Visa and Taulia Collaborate on Embedded Finance as Credit Becomes More Limited

A partnership has been established between Visa and Taulia, a SAP-owned working capital management solutions provider.

In this partnership, which was announced on Tuesday, March 12, SAP’s business applications and enterprise resource planning (ERP) solutions are integrated with Visa’s digital payments technology through Taulia Virtual Cards.

The companies said in a news release that “Virtual payment credentials will work natively across SAP business applications thanks to Visa and Taulia’s partnership, which will simplify payments across the business ecosystem.” “Visa’s APIs will directly embed acceptance and enablement solutions, virtual payment credentials, and SAP business applications through the planned integration.”

According to the release, corporate buyers are streamlining the payment process by allowing users to stay in their business applications or ERP by utilizing embedded virtual cards. According to the companies, their solution will assist teams in charge of accounts payable, procurement, and finance in automating payments to suppliers.

This is “especially helpful for paying one-time suppliers as this eliminates the need to create full master data in the system, a process that can take weeks or even months,” the release said.

The Visa/Taulia collaboration comes after a comparable alliance between Taulia and Mastercard in November of last year. It’s also a result of businesses using virtual and commercial credit cards as part of working capital management strategies to control B2B spending and ensure they have cash on hand for unforeseen costs.

“Even firms in traditional industries like the transportation and logistics sector, where lockboxes and paper checks abound, are revisiting commercial cards as a versatile tool for managing various aspects of their operations and employee spending,” the reporter wrote earlier this week.

The business environment is changing to share credit card transaction costs more fairly, which is accelerating this transition. The report stated that although sellers used to bear the majority of these costs, each party involved in a B2B card transaction is now regularly reevaluating its value proposition.

Meanwhile, the most recent Federal Reserve Beige Book survey indicates that working capital is becoming increasingly scarce for businesses.

“Banking contacts also indicated that credit standards tightened, particularly for business loans and commercial mortgages,” the survey said. “While deposit rates held steady, loan spreads narrowed, and delinquencies continued to rise. Banks and business clients agreed that higher interest rates had lowered demand for loans, while tighter access to credit had lowered the potential supply.”