How DiviPay is helping small business manage staff expenditure

- By Collaborative Media & Publishing
The coronavirus pandemic has changed the future of work.

Employees now have greater autonomy following multiple lockdowns, yet many small businesses still struggle to maintain staff expenditure controls, whether helping them to pay for equipment to work from home or just everyday business costs.

Virtual corporate card and expense management platform DiviPay, which was launched in 2017, is helping solve the issue.

"The way our product works is we essentially allow you to build your expense policy into the actual payment itself," says DiviPay Founder and CEO Daniel Kniaz.

The FinTech business, which recently added BPAY as a billing option, now serves more than 1000 customers including graphic design company Canva, law firm Slater & Gordon and jeweller Michael Hill.

Employee trust and accountability

While some business sectors continue to struggle in the wake of the pandemic (tourism, gyms), many others are booming (financial services, online shopping). A war for talent is underway with overall unemployment tracking at just 4.6 per cent.

Winning employee trust is crucial, yet staff at small to medium enterprises often struggle to set up corporate credit cards, leaving staff to pay company expenses on their own personal cards.

"Staff would use their own money to pay for business expenses and then be reimbursed or you'd have these scenarios where one or two people within the business had a corporate card and then would share a photocopy of it around the office," Kniaz says.

"Both of those workarounds created a number of inefficiencies, such as potential fraud and wasteful spending or just requiring employees to spend their own funds."
Actions SMBs (SMEs) have taken to earn employee trust. Source: 5th Edition Small and Medium Business Trends Report. (2022, February 11). 

DiviPay allows SMEs to authorise virtual card payments to certain people, which can be limited by transaction sizes, or even to particular merchants.

It means SMEs can avoid applying a complex employee expenditure policy after transactions have been made. Transactions are also then automatically reconciled in popular accounting packages such as Xero, MYOB and Quickbooks.

APIs make adding BPAY simple in response to customer demand

DiviPay has built a large range of integrations with other software to streamline small business activities.

"The way that we have architected our product, it's essentially a big API. It allows us to connect in a very modular way into a whole range of different systems and we did that intentionally knowing that we wanted to connect into as many tools that our customers use."

Late last year, DiviPay added a new integration with Slyp’s Smart Receipt technology allowing receipts to be digitally sent straight to a business' accounting package. It also added BPAY's popular billing service around the same time.

Kniaz says it decided to add BPAY as a bill payment option based on customer demand.

"For some customers, it's how they prefer to pay – the reference number allows for slightly easier reconciliation, while some suppliers only allow for BPAY transactions," Kniaz says. "Because our goal is for every expense to flow through the DiviPay platform, we need to make sure that we provide customers with that option."

The integration relied on BPAY Group's suite of Developer APIs, which make connecting to the service a simple process, and went live in December 2021.

"FinTechs are now getting access to technology through APIs that used to only be available to the big banks, and that allows us to move really quickly and then innovate on top of those payment utilities. BPAY's APIs were painless and relatively quick to integrate into our system."

While BPAY was launched more than 20 years ago, its API suite is opening the service up to new generation of companies.

More than 80 businesses have used them to connect with the billing service, including startups such as buy-now-pay-later bill platform Deferit and pay sharing platform Groupee. They have also lowered costs and made it easier for established companies to connect, including investment platform Netwealth and Virgin Money.

DiviPay is also continuing to grow. It recently completed a $20 million Series A fundraising, to broaden the range of its services, Kniaz says.

It plans to expand into international markets and add new services such as a line of credit for small businesses waiting on invoices to be paid. The expansion will result in headcount rising from about 20 to 80 over the coming year.
Published by BPAY Pty Ltd (ABN 69 079 137 518) email: The BPAY Scheme is managed by BPAY Pty Limited.  When you use BPAY payment products, the BPAY Scheme is paid fees relating to processing costs and BPAY Scheme membership.  Contact your financial institution to see if it offers BPAY payment products and to get the Product Disclosure Statement.  Any financial product advice provided by BPAY Pty Limited in relation to BPAY payment products is general advice only and has been prepared without taking into account your objectives, financial situation or needs.  Before acting on such advice, you should review the Product Disclosure.

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