Buying and marketing group Sugro UK has launched an open banking service to combat rising card transaction fees.
The buying group is partnering with technology solutions provider B2B Store to provide the new payment option to members.
B2B’s technology allows for secure open banking payment links to be sent directly to customers via any form of communication.
Sugro said that it hoped uptake from its membership would be high.
Average credit card interchange fees for wholesalers have increased significantly over the past year, largely due to an increased use of corporate cards.
“Open banking technology has the potential to be a game-changer for wholesalers at a time when they need it most,” said Sugro head of commercial and marketing Yulia Petitt.
“In recent years, the cost of processing payments for credit and debit cards has risen significantly and B2B Open Banking’s competitive pricing structure removes much of that burden by coming in at a much lower percentage.
“Using open banking also helps with a wholesaler’s cashflow because money is paid into a bank account almost immediately compared to the two or three days for card payments to clear.”
B2B Store CEO Rob Mannion said: “We’re delighted to have reached an agreement with Sugro to offer B2B open banking to their members.”
“We see the technology as an important tool for wholesalers as they continue to streamline their businesses and drive cost efficiencies in the current climate.
“By cutting card transaction charges, wholesalers can pass on some of the cost savings to customers in reduced prices too, making for an extra reason for customers to spend with them and spreading the impact across the entire business.”
In December The Grocer reported that 45% of JJ Foodservice were using its new pay by bank feature just four weeks after launch.
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