Embedded Finance, Member Exclusive

Embedded Briefing: TreviPay acquires Apruve to expand B2B payments offering

  • B2B payments solutions provider TreviPay acquired Apruve to expand its product offerings and reach new geographies.
  • TreviPay's current offerings include technologies enabling the order-to-cash flow, and specialized payment networks for businesses of all sizes.

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Embedded Briefing: TreviPay acquires Apruve to expand B2B payments offering

If you’ve been reading my briefings lately, you’ve probably gathered that I see two trends dominating the embedded finance industry in the year to come: B2B payments, and M&As. In my last briefing of 2022, we take a look at TreviPay, a global provider of B2B payments solutions, acquiring Apruve, another global business payments solutions provider.

TreviPay is today an expert in order-to-cash technology in the B2B payments space. In addition to that, the firm helps businesses with global invoicing, trade credit, organizing receivables, and risk management.

Furthermore, the firm has built payment networks, private and public, which help connect sellers with buyers, whether they’re giant enterprises or SMBs.

That’s a lucrative space to be in right now – TreviPay reports 30% organic growth in its business in 2022. This is because while B2C flows had been undergoing digitization all through the pandemic and beyond, B2B flows had remained largely untouched. Merchants are finally re-evaluating business models to determine how to best digitize processes for the business buyer.

“While digital transformation has been accelerated by the pandemic, most company resources and attention have been on improving the online customer buying journey for the B2C buyer. But as an industry, attention is now focusing on how money flows in the B2B ecosystem,” Brandon Spear, CEO of TreviPay, told Tearsheet.

According to Spear, the future of B2B payments is an easier pathway for all suppliers. It is enabling them to be able to sell to a variety of customers across geographies. That view shapes the business’ growth direction. 

And that’s also where TreviPay’s acquisition of Apruve comes in. Minnesota-based Apruve helps sellers bypass the need to maintain accounts receivables by extending payment terms to buyers on their behalf. These grant sellers early access to revenue, while providing buyers with trade financing – hence combining A/R automation and next-day financing.

The acquisition enables TreviPay to grow its geographic footprint while adding valuable automation for both buyers and sellers, and hence creating the ‘B2B payment pathways of tomorrow.’

When TreviPay set out to acquire a business, they were most interested in one operating in or around their own space – which is order-to-cash automation resulting in payment and money flow. Beyond that, they looked at three key things: expertise in new verticals, specialty in new markets – or markets where TreviPay could use more depth – and businesses that are making an aggregated volume of payments today. 

They rated Apruve highly across all those factors. Apruve’s complementary suite of payments technology will further the firm’s mission to meet the trade credit needs of the manufacturing industry.

“Apruve has done a good job penetrating the high-tech manufacturing vertical, has established relationships with global banks in APAC (one of the more complicated markets to operate in) and has aggregate payment volume,” Spear commented on why the firm made an attractive acquisition. 

2022 was a big year all around for the company. Prior to this, TreviPay announced acquiring Baton Financial Services, a B2B invoicing solution. Additionally, they launched their Small Business Supplier Network to service smaller buyers and launched the TreviPay Aviation Network.

For 2023, the firm continues to prioritize making B2B payments easier, faster and smarter. Spear argues that in 2023, as B2B merchants continue competing for digital buyers, there will be a stronger need to offer payment solutions that drive revenue and support customer loyalty.

“Payments are a powerful way to create or tap into a trusted buyer-seller network that features strong connections, exclusive payment and invoicing terms, enhanced efficiencies, reduced costs and expanded recurring opportunities. Meeting invoice requirements, offering net terms and agreeing upon spending controls means trade flows freely without costly friction in either A/R or A/P departments,” he said.

Just look at the chart

Source: Flagship Advisory

Payments around the world have undergone multiple phases of evolution. Today, when we talk about technology completely changing how payments are done, we often forget that it’s not the first overhaul for the industry.

Changing times and innovation in technology has ushered multiple phases of such evolution in the industry, and each of these phases has been powered by distinct providers of that age. Looking back to pre-industrial America, we see the prevalence of cash as an instrument to complete transactions, and how the institutions we refer to as ‘traditional banks’ today reigned supreme.

The next phase came in with what we can call the original fintech invention, at least in the sense of the word we have come to understand today – the payment card. Later in the 20th century, we witnessed a boom in the internet economy, and with that, in online payments.

Today, however, as our online lives become increasingly sophisticated, embedded payments are the need of the hour – seamless payment experiences that feel natural to our use of the world wide web. This is, obviously, not an easy task. Successfully and profitably integrating payments into different platforms requires technical expertise like never before.

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