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What is a multi-rail payments solution, and how can it drive growth for your B2B platform?

August 10, 2022

A solution for accepting payments is critical for any merchant. And B2B platforms that serve merchants, such as neobanks, marketplaces, and vertical-focused apps, are constantly looking for ways to make their solutions more compelling. So if your B2B platform could offer merchants a way to accept payments, you would have a great upsell opportunity. 

For example, imagine you are an accounting platform targeting small and medium sized businesses. If you can offer your SMB merchants a solution to accept payments, you benefit from:

a) a compelling new product that supports your core offering,

b) the ability to open up new revenue streams and generate more revenue per customer, and

c) increased stickiness of your platform, since leaving your accounting platform will also mean that your merchants need to integrate with a new payments provider first.

The Problem

The potential of this kind of value unlock should capture the attention of any B2B platform. However, offering a compelling payments solution is not straightforward. Let’s take a look at why this is the case. 

The most logical way to embed a payments solution into your product offering is to partner with a recognized and trusted payments provider such as Mollie, Stripe, or Adyen, which will ensure your merchants benefit from a reliable solution that includes a range of payment methods plus built-in risk solutions, and so on. But there are two key problems with this approach. 

First, if you partner with a single major payments provider, you are not adding significant value to your customers. As a critical business function, the overwhelming majority of merchants will already have invested in a solution that meets their needs, so there would be little reason for them to switch to your embedded solution. 

And second, every payments solution has limitations and risks. No matter how good a single payments provider is, they will always lack certain payment methods, optimizations, functionalities, and so on. 

Ultimately, if you embed a single payments provider such as those mentioned above in your product offering, you are passing on all its limitations to your customers, in terms of payment methods, risk management, and so on. And in a worst-case scenario, if the payment provider has downtime, this will impact your customers directly. 

Introducing Multi-Rail Payments – and why it benefits your merchants

However, there is a better option to embed a payments solution into your product offering – multi-rail payments.

As you can see, a multi-rail payments solution aggregates a range of payments solutions and brings all these together under a single Monite API. 

The concept is relatively straightforward, but the advantages are broad. With a multi-rail payments approach, Monite’s customers’ customers can benefit from the strengths of every payments provider, while reducing the dependency and risks associated with having a single solution. This means: 

  1. The right payment methods. Your merchants can offer the payment methods they want for their particular market or vertical, no matter what the limitations of any individual payments provider. 
  2. Ease of integration. Since it is a single API that aggregates connections to multiple players in the payments value chain, it is far faster and easier to do this than if a platform or merchant did this directly. 
  3. Lower costs. On a related note, since Monite is aggregating payment solutions for multiple platforms and an even greater number of merchants, the cost for the merchant to connect to multiple providers and solutions is far lower than if they did it themselves. 
  4. Redundancy. Even if one provider fails, or a connection is sub-optimal, there will always be fallback options if needed. 
  5. New revenue streams. You are able to generate more revenue per merchant through this compelling new product. 
  6. And finally, open banking optimization. Open banking is becoming increasingly important for many merchants. However, the connections of individual providers are not always airtight, and every provider has geographical limitations. With Monite, multiple connections means you benefit from the most stable connections and the widest geographical reach. 

With a multi-rail payments solution, your platform is in a position to offer a compelling and cost-effective alternative to your merchants’ existing payments setup. 

The Big Opportunity: building to be best in class, buying to be all-in-one

And beyond these benefits, there is a much bigger long-term prize. Resources dictate that most B2B platforms need to make a choice whether to build a best-in-class solution, or an all-in-one solution. But actually, there is a third way, which combines the best of both worlds. 

Embedded finance specialists such as Monite build financial automations at scale, and multi-rail payments is only one of the products that are on offer. Consider the huge range of financial automations that your platform could offer – invoicing, payroll, accounts payable, and expense management, to name a few. Building these out internally is a daunting task – expensive, time-consuming, and incurring huge technical debt. But by partnering with a provider such as Monite – which has already solved complexity and edge cases at scale – you can retain a core focus on building what makes you best in class, while simultaneously buying products that make you an all-in-one solution for your B2B customers. With this approach, you are in a position to leapfrog competition on either side of you, both those competitors building for best in class, and those building for all-in-one. All the while ensuring your solution is extremely sticky and with multiple ways to monetize. 

To find out more about multi-rail payments and embedded finance, get in touch by using the button at the top of this page! 

Accounts Payable Automation in Small Business

Managing cash flow is critical to small business success. That includes monitoring accounts payable for the products and services your company needs to grow your operations.Even with electronic accounting and.

Invoice Recognition and Invoice OCR API

August 4, 2022invoicing ocr api

Many businesses use Optical Character Recognition (OCR) solutions for their financial and administrative processes. The technology can convert text images from scanned/photographed documents into characters, using a process called dematerialization.

OCR can help automate invoice processing by aiding data extraction. Without this technology, digitalization is limited, because it still requires manual effort, therefore higher resource costs. I.e. accounts payable could send a digital invoice via email to approvers, but processing would still require manual data entry. OCR solved this problem. While OCR invoice processing has transformed the AP workflow and digitized invoice processing, OCR on its own has limitations. 

Why OCR Isn’t Enough 

Retrieving data from an invoice is one thing, placing data into the correct fields within an accounts payable system is another, especially when payees and vendors use different formats and software. OCR can extract data but it won’t intuitively know what it means. You need a system that can dependably transfer the data from the invoice to the software system with no oversight.

To resolve that, companies may try to use an OCR provider with high recognition success rates. The truth, however, is that no provider is good enough on its own – the confidence scores come back too low to rely on them for even a semi-automated flow. The only way to solve this is to combine the power of multiple OCR solutions and use them on top of each other to improve the confidence score.

That is exactly what Monite did – we combine many OCR engines in one API. When an invoice comes in, we first use one engine to recognize and post-process data and assess the confidence score.  If the score comes back too low, we use other engines one after another until we get to a high confidence score. Through machine learning, we achieve near 100% accuracy.

What is a document confidence score?
The document confidence score reflects the probability that the key invoice fields – e.g. numbers, addresses, amount due – were correctly captured.

What is a document confidence score?
The document confidence score reflects the probability that the key invoice fields – e.g. numbers, addresses, amount due – were correctly captured.

To maximize recognition quality, we also use machine learning-based preprocessing – documents are cleaned up and brightened to remove unnecessary artifacts from the get-go. We also offer an extension with the ‘human check’ for complex cases. If the confidence score is low after all the engines, the invoice can be automatically sent for a manual review.

Monite’s solution automates many tasks that previously required manual processing, including transferring invoice information for payment processing, matching general ledger codes, or sending the invoice to the correct approver. 

Monite for Invoice OCR API

Building multiple OCR integrations and other elements in-house is costly and time-consuming. That is why Monite created one API through which you can get the full functionality and value you need without spending a lot of time on development. 

Learn more about our OCR API offering.
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Four reasons buying an embedded finance solution could be a huge win for your business

June 22, 2022

If you are a B2B business such as a neobank or marketplace, or build vertical-focused software solutions, today you have a massive opportunity to add financial automations to your core offering. Automations such as invoicing, accounts payable, expense management, and more help drive faster growth, build stickier customer relationships, and generate more revenue.  

However, a critical decision you will need to make is whether to buy an existing solution or build something in-house. On the one hand, eager and talented tech teams may enjoy the challenge of solving some of these problems for your customers. But reality can be more complex than it appears. In this post, we will discuss the advantages of partnering with a specialist embedded finance solution, and share some context on challenges that come from building financial automations in-house.

1. Buying helps you avoid the 20% of complexity that is visible, and 80% that’s hidden

To start with, let’s take a look at the example of an invoicing automation tool. As invoices are standardized documents similar across most countries, it may appear to make sense to build it in-house. 

However, a point that is not alway well understood is that finance automations contain an incredible amount of edge cases and hidden complexity. For example, in the case of invoices each country has its own compulsory information, custom formats and industry and/or country-specific layout requirements. Likewise, country-specific tax and/or regulatory information needs to be added.

The implication for invoices is that different tax and/or regulatory information needs to be added for every country, often in a specific place or in a certain order on the invoice. Your solution needs to recognize payments, partial payments, payment amounts that vary due to exchange rates, payment methods including cash or check, and so on. As you expand, your team will need to consider how to handle different currencies and currency exchange rates, new writing systems such as Cyrillic, Arabic, or Chinese, and different formats such as pdfs or printed forms. There are an enormous amount of edge cases which will need to be solved for your invoicing solution to work reliably all the time, and even in the markets for which you have already built your solution, any change in regulations means more work for your team. And finally, it will need to be able to run accounting for all of this complexity. 

The key thing to remember is that a large number of edge cases means building any financial automation is going to be much more complex than it may initially seem. In fact, according to our research, 80% of the complexity of any finance automation is invisible, meaning teams regularly under-estimate the resources they need by several orders of magnitude. Due to this, there is a big advantage in outsourcing this complexity to an embedded finance specialist.

2. Buying enables you to focus on your core business

Financial automations involve other people’s money, and that means understanding and being compliant with regulations, and ensuring your automation is highly reliable.

To meet these requirements, you need a complete team – product, compliance, and security, as well as developers. And you need to test features thoroughly before deploying, build in-house expertise around regulatory compliance, and so on. 

In a competitive hiring market, this is a daunting, expensive task and that will act as a drag and distraction from focusing on what your business really excels at. Would you really hire a whole 2-3 squads for this when you need to ramp up core products as well?

But on a more positive note, the flipside is also true. If you buy rather than build, you can devote your valuable talent and resources to your core business, and accelerate on building your own unique advantages. On a 3-5 year time horizon, this can snowball into an enormous competitive advantage for your business as you are able to innovate faster, with lower overheads.

3. Buying enables you to unlock multiple revenue opportunities

The purchase and implementation cycle of a good embedded finance solution is typically much shorter than what it would take to build and ship a comparable financial automation in house – depending on how organized you are, as fast as a few weeks. And because embedded finance solutions are built by entire teams to cover use and edge cases of many clients, the functionality of a bought solution is also much richer than a comparable in-house solution. This has a number of catalysts for revenue growth, and means you can: 

To summarize, the revenue opportunities of buying a solution can be far greater than simply a recurring fee for a new feature, and should not be underestimated. 

4. Buying means you benefit from network effects

To briefly recap what a network effect is, it refers to the concept that an increased number of customers improves the value of a service. 

In the case of your embedded finance partner, this means that every customer they add translates into more capital for them to build out new features, products, and integrations that benefit their entire customer base, including your business. 

If you buy a solution today, you will already benefit from network effects. The fact that they have a team of engineers focused on building out features, product, and integrations for all their customers means that functionality and edge cases will be far better covered than anything you build in house. But not only will you benefit from the network effect of today, you are also going to benefit from every new customer who comes after you, who will in turn enable long term, accelerated innovation by your embedded finance partner.

Embedded finance is at an inflection point

Finally, perhaps the most exciting part of this story is where embedded finance is in terms of the vendor landscape. For this, we can look at an analogy with payments innovation. 

A decade ago many tech teams would have built their own payments connections rather than risk outsourcing this business-critical function to a third party. After all, why would you trust this incredibly important function to a company you have no control over?

But over the last decade there has been an explosion in both the number and quality of payments APIs on the market. Today, it would be crazy to think that your in-house team could build payments connections that could compete with the reliability and functionality built by thousands of engineers and product experts at companies like Stripe, Mollie, or Adyen. 

Embedded finance is at a similar inflection point to payments a decade ago. Companies such as Monite are accelerating innovation and building scalable products that will help a wide range of B2B tech and financial businesses to unlock new revenue streams, deliver a better customer experience, and double down on their own innovations. A decade ago small, relatively unknown companies such as Uber, Shopify, and Etsy, partnered with the first wave of payments APIs on their way to building groundbreaking companies. And today, innovative companies – both new and established – will do the same with embedded finance APIs. Will you be among them?

To find out more about how your business could benefit from embedded finance

What Is Invoicing API? Guide To Invoicing API For Anyone

September 23, 2021

What is Invoicing API?

In the post-pandemic era, API e invoice has got mandated by governments around the globe. It has got initiated for small-scale companies with a whopping turnover. A comprehensive e-invoicing API implementation ensures:
· Reduced fraud and tax leakage
· It saves money and time
· Reaps the benefits of e invoice API to taxpayers like precise and easy claims, and reduced invoice matches, to mention a few
· Enhanced transparency and reduced human error; and more

Outlining the Importance of Accounting API

In the accounting domain, APIs enable clientele to treat accounting software as the prime hub. In addition, it allows using it to unleash the accounts data effectively and increase the efficacy of fundamental business processes. It integrates with accounts to improve credit control. What it does is, automate the procedure of chasing customers for displaying payments and credit risks.

By connecting to the account automatically, APIs understand which invoices have got paid and which are not. Considering API in accounting, it turns the accounting software into an equipped toolkit. So, this means that there’s always one application that may benefit each client. Kudos to the influence of cloud-accounting APIs! Now, you get reviewed as a trusted business advisor to small businesses.

How Does Bill Payment API Work

In general, there are two types of payment method identifiers for bill API online:
· URL-based payment methods: It represents one payment method tied with a single payment app
· Standardized payment processes: It’s the most used string for the payment method identifier

The payment method concept in the payment request API is simple. However, it’s imperative first to understand a larger architecture.

How Connectivity via Bookkeeping API Empowers Accounting?

API for e invoicing is crucial for 21st-century cloud accounting as the software used throughout the business requires accounting solutions. From managing projects to generating orders, each business area comprises a financial dimension. The tools also require transferring transaction data to the accounting system for effective financial management. So, this means decent accounting relies on consistent IT connections.

Without robust API, the connections get delayed or may break, resulting in data errors. It may require resorting to manually validating the accounting information. Using accounting tools with strong API allows for streamlining the life cycle from beginning till the end.

Why Should You Use Accounting Software API?

There’s a multitude of reasons why businesses must consider launching accounting software APIs. They offer the potential to:
· Generate revenue
· Extend the value and reach of customers
· Support marketing activities and sales
· Stimulate technical innovation and business
· Ease integration of applications and backend data

Understanding the Role of Invoice Generator API

The Invoice Generator API provides a PDF conversion system integrated with the existing applications. The Invoices API allows you to create invoice API and manage them for orders created by using the Orders API. Upon creating the invoice and configuring the delivery method, invoice settings, and payment schedule, you may publish that invoice.

What is API Banking? Guide to API Banking for anyone

September 22, 2021

API banking is a unique, advanced, and innovative way to improve communication between the clientele server and the bank. It makes use of JSON/XML codes and makes data transfer seamless between the two systems. Here’s your guide to everything about API banking. But what is API Banking?

What is API Banking?

By API banking definition, Application Programming Interface uses XML/JSON codes for enhancing communication between client servers and the bank. By doing so, it makes data transfer between the systems smooth and ensures secured integration between the bank’s and customer’s systems. API Banking helps customers perform banking transactions easily without toggling the ERP or Enterprise Resource Planning platform and the bank.

Outlining the Benefits of Bank API
There are multiple benefits of API banking, and to mention some of them, you can follow the following pointers:
– Instant solution and direct integration – Real-time solution to process banking transaction
– Secured and seamless medium of integration – Exchange files or data in the encrypted environment
– Extremely efficient banking mode – Reduces the turn-around time concerning banking transaction as initiation and reverse status on the customer system based on real-time
– Easy reconciliation and Saves time – You no longer require visiting the bank or manually uploading the transaction files

Bank of Canada Exchange Rates API
To broaden the concept of exchange rates API; here’s highlighting the pointers:
· Daily Exchange Rates
· Monthly Exchange Rates
· Annual Exchange Rates
· Daily Exchange Rates Lookup
· Canadian Exchange Rates (the CEER index happens to be the weighted average of bilateral exchange rates for Canadian dollars against currencies of Canada’s trading partners)
· Foreign Exchange Intervention (updated when the bank intervenes in the foreign exchange market)

About exchange rates

To do so here’s highlighting two significant processes:

1. Understanding the exchange rates
Talking about the foreign exchange market, it determines how much the Canadian dollar is actually worth. If you consider the Canadian Bank, one must intervene to support the value accordingly.

2. Background information on exchange rates
As per the API banking firmenkunden, it is imperative to first consider learning about publication and calculation methodologies for the FX or foreign exchange rate data on the Canadian bank’s website.

Deconstructing API Bank Models

API banking models get classified broadly into three classes, including:
– Platform banking or API banking platform
– Banking as a service, and
– API Open banking

Types of Bank Login API

The banking industry is emerging to the open-source model through APIs. As per the report, there are three ways of logging in API through the following banking APIs:

1. Private API
The APIs get commonly used within a traditional banking institution for the purpose of augmenting the efficacy of operations. The set of APIs gets viewed as essential by the banks due to the fact that they significantly reduce development time for building new systems or customer-facing applications.
In return, what it does is, maximize productivity. Instead of creating apps from scratch, what developers can do is, draw from the common pool of private APIs.

2. Open API
The set of open APIs has become famous in the 21st-century banking hub. With the API in banking industry getting prominent, the APIs avail the data for the third parties that might not enhance the formal relationship with the banks. The open banking initiative ads improve the whole digital banking solutions.

3. Partner API
According to API banking Deutsche bank, APIs get used as the interface between banks and their business partners. In return, it helps the banks to expand product lines and services, to mention a few. Does it sound confusing? Well, here’s to learning further on this front.

Any bank may work with a third-party company to create the loan documents automatically. This gets done for numerous loan app that banks receive. By working in this manner, banks will be able to work together with the partners to troubleshoot the common problem by sharing APIs accordingly. This may increase the efficiency of the bank and allow for the automation of loans.

Classification of Bank APIs by Functionalizes

These get divided into different categories such as:
Core API in banking: It encompasses APIs used for savings accounts for cash deposits. APIs help with cross-border payments.

Card Issuance APIs: With the most effective API banking strategy, they allow creating, managing, and distributing the physical and virtual cards. These get used for creating the cards for the businesses.

KYC APIs: As per API banking use cases, this set helps in identifying the retail customer or business. It helps in reducing onboarding time for customers, ensuring seamlessness.

Lending APIs: APIs help in offering credit to the customers. They offer information that loan officers need for making effective lending decisions.
Acquiring APIs: This particular set of APIs encompass payment gateway APIs as well as online card acquiring APIs! Online card acquiring APIs enable the companies to accept any kind of payment with the cards or even internet banking!

The emergence of API Banking

As per the API banking wiki, the historical roots of the evolution of API banking have its roots in 2016 when CMA or Competition and Markets Authority asked different top-notch banks to offer access to the data to the third-party apps. The decision came as a result of multiple small steps taken to open banking.

After some time, PSD2 emerged at the forefront and made a prominent contribution to the evolution of Open banking. With that, UPI or Unified Payments Interface played a prevalent role in the emergence of API banking. The procedure of sharing data through the bank APIs get demonstrated as API banking.

Adoption of API Banking Definition

With the adoption of API banking, it has fueled the development of newer entrants. Additionally, API banking also brought changes to the way fintech organizations and banks work.

So, this was your guide to everything about API banking. Now that you have learned the nitty-gritty of API banking, you can hire the most effective API banking services and proceed seamlessly.

Accounts Payable Automation in Small Business

September 12, 2021

Managing cash flow is critical to small business success. That includes monitoring accounts payable for the products and services your company needs to grow your operations.
Even with electronic accounting and financial software, small businesses spend a lot of time manually managing every invoice one by one. It’s a necessary task, but also one that’s susceptible to errors, missed details and lost time.
What is accounts payable, and how can your small business make it easier to track?

Accounts payable: What is it?
When a small business purchases equipment, services, or supplies from an outside vendor, they usually do so on credit. The total amount this business owes is called accounts payable. Bookkeeping records show accounts payable under “current liabilities.”

The accounts payable process
At most small businesses, the accounts payable process generally consists of three steps:
· The company issues a purchase order
· The vendor provides goods or services, generating a receiving receipt by the company
· The vendor issues an invoice outlining how much is owed and when payment is due
After invoice details have been reviewed and approved by the employee and the financial department, the amount is entered as accounts payable. Usually, the vendor gives the company a window of time — typically 30 or 60 days, or more — to remit payment.

Problems with handling accounts payable manually
The accounts payable process generates a lot of paperwork, whether it’s actual paper or digital. Even if purchase orders and invoicing are done electronically, handling them manually can result in a lot of gaps in the process.
Everyone in the business who buys an item or service must send their invoices to the officer in charge of accounts payable, meaning that the officer must sift through piles of emails to collect them all. The CFO then has to download each invoice manually, pay it before the due date, and prepare all the information for accounting.
The chances for error in this process are significant. Invoices can get lost in the email shuffle. Information can be recorded incorrectly or missed entirely. Paying invoices at several different times can make record-keeping hard to manage. The time spent in creating reports can add up to the point where the lengthy process becomes a liability in itself.
That’s why accounts payable automation is the 21st-century method of invoice management.

Monite: The Accounts Payable Process Made Simple
Monite is an end-to-end, automated answer for accounts payable processing. As part of its fully automated financial platform, Monite makes it easy to submit, review, approve and pay invoices in half the time.

Submit Invoices
Office team members send their invoices to the Monite platform. No matter what different formats they take — even if they’re scans of paper invoices — Monite accepts them all. Users can annotate their invoices with additional information.

Auto-Prep Payments
Monite uses OCR technology to extract all the pertinent information on each invoice. It automatically organises all data and puts it in a clear, easy-to-understand report.

Send Regular Reports to Financial Officer
You or your company’s CFO receives a single report covering all the most recent reports, as little as once a week. They can review and approve all invoices in one sitting or return individual invoices for clarification.

Remit Payment
With just one click, you can issue payments on all invoices automatically through your bank. Confirmation of payment is immediately sent to the employee who submitted the invoice.

Benefits of Accounts Payable Bookkeeping with Monite

Centralized Overview of All Activity
Monite gives you a complete look at your small business’s accounts payable activity in a clear, organised way.

No Lost Invoices
Monite’s automated system ensures that no invoice will slip through the cracks or get buried beneath a mountain of emails.

Verified Payments
Your employees won’t have to bother you about payment because they’ll get a notification every time their open invoices are paid.

Time Savings
Most importantly, Monite automates all the organisational and clerical tasks that take up time that could be spent growing your business.