Open banking boosts wholesaler security
Open banking is proving to have additional security benefits for wholesalers, says Sugro after it introduced the payment solution to its membership
Some Sugro wholesalers have introduced the payment service into their operations to cut down on card transaction charges and in doing so, have reported a decrease in the quantity of cash being used to settle invoices, therefore creating safer conditions for employees in depots and on the road.
B2B Open Banking allows wholesalers to accept payment by bank transfer which costs less than credit card and debit card transactions.
Sugro’s Head of Commercial & Marketing, Yulia Petitt, said: “We always knew that B2B Open Banking would have a positive effect on the finances of our wholesale members, but to see other benefits shining through so strongly already is brilliant.”
“Crime against wholesalers is an ongoing concern for the entire sector and we’re always looking at ways to tackle the security issues the nature of the operations carried out attracts. Cutting down the amount of cash flowing between wholesalers and their customers is a key part of that, with the only remedy to find an alternative payment solution that retailers will use instead.”
One Sugro member, R&I Jones, has decided to stop taking cash for deliveries since introducing open banking. Drivers would regularly take up to £2,000 in cash on a normal delivery run and while employees never encountered any direct threats, switching to open banking has removed the risk.
“When people have used open banking once and see how easy it is to use, they continue to use it,” said Aled Roberts, Director. “We’re taking less cash and have said to our customers that used to give us money upon delivery that we’re no longer going to take that, which is a lot safer for our drivers and much better for insurance purposes.”
“With costs rising elsewhere, we expect open banking to become more prevalent inside and outside the sector in the coming months and years, and any additional benefits – such as improving wholesaler security – is only going to accelerate that,” agreed b2b.store CEO Rob Mannion.
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