EVO Payments Inc. has come a long way since entering the B2B payments market two years ago, executives said yesterday.
In the United States, the global payments company’s growth “continues to be driven by our ISV and B2B business units, which together grew 21% in the third quarter,” Brendan Tansill, president, Americas, said on a conference call with stock analysts. EVO’s ISV market is comprised of sales to independent software vendors; its B2B market includes sales to manufacturers, distributors and wholesalers.
The company provides multiple forms of payment technology and services, with a strong focus in recent years on supporting B2B payments through “virtual terminals,” or web-based systems for processing payment card transactions through a third-party processor, and through direct integrations with corporate ERP systems that automatically update payment transactions in companies’ accounting software applications and eliminate the need for manual data entry.
Building a presence in B2B
EVO initially entered the B2B payments market with its September 2017 acquisition of Sterling Payment Technologies, which focuses on providing web-based virtual terminals. When companies accepts payments through its virtual terminals, Sterling provides the hardware and software and handles compliance with security standards.
Since then, EVO has also been building integrations with major enterprise resource planning, or ERP, systems, providing for the automated updated of financial records in accounting software. In September 2019, EVO acquired Kitchener, Ontario-based Delego, which specializes in integrating B2B payment transactions with the ERP software of SAP SE, for C$42.6 million (US$32.4 million at the time of the transaction).
In April, Delego launched Delego PayCenter, which is a cloud-based self-service electronic invoice presentment and payment (EIPP) system that updates invoice and payment records in SAP’s ERP software. Designed for large companies that sell to customers across multiple channels, the PayCenter EIPP system allows a client company’s customers to access a self-service web portal to view and pay their invoices with immediate updates of financial records, Delego says.
“We believe Delego, in addition to our notice and Sterling acquisitions, has positioned our continued success in the under-penetrated and fast-growing B2B space,” EVO CEO Jim Kelly said on the conference call with stock analysts, according to a transcript of the call from investment research firm Motley Fool.
Connecting with multiple ERP systems
EVO now also offers payment integration with ERP systems from Microsoft Corp. and Oracle Corp., “enabling us to deliver end-to-end integrated ERP solutions for our merchants,” Kelly said. Noting that he expects the “addressable global B2B marketing opportunity to be $19 trillion, he added: “We remain very excited about the long-term growth prospects for this channel.”
EVO’s B2B customers, Kelly said, “are primarily large national and multinational companies that generate between 10 [million] and 500 million dollars in annual volume including manufacturers, distributors and wholesalers.”
EVO says its provides payment card-based processing services to small and middle-market merchants, multinational corporations, government agencies and other business and nonprofit enterprises located throughout North America and Europe—totaling more than 550,000 sellers across 50 markets.
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