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Daily Tearsheet: Jiga and payments in manufacturing, and any company can embed banking products — but that doesn’t mean they should

  • Jiga is doing embedding payments right, which means finding the right contextual moments to add payments to a workflow.
  • And while every company can embed banking into their business, not every business should — those that deeply integrate banking into their product ecosystem instead of tacking on a feature are more likely to differentiate themselves and make it in the long run.
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Daily Tearsheet: Jiga and payments in manufacturing, and any company can embed banking products — but that doesn’t mean they should

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Jiga embeds payments in manufacturing workflows

In this episode of Tearsheet’s Podcast, Jiga’s co-founder and CEO Adar Hay, joins host Zack Miller, Tearsheet’s Editor-in-Chief. 

There’s a reason B2B payments hasn’t been solved. It’s so complicated – the need for different terms, payment forms, approvals, and workflows makes it damn hard to automate and digitize. So to really get at the heart of B2B payments, you have to first start with the quoting and invoicing process – payments come later. That’s just what Jiga is doing for the manufacturing sector. The SaaS company has zeroed in on improving the work that goes into everything that comes before payments in manufacturing – embedded payments is just the next piece.

Adar talks about the evolution of his early-stage company. From the pandemic-era genesis story, we move on to how the firm’s product supports the different players in the manufacturing value chain through payments. 

Listen / Read more

Any company can embed banking products — but that doesn’t mean they should

By Ahon Sarkar, GM of Helix

Five years ago, a non-bank would have never considered launching a banking account service. But now, with the prevalence of Banking as a Service virtually any company can build a bank account. But should they?

Over the years, we’ve seen companies span the spectrum from resounding failure and dramatic success. What determines the difference?

Embedded banking products improve your business when they solve a specific problem for your users and add a new dimension to your product ecosystem. But when they don’t fit well with your long-term strategy, they strain your business by shifting your focus to include an area where you have no competitive advantage.

While every company can embed banking into their business, not every business should — those that deeply integrate banking into their product ecosystem instead of tacking on a feature are more likely to differentiate themselves and succeed in the long run.

Read more (sponsored by Helix by Q2)

Just look at the charts

1. Use of alternative payments

Source: Hasan Askari

2. The four pillars of open banking play a crucial role in its success

Source: Antonio Grasso

Today’s stories

Upstart’s outlook comes up short, but CEO is ‘confident’ in value of AI lending
Upstart’s shares fell after the company delivered a lower-than-expected revenue forecast for the current quarter, but its chief executive expressed confidence in the performance and value of artificial-intelligence-driven lending. (MarketWatch)

AvidXchange advents AP solution for construction
With companies working to reduce the time they spend on paperwork, solution providers are equipping them with automated platforms that free them from accounts payable (AP) chores. AvidXchange has expanded its range of AP automation software and payment solutions ‘purchase-to-pay’ for midmarket businesses and their suppliers to include a new offering for the construction industry. (PYMNTS)

Fintech with a focus on food stamps raises $22 million
Forage, a 17-person San Francisco fintech startup founded in 2019, is trying to fix this problem with software that helps grocers accept online SNAP payments. The company has raised $22 million in Series A funding led by NYCA Partners. PayPal Ventures, EO Ventures, and angel investors like Instacart founder Apoorva Mehta also invested, valuing Forage at about $100 million. (Forbes)

Fintech industry leaders are cutting costs & presenting opportunities to Wallstreet
There are a lot of mixed signals in the economy: companies are laying off workers and some economists are warning of a recession. All that uncertainty is hanging over fintech firms, whose fortunes are tied to how willing customers are to spend and borrow. In response, industry leaders are cutting costs — companies known for chasing scale are instead advertising to Wall Street investors how they plan to streamline and focus on core businesses. (protocol)

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