Business-to-business transactions have been stuck in the past: Experts estimate that a stunning 40% of all B2B payments in the US are still made via check, making it a segment ripe for modernization.
American Express intends to acquire Israeli fintech firm Nipendo as it builds out its platform of tools to make B2B payments simpler and more efficient.
Nipendo’s tools use artificial intelligence to allow businesses to add automation to finding suppliers, making orders, and digitizing and managing invoices (including flagging discrepancies). Businesses will be able to use Amex’s platform to reduce the time and expense of payment processes that were previously paper-based.
Because American Express already has relationships with both buyers and suppliers, it’s well-placed to dominate the space and create a “Venmo of B2B payments within the Amex platform,” an exec told American Banker. The firm has been building its B2B ecosystem through partnerships for some time: In 2019, it acquired acompay, and in 2022, it partnered with accounts receivable players BillTrust and Versapay.
American Express and Nipendo declined to disclose the terms of the deal.