Lloyds Bank And Visa Offers STP For Its Corporate Clients

Friday, October 8th, 2021

Lloyds bank has announced it would join forces with Visa to provide clients in Europe with straight through processing (STTP) technology for its corporate charge cards. 

The use of this technology provides a more streamlined approach to paying invoices, while providing buyers and suppliers the same traditional perks of commercial card payments. 

The Benefits

There are a host of benefits for merchants and suppliers alike. Let’s begin by outlining the benefits for merchants:

• Only the slightest change in processes – STP will be another payment option added to your existing invoice control and “invoice approval processes.”
• Prompt payment is ensured by simply requesting the the date of the transaction 
• Working capital is protected up to 59 days Payable Outstanding for all purchases
• Simple reconciliation
• To eliminate foreign exchange fees/charges, it is available in Sterling, Euro, and US Dollar denominations. It also makes certain that transactions made in these currencies are not susceptible to currency fluctuations. 

Suppliers can also take advantage of the benefits of STP, these include:

• Suppliers can improve their cash flow by receiving earlier settlements. There is no handling of sensitive card information. Once enrolled in STP, there is no process change or additional technology required. 
• Since payment details are released by email, suppliers are able to keep track and reconcile their invoices. 
• To enrol for STP, they will be required to have a merchant account with their card acquirer.

The bank, in an emailed news release, said:

“With STP, buyers can request to time their payments to maximize the number of days before their statement, giving them more flexibility with their cashflow than would be the case with a bank transfer. Suppliers benefit by receiving funds directly into their accounts without the need to manually input card details or use card terminals.”

Helen Jones, Executive Director of Visa Business Solutions at Visa, added:

“Commercial cards are a secure, reliable and convenient way for businesses to pay. STP will help make the experience of paying invoices easier and more streamlined for both suppliers and buyers. We’re delighted to partner with Lloyds Bank to help their customers better manage their cashflow and their supplier relationships at such a critical moment for UK businesses.”

The Latest In Payment Innovations

Lloyds bank has launched this partnership in an effort to ramp up its payment innovation series in order to support its corporate clients. In 2020, the bank launched Swift gpi Instant which links the high-speed Swift gpi cross-border payments rail to real-time domestic infrastructure. This would involve the UK’s Faster Payments System. 

In the year prior, Lloyds released its payables application programming interface (API), which enables businesses to send payments faster and more directly without the need for human intervention. It currently processes well over £350 million ($487 million) of payments every month. 

In order to elevate its visibility within the investment and retirement sector, Lloyds acquired the Embark Group for £390 million ($542 million). The agreement involves Lloyds obtaining about £35 billion ($48.6 billion) in managed assets held by over 400,000 customers of Embark. This will be finalized in the fourth quarter of 2021, upon regulatory approval. 

Looking Ahead

Lloyds Bank has become the first bank in all of Europe to join forces with Visa to provide Straight Through Processing (STP) technology for clients using their commercial credit cards. It leads the way in offering a better means to pay invoices, while still providing the standard benefits of commercial card payments for the buyer and the supplier. 

Using STP will only expand Lloyd’s capabilities for its commercial clients through the automation of supplier card acceptance procedures along with more working capital benefits.