Codat and JP Morgan partner to promote adoption of virtual card

By Gloria Methri

London-based business data API provider Codat has launched its new Supplier Enablement data product. This product enables businesses to share their spending and supplier data from ERP (enterprise resource planning) systems and accounting software. Card issuers can access the right data in their preferred format to recruit suppliers to accept virtual card payments instead of checks on an ongoing basis.

With the growth of virtual cards as a payment method for business-to-business (B2B) transactions projected to reach $13.8 trillion by 2028, as per a Juniper Research study, many issuers are seeking solutions to seize this opportunity and drive greater benefits for their clients.

Now in production with J.P. Morgan, commercial clients can establish and scale programs for paying their suppliers with virtual cards by connecting to comprehensive and up-to-date supplier and spend data.

The solution replaces static supplier payment files with secure and persistent API connections, providing the bank with more robust data sets and complete analysis. This should ultimately drive increased spend per connected client through its virtual card offering. The solution provides a more efficient process for both the bank and the client.

Peter Lord, CEO at Codat, said, “With the rapidly growing adoption of virtual cards for B2B payments, we felt the time was right to release a new data product specifically designed to transform supplier enablement and accelerate how the value of payments innovation is realized in the market. Codat’s ongoing collaboration with J.P. Morgan has been hugely valuable in helping us develop products that maximize the value of data sharing for financial institutions and their business clients.”

Stephen Markwell, Head of Product Strategy and FinTech Partnerships for Commercial Banking at J.P. Morgan added, “Thanks to our work with Codat, our clients can easily and digitally deliver critical supplier enablement data to our firm, helping to realize efficiency gains and cost savings sooner and across a greater share of their spend.”