Reports in IT Wire on Monday (Oct. 7) said Visa and Payment Logic are launching Yak Pay, a new company that connects small businesses with a supplier payment solution. The tool is designed to enable SMBs to pay their vendors with commercial cards, even if that vendor does not accept them.
Yak Pay is owned by Payment Logic, reports explained, with Visa providing product design and go-to-market strategy expertise.
The solution supports integration into businesses’ existing accounting and bookkeeping platforms and will make use of Visa’s existing global network and security capabilities. Yak Pay will also support automated reconciliation via its integration with small business accounting solution Xero, the firms said.
“Paying bills on time, maintaining good relationships with suppliers and ensuring strong credit ratings are essential for small business survival,” said Yak Pay CEO Sam Plowman. “In launching Yak Pay, our intention is to help relieve these pressures for small business owners, enabling them to focus on growth.”
Visa Head of Merchant Sales and Acquiring for Australia, New Zealand and South Pacific, Dan Parsons, said the struggle for small businesses to adopt digital accounts payable payment methods can often be traced back to the ongoing reliance of cash and lack of digital payment acceptance among vendors.
“This can be stressful and time-consuming for the owners and managers of these businesses, and we know that many prefer the security, convenience and record-keeping capabilities offered by credit and debit products,” he said. “We’re thrilled to partner with an Australian FinTech to provide a solution for other small business owners. It’s a great story of Australian startups enabling one another’s growth.”