and Nigeria, risking complicity in laundering the proceeds of illegal activities in these countries.

It’s no surprise, then, that higher education institutions are working to reduce their reliance on cash payments and promote alternative options in multiple areas of their organisations. The rise of contactless payments driven by COVID, as well as generational differences in attitudes to cash (teenagers are 4 times less likely to use cash than the general public), are set to accelerate this shift even further.

A university-wide prepaid card scheme is a powerful method of accelerating the shift to cashless payments across campus. Here are some of the ways universities could benefit from launching their own card scheme:

Staff Expenses

Prepaid cards can make managing staff and departmental expenses a breeze, taking pressure off the finance team and giving staff more control and autonomy, whilst making it easier than ever before to keep track of spending on everything from travel expenses to petty cash and materials.

Cards make it easy to ensure that spending fits with their intended use. They can be configured to whitelist or blacklist certain stores based on approved supplier lists, for example, or restrict ATM or online usage if cards are intended only for travel expenses.

Budget can be applied to a pre-paid card in whatever increment is most suitable, with the option to set auto-top ups to bring cards up to a set amount on a regular basis, plus the ability to manually load cards with higher amounts when required.

For staff, contactless pre-paid cards offer the flexibility to shop at a wide range of locations, as well as a secure cardholder app to keep track of card balances and upload photo receipts.

Pre-paid expense cards also offer powerful reporting features – a central management platform provides real-time data on balances, allows transactions to be categorised by department or accounting category, and integrates seamlessly with your accounting software for easy reconciliation.

Visitors and Volunteers

Prepaid cards don’t need to be limited only to registered staff and students – they can be a great way of welcoming visitors or volunteers and making sure that they’re taken care of during their time on campus.

Cards can be ordered ahead of time and kept on-site ready for activation and loading. So, for example, volunteers or student ambassadors supporting with events could be given a pre-paid card when they sign into the university with money to purchase lunch, usable at any of the university’s stores or concessions. Alternatively, at the end of the day, volunteers could walk away with a prepaid card to show they are valued and appreciated.

Student Experience

With Gen Z far more likely to rely on cards than cash in their day-to-day life, cashless payment is likely to be an expectation for their university experience too.

Prepaid cards can form part of a recruitment and engagement strategy for prospective students – by offering expenses or on-site meal funds via a pre-paid card, potential new students would have an enhanced experience of visiting campus open days, and a lasting reminder of their visit in the form of the card, which could be used as a future incentive for ongoing engagement with the recruitment process.

For current students, prepaid cards could be a longer-term method of driving engagement and participation with volunteering or university activities – with the added bonus that restrictions can be placed on card usage to prevent funds being spent on alcohol, gambling or other things which might not be considered desirable.

Prepaid cards can also be a perfect method of funding student events and club or society activities. Student union and society fundraising activities can often leave students in charge of large budgets, and ensuring that funds are used appropriately can be a challenge. Giving society committee members pre-paid cards puts them in control and gives them the power to lead and manage society activities independently, whilst ensuring that funds are secure.

Scholarships and Support

Pre-paid cards can also be used to support students through more challenging times. Paying student hardship funds or other bursaries via pre-paid card is efficient and cost-effective, and payments can be scheduled to ensure that money reaches students at the right time, or even sent via a virtual card if support is needed urgently.

A pre-paid card gives students the flexibility to withdraw or spend their money at millions of locations worldwide. This makes it a perfect method of transferring funds to international students, who may not have access to a UK bank account, without incurring foreign transaction fees.

How could prepaid cards work for you?

While many universities were already working to reduce their reliance on cash payments, COVID has unsurprisingly accelerated this even further. Prepaid cards can go a long way towards streamlining and tightening up finance processes, and can have wider benefits on student and staff experience, too.

To find out more about how we work with universities and how we can help you, call us on 020 3137 3420 or email us at sales@b4bpayments.com.

Company News Newsroom

B4B Payments extends partnership with Innovate Finance to become high growth member

We aim to work closely with the Innovate Finance community to help members reach a wider market of customers, via our scalable and secure payment capability

B4B Payments, a leading global provider of card issuing solutions for businesses, today announces it has become a high growth member of Innovate Finance, the independent industry body that represents and advances the global FinTech community in the UK. B4B joins other leaders in the FinTech field to sit at the heart of the UK’s FinTech network, assessing new ideas and emerging trends, and building relationships that can further advance innovation in the financial services sector.

This latest partnership comes as B4B Payments continues to expand its portfolio of payments solutions for businesses, providing an unrivalled scope of financial services and product capability. By developing new connections and networks through Innovate Finance’s High Growth membership, B4B can continue to achieve its mission to make innovative payment capabilities instantly accessible for all businesses that need it.

With our new capabilities expanding from cards into corporate payments and FX we are looking forward to collaborating with other Innovate Finance members to drive new opportunities to embed our regulated finance features into their own products to reach a wider market of customers.
CEO of B4B Payments, Paul Swinton

Incentives & Perks Newsroom

B4B prepaid cards are the perfect choice for your tenant reward schemes

The pandemic has shaken economies around the world and communities across the UK

People have lost their jobs, housing association spend per home has declined and both tenants and landlords have faced extreme financial hardship. According to Inside Housing, rent arrears in the social housing sector peaked £1bn at the end of 2021. The rising cost of living has also been a contributing factor to these statistics.

Landlords are facing increased operating costs against a backdrop of complex challenges. We are working closely with our members and the wider sector to contextualise the impact of the pandemic and provide the on-time insight and forecasts they need to take mitigating action with confidence.
Chief Executive of HouseMark, Laurice Ponting

These financial challenges have contributed to broken rental agreements and in some cases less upkeep of property, ultimately costing Housing Associations extra time and money.

Give a little back

One solution that can ease this problem is by introducing a reward scheme using our prepaid card, simply to give back and say thanks. The scheme can help encourage good behaviour and loyalty, boost community involvement and more. It’s up to you how and why you want to reward your tenants, maybe they are up to date with rent payments, keep their property clean and tidy or have been a good neighbour.

Our prepaid cards are suitable for any type of rewards and can be topped up at any time and every penny will be recorded. With the ability to issue cards as closed-loop or open-loop, you can tailor your offering to suit your tenants needs.

Our offering

Depending on your minimum order, we can add your branding to our cards. Tenants can keep this card in their wallet/purse, and each time they make a payment it will create a positive association with your company.

There are also many other features to our cards including:

Load money on cards in bulk or individually on your management platform
View real-time float statements and transactions
B4B app features real-time SMS notifications

To learn more about the benefits of our products, click HERE.

Case studies Newsroom

Ad Agency partners with B4B to streamline media buying and standardise reconciliation

Imperious Media are an e-based marketing agency specialising in SEO, Web Design, and Advertising.

Since Imperious Media were founded, they have created and managed over 1500 promotional campaigns on social media, on behalf of their clients. They use online advertising to get brands and products in front of buyers quickly and easily, whilst raising awareness and increasing visibility..

A reliable solution

When agencies such as Imperious Media use methods such as traditional cards, or bank transfers to pay for advertising, spend cannot be segregated per client or capped by maximum budget limits. Imperious Media were tired of receiving what they described as ‘really bad support’ and being stung with fees at the end of the month.

In 2020, they chose B4B Payments to provide a quick and reliable prepaid payment method for advertising. Our all-in-one virtual prepaid card is powered by an intuitive, easy to use platform which offers real time spend control of card activity for better management of advertising campaigns.

The platform is so amazing and right on point, makes it very easy to use. It’s super practical and I am able to conduct my business way faster and not struggle with all sorts of problems, this makes me focus on running the actual business way more.
Imperious Media CEO, Stefan Radulescu

Imperious Media, like many other smart and savvy ad agencies, use B4B Payments to gain full financial visibility via the portal, with the ability to manage budgets all in one place, checking account balances which are updated immediately, and monitoring campaign spend at-a-glance.

This simplifies media buying activities and increases efficiencies by removing tedious reconciliation processes and providing clear and concise reporting. The result is a robust solution which allows Imperious Media to save time and money on an ongoing basis when managing ad campaigns on behalf of their clients.

We’ve been working with affiliate marketeers like Imperious for many years, we’ve found that with simple pricing and easy systems, we can support their businesses so they can concentrate on client satisfaction.
B4B Payments Account Director, Tim Robson

Company News Newsroom

B4B Payments selected to join Mastercard Fintech Express Programme

B4B Payments, a leading global payments provider, is pleased to announce it will join the Mastercard Fintech Express Programme.

As part of the Mastercard Developers initiative, it is set up to provide support in obtaining licensing for issuing Mastercard prepaid, debit and credit cards either directly with Mastercard or through its qualified ‘Express Issuance’ partners.

For more than 15 years, FCA authorised B4B Payments has been deploying instant and secure prepaid solutions to the business community. The award-winning company enables organisations of any size to manage payments, expenses, gifts, or rewards quickly and safely, all via automated and streamlined processes, embedded within its powerful platform.

Joining the Fintech Express Programme is a natural next step in cementing the relationship with Mastercard. In 2020, B4B took its first steps within the scheme as Principal member, which provided B4B access to the worldwide acceptance network as card issuer. This extended partnership aligns with B4B’s mission to make innovative payment capabilities instantly accessible for all businesses that need it.

Paul Swinton, B4B Payments CEO said: “We are absolutely thrilled to join the Mastercard Fintech Express programme to quickly support organisations to go live with Mastercard with our turnkey solution. As we continue to disrupt business payments by providing quicker, more efficient, and cost-effective cashless pay-outs, this partnership will help us deliver more choice to organisations looking to scale and succeed via the power of seamless payments.”

Jason Lane, EVP, Market Development, Mastercard Europe commented: “We are pleased to welcome B4B Payments into the Fintech Express Programme. We look forward to further developing our relationship and are confident that they will continue to benefit from our extensive network and resources.”

Company News Newsroom

B4B Payments shortlisted for two awards at the FS Tech Awards 2022

B4B Payments is shortlisted for the FS Tech awards in Best Use of Mobile and Financial Inclusive Award.

B4B Payments is delighted to have been shortlisted for the FS Tech Awards 2022 in two categories. The nominations are in the Best Use of Mobile and Financial Inclusion categories. The FS Tech Awards celebrates excellence and innovation within the UK and EMEA financial services sector.

B4B Payments have been recognised in both categories for our rapid response during the pandemic, where we provided a quick and secure payment solution for NGOs tackling some of the biggest social problems in the world. Our easy-to-use mobile app made financial services more accessible, for migrants and victims of modern slavery. By reducing risk, streamlining processes and modernising the support they offer, a large number of charities were better placed to increase the number of people they could help during the initial stages of the crisis.

Winners will be announced on 17 March 2022 at the Awards Gala Dinner.

Company News Newsroom Uncategorised

B4B Payments signs deal to join the Banking Circle ecosystem

Leading provider of B2B issuing solutions will become part of Banking circle ecosystem.

www.bankingcircle.com

www.b4bpayments.com

London, 16^th November 2021 – B4B Payments (B4B), a leading global provider of card issuing solutions for businesses, is set to join the Banking Circle ecosystem to complement the Banking Circle payments Bank, providing accounts, payments and issuing to Payments businesses, Banks and Corporates. The deal is now going through the regulatory approval process. After closing of the acquisition, B4B will operate as an independent sister company of Banking Circle.

Together, Banking Circle and B4B will form a unique industry-leading provider of issuing and payment solutions with full value chain-coverage and scalability. As part of the Banking Circle ecosystem, B4B will continue to expand its portfolio of payments solutions for businesses, providing an unrivalled scope of financial services and product add-on optionality with wide reach and distribution power.

The management team will remain with B4B and will continue to lead the company going forward. In addition, Tom Jennings and Brian Lawlor, both with over 15 years of experience within the payments and issuing industry, will join B4B’s management team to help scale the business.

Paul Swinton, co-founder and CEO of B4B Payments, commented: “We are thrilled to become part of this fast-growing and innovative organisation. Under the new ownership we will have access to the investment and financial infrastructure to build on and accelerate our expansion across Europe and the US, and to expand our portfolio of payments solutions for businesses. In addition, we plan to launch a unique BIN-sponsorship proposition, building on B4B’s leading issuing capabilities and Banking Circle’s financial technology platform.”

Anders la Cour, Chief Executive Officer of Banking Circle Group added: “We are very excited that B4B is joining the Banking Circle ecosystem. Banking Circle is growing rapidly in both its customer base and its service offering, and B4B Payments is a natural extension of that evolution. Together with B4B, we can provide Banks and Payments businesses with additional capabilities such as card issuing, built on top of our core platform of payments, accounts and liquidity. We look forward to working closely with the B4B team.”

Company News Newsroom Uncategorised

B4B launches sustainable card solution for its corporate customers

Roughly six billion payment cards are produced annually worldwide, with 75% of gift cards still being actual physical cards.

The environmentally-friendly card material made from 76% recycled post-industrial waste, will help B4B Payments reduce the amount of plastic produced for its payment cards every year.

Paul Swinton, Chief Executive Officer at B4B Payments said:

“Whilst the adoption of virtual cards is accelerating and our range of digital solutions continues to expand, we are committed to reducing the impact of card production on the environment, by using sustainable card materials.”

When considering our role in tackling environmental challenges, it was vitally important that we could maintain the superior card quality that our clients and card holders expect, but combine it with sustainable production techniques and materials that will help us protect the environment for years to come. We are delighted that our extended partnership with Thames Technology lets us deliver that.”

As a leader in FinTech and business payments and voted the Best Prepaid Product of the Year in 2019, the extended partnership with Thames Technology allows B4B Payments to add to its cutting-edge card capability, providing more choice to its corporate customers. The card is produced using a post-industrial recycled PVC core along with degradable overlay and non-plastic components including chip and antenna for payment cards. Overall creating a sustainable payment solution that will help reduce its contribution to climate change.

Angela Davies, Head of Financial and ID Sales at Thames Technology said:

“We are delighted to be supporting B4B Payments in its mission to offer a more environmentally friendly card solution to its growing list of corporate clients. Thames Technology’s business commitment to sustainability during 2020 resulted in the launch of our Eden range; a selection of PVC alternatives ideal for both financial and retail use, so it’s extremely satisfying to see our clients embrace this.”

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Banking as a Service