Dynamic discounting for Networked Purchase to Pay – a Basware Story
Tuesday, 17 Feb 2015
One of the great things about working at Basware is the constantly expanding portfolio of products and services which sit within the Basware Network.
Senior Product Marketing Manager
It’s actually a really exciting time for me (and the 1.2 million buyers and suppliers on the network) because we really are seeing the transition from the network as an infrastructure into more of a marketplace. This transition isn’t simply the addition of new products and services to the network, it’s more about how the network participants are looking to the network with regards to value creation.
Where does value come from? The way I see it, value is relative to your starting point. The Basware Network is a wonderful mix of buyers and suppliers (both large and small), public sector organizations from schools to local, state and federal government and various BPO providers of services to SMB and Micro organizations. So, basically, it’s a mosaic of organizations of all stripes and how do you define value for such a diverse audience? Okay, sure, they all have their wants, need, challenges and opportunities but what unites them? Sending invoices, paying invoices, chasing customers for payment, financing, working capital – in a word: CASH.
Yes, without a doubt, cash is king – doesn’t matter if you’re large or small, public or private, getting paid is where it’s at. So that brings me back to this post and why I’m excited today of all days. Well, you may remember that back in 2014, on September 3rd to be precise, we launched Basware Financial Services and Basware Pay (Basware Pay is a global e-payment service provided in combination with MasterCard). Well, on Feb 17th, we will be launching the second service in the portfolio: Basware Discount. I brought up value before and the diverse nature of the denizens within the Basware Network – well Basware Discount aims to have something for everyone. Like Basware Pay, Basware Discount either provides or compliments an organization’s early payment program (FYI: Basware Pay and Basware Discount could work side-by-side servicing different segments of supplier, value and payment). Unlike Basware Pay, Basware Discount does not include financing (as provided by the MasterCard element and the issuer bank involved). Basware Discount is primarily designed to be a straightforward early payment solution that works against a sliding scale. Buyer and Supplier agree on early payment terms including the discount rate and when the invoice is approved, it’s paid (at a discount) according to the applicable rate.
Why should anyone care? Well, if you are already on the Basware Network it’s a no-brainer as Basware Discount is a dead easy service to take into use and leverage. Self-service onboarding of your suppliers is built into the network, works for a variety of services and from what I read, suppliers ARE interested in signing up. Our last major market research (Creating Payment Energy) showed 80% of suppliers were interested in getting paid early in exchange for a discount – they wouldn’t do it if they didn’t see the value now would they?
And if you not part of the Basware Network yet, well, this is just one more reason to consider it - in addition to the vast numbers of buyers and suppliers, the unparalleled e-invoice format conversions, the sheer variety of services enabling e-invoicing and the broad adoption by the public sector all over the world – well, if you needed additional reasons.
So, let me pull it all together (and if you’ve gotten this far, let me congratulate you). The Feb 17th launch of Basware Discount is bringing together Buyers and Suppliers through the happy medium of cash. Buyers have cash and can pay early – suppliers may have cash too but you can rarely get enough when business growth is the goal. So, if cash is king, and cash is ‘value’ then value equals king and by that logic, perhaps we should have called the service Basware King? – okay, maybe not.
Thanks for reading and I’ll see you next time.