Transaction Services Model
Turning Vendor Payments into Revenue. Many businesses overlook a significant opportunity to generate revenue by leveraging the connections they trade with. Crypto payments can offer additional revenue streams, potentially providing greater cost savings, efficiency, and flexibility for forward-thinking businesses.
The Corporate Card
When businesses use corporate cards instead of traditional payment methods (checks, ACH, wire transfers) for vendor payments, they can transform their spending into a revenue source through:
Transaction-Based Revenue
- Companies can earn rebates, cashback, or rewards on card transactions
- Commercial cards deliver a net positive economic impact of 420 basis points (bps) per transaction over alternatives
- A composite organization with $10B turnover achieved 24% revenue gains over three years through card acceptance
Working Capital Optimization
- Businesses maintain their Days Payable Outstanding (DPO) while vendors benefit from faster payments
- Cards significantly reduce vendors' Days Sales Outstanding (DSO) from 45 days to 15 days
- Vendors see 20% improvement in debt collection rates
Process Efficiencies
- Faster, more cost-efficient account setup compared to ACH or check payments
- Time savings through automated reconciliation processes
- Reduced fraud-related administrative burden
Crypto Rails
How Crypto Payments Can Compete: Cryptocurrencies and blockchain technology offer a compelling alternative to the corporate card model with several key advantages:
Lower Transaction Costs
- Crypto payments often have significantly lower fees than traditional methods by eliminating intermediaries
- No hidden processing fees that scale with transaction size or speed
- Companies can preserve more of their payment value without the interchange fees of card networks
Speed and Efficiency
- Near-instant settlement times (seconds vs. days)
- 24/7 availability without banking hour restrictions
- Global accessibility without currency conversion complications
Enhanced Security and Transparency
- Blockchain provides immutable transaction records for audit-ready security
- Built-in vendor wallet verification ensures payment security
- Reduced fraud risk through cryptographic verification
Integration Capabilities
- Modern crypto payment solutions like Bitwave integrate with ERP systems (NetSuite, QuickBooks, etc.)
- Stablecoin payments can seamlessly integrate with AP/AR systems
- Batch payment capabilities allow processing multiple invoices across different tokens and blockchains
Programmability
- Engineer your own stablecoin
- Smart contracts enable automated, condition-based payments
- Companies can create customized payment workflows not possible with traditional cards
Crypto Payment Ecosystem
The crypto payment landscape is evolving rapidly, with solutions like:
- The Bitwave Payment Network connecting businesses, vendors, and technology partners
- Enterprise solutions offering secure vendor onboarding, non-custodial control, and regulatory compliance
- Stablecoins providing price stability while maintaining crypto's technical advantages
Major companies including Microsoft, MasterCard, and Starbucks are already embracing cryptocurrencies for payments, indicating growing mainstream acceptance.
Strategic Considerations
When evaluating crypto payment options against corporate cards, businesses should consider:
- Market volatility concerns (mitigated through stablecoins)
- Regulatory uncertainties that continue to evolve
- Implementation complexity and integration requirements
- Vendor acceptance and onboarding processes
Links
- Brex
- JP Morgan
- Stripe, Earn Revenue by Issuing Cards
- [Stripe, Transaction Processing Guide] https://stripe.com/nz/resources/more/how-credit-card-transaction-processing-works-a-quick-guide
- Oracle Card Payment
- B2B Payments