American Express adds B2B payments link to Paymode

American Express has launched a new B2B payments feature within Buyer Initiated Payments that links eligible customers to Bottomline's Paymode network.

It is also adding automated invoice reporting tools to Buyer Initiated Payments, or BIP, to help match invoices to payments and reduce manual processing for buyers and suppliers.

The move expands a product that lets buyers initiate electronic payments to suppliers instead of using paper cheques or ACH. The new BIP Connect feature gives eligible customers access to Paymode, which American Express described as one of the largest B2B payment networks in the US.

Suppliers on the network will receive funds through Premium ACH via Paymode, while buyers continue to use their existing American Express BIP accounts. The arrangement includes authentication and fraud controls embedded in the payment flow.

Payment friction

The launch comes as businesses continue to wrestle with slow, error-prone invoice processes. Research commissioned by American Express found that 67% of financial decision-makers believe payment inefficiencies make it harder for their business to operate at its full potential.

The same research pointed to strain on day-to-day operations. Buyers and suppliers said they spend about a month on average processing an invoice payment, while financial decision-makers reported spending an average of 37 business days a year processing and correcting invoices.

Manual work remains a central issue. According to the survey, 82% of financial decision-makers said manual invoice processes increase the risk of costly human error, and 90% said they had experienced payment errors over the previous 12 months, including duplicate invoices, price variances, and incorrect payment information.

The invoice reporting changes are intended to address that burden by using data directly from suppliers' systems to improve visibility into invoice status and support more accurate payment matching.

"We know our business customers are looking for simple and seamless ways to pay their suppliers. That's why we're building on BIP's strong foundation of payments automation and working capital flexibility with innovations that make it even stronger," said Eva Reda, Executive Vice President, Global Commercial Services Products, American Express.

"With BIP Connect, we're combining the strengths of American Express and Bottomline to accelerate supplier onboarding and provide seamless access to one of the largest supplier networks in the U.S. We're also creating a better payments experience for buyers and suppliers by delivering capabilities that can help drive more on-time payments," Reda said.

Supplier network

Bottomline's Paymode network includes authenticated and verified suppliers across sectors including manufacturing, healthcare, commercial real estate, and higher education. By linking to that network, American Express aims to expand the number of suppliers BIP customers can reach without changing their existing payment set-up.

The changes are part of a broader push to make invoice-based payments easier to manage for both sides of a transaction. The survey found that 92% of buyers and 91% of suppliers agree that improving the invoice-based payment experience for the other side is becoming more important in business relationships.

Another 65% of financial decision-makers said inefficiency in invoice and payment processes makes it harder to maintain strong supplier-buyer relationships. A further 61% said employees spend too much time resolving invoice- or payment-related issues.

For buyers, delayed or inaccurate processing can also carry direct financial costs. About 37% of buyers surveyed said invoice-based payment challenges lead to higher expenses or missed savings, such as late payment fees or lost early-payment discounts.

"Getting paid shouldn't be complicated," said Casey Klyszeiko, Executive Vice President, Global Merchant and Network Services Products, American Express.

"As more businesses look to modernize B2B payments, American Express is helping connect buyers and suppliers through a more integrated and automated invoice payment experience that simplifies accounts payable and receivable, streamlines workflows, and makes it easier to do business together," Klyszeiko said.

Rollout plans

BIP Connect is now available to eligible Buyer Initiated Payments customers. The automated invoice reporting functions will be released later to a subset of BIP customers.

The research behind the launch was based on an online survey of 521 US business owners and financial decision-makers who oversee functions such as invoice-based payments, accounts payable and receivable, reconciliation, business spend, cash flow, and working capital. The sample included buyers, suppliers, and respondents who act as both.

Bottomline Chief Executive Officer Craig Saks said the partnership is intended to simplify money movement between businesses while improving visibility and reconciliation.

"Our collaboration with American Express reflects a shared commitment to helping businesses simplify and modernize the way they move money," said Craig Saks, Chief Executive Officer, Bottomline.

"Bringing Paymode into BIP gives organizations greater visibility, stronger payment security, and a more connected payments experience, while helping vendors streamline reconciliation and improve cash flow management," Saks said.