Wholesale buying group rolls out banking solution to reduce wholesalers' card charges
Wholesale buying group Sugro is offering its members the chance to significantly reduce costly card transaction charges thanks to a new open banking service.
The Nantwich-based business has agreed a deal with technology solutions provider, b2b.store, to roll out its B2B Open Banking module to its wholesale members – giving them the chance to implement the payment method quickly and easily.
B2B Open Banking allows wholesalers to accept payment by bank transfer and is an extremely secure means of settling account balances, offering a fast and convenient method at a fraction of the costs associated with credit-card and direct-debit transactions.
At a time when wholesalers’ margins are tightening even more than usual due to the rising costs of energy, transport and food production, open banking provides the chance to drive cost efficiencies through their business.
“Open banking technology has the potential to be a gamechanger for wholesalers at a time when they need it most,” said Sugro’s Head of Commercial and Marketing, Yulia Petitt.
“In recent years, the cost of processing payments for credit and debit cards has risen significantly and B2B Open Banking’s competitive pricing structure removes much of that burden by coming in at a much lower percentage.
“Not only that, but using open banking also helps with a wholesaler’s cash flow because money is paid into a bank account almost immediately compared to the two or three days for card payments to clear.”
Open banking has grown in popularity in the UK over the past few years, with b2b.store further enhancing users' experience by devising B2B Open Banking payment links that can take customers directly to a secure payment screen with one tap. Customers then only need to enter some identifying details and select a bank for the transaction to be set up.
The B2B Open Banking links can be included in any form of communication or as a preferred-payment method on invoices, making it easy for wholesalers to introduce the technology to their customers and encourage adoption.
B2B Open Banking can also be integrated into current eCommerce and accounting software quickly and easily, so Sugro hopes uptake from its membership will be high.
“We’re delighted to have reached an agreement with Sugro to offer B2B Open Banking to their members,” added b2b.store CEO Rob Mannion.
“We see the technology as an important tool for wholesalers as they continue to streamline their businesses and drive cost efficiencies in the current climate.
“By cutting card transaction charges, wholesalers can pass on some of the cost savings to customers in reduced prices too, making for an extra reason for customers to spend with them and spreading the impact across the entire business.”
