A French business called Upflow, which was before only concerned with handling unpaid invoices, has declared a strategic change to become a full-service B2B payment platform. This transformation will introduce its own payment gateway, enhancing its existing accounts receivable automation solution.
Addressing Outdated Payment Methods
Co-founder and CEO Alexandre Louisy highlighted the persistent challenges in B2B payment processes. “When you look at B2B payments, the way you pay today hasn’t changed in the last 50 years,” he explained. While consumer payments have evolved to be seamless—often executed via mobile devices or online subscriptions—many businesses still rely on outdated methods such as paper checks. In the U.S., it’s estimated that around 90% of B2B payments occur offline, with Europe seeing more reliance on bank transfers, which often involve cumbersome manual reconciliation.
A New Approach to Payments
Upflow aims to facilitate a shift in payment methods for its clients. The company’s software is designed to help CFOs implement strategies that encourage a portion of their customer base to adopt more efficient online payment options, such as credit cards or direct debits. Louisy noted, “The idea isn’t that all your clients are going to pay with a business card overnight, but we can help you change the payment method for about 20% or 30% of your client base.”
Transitioning to a Hybrid Revenue Model
With this strategic shift, Upflow is moving from a model solely reliant on SaaS revenue to a hybrid approach that includes both SaaS and payment revenues, facilitated by a partnership with Stripe for its new payment gateway. This expansion into payments represents the second major component of Upflow’s evolving product suite.
Future Plans: Financing Options
Looking ahead, Upflow plans to integrate financing solutions, such as B2B “buy now, pay later” options for suppliers and invoice factoring. Louisy emphasized that while assessing risk isn’t their core business, Upflow can leverage its data to provide valuable insights for credit scoring, enhancing the financial ecosystem for its users.
As Upflow continues to innovate, it positions itself as a vital player in the evolving landscape of B2B payments, aiming to simplify financial transactions and improve cash flow management for midsized companies.
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