Cirralto Limited (ASX: CRO) has revealed plans to transition to a digital payments company that makes processing B2B payments easier for its customers.
The company has commenced upgrading its current customer base with its Spenda suite of payments products. Currently around $250 million per month of gross billings are processed by businesses using the technology deployed by Cirralto and its merger partner, Appstablishment (APP).
The company has also started processing payments with more than $1.7m currently processed by customers through the Spenda platform. Cirralto earns an average merchant fee of 1.45% of the total value of transactions processed.
Managing Director, Adrian Floate, said B2B digital payments are estimated to be worth $100 billion annually in Australia.
Existing Business-to-Business (B2B) supplier payment services tend to be driven by big buyers and don’t deliver benefits to the supplier, rather they fragment supplier business processes.
Existing supplier-based B2B billing and invoicing platforms typically do not enable customers to pay multiple transactions in a single payment and don’t offer integration of the remittance into both the customers’ and suppliers’ accounting / ERP systems.
The Spenda family of payments products have taken B2B payments to the next level, providing a single platform that enables all businesses to get paid what they are owed, on time. B2B merchants’ transactions limits are up to 25 times greater than their retail counterparts.
While B2B merchants process fewer transactions than retailers, their transactions are substantially greater in value than retail to consumer (B2C) transactions. Additionally, B2B merchants are more invested in getting paid on time because of compliance obligations.
Mr Floate said SpendaCollect can process more than $25,000 in a single statement payment compared to the average retail transaction of less than $500. This is significant as far fewer merchants are required to acquire substantial blocks of revenue and market share in the payments space.
In addition, SpendaCollect enables customers to digitise their payments processes and take the next step in their digital strategy. SpendaCollect can be used by almost any industry making the addressable market in Australia alone conservatively greater than $100 billion in merchants’ payments.
Since the launch of the SpendaCollect product we have been flooded with interest from a really diverse cross section of the market,”Mr Floate said.
“The next step for our team is to implement processes that will allow us to satisfy the increased demand for our services.
“Cirralto is also excited at the upcoming B2B “Pay Later” and trade finance modules it plans to release with its partner Invigo.”
https://www.cirralto.com.au/
