J.P. Morgan expands into Canada with single-use accounts
One of America’s largest financial institutions, J.P. Morgan, is expanding its geographical reach into the Canadian corporate market with the launch of single-use accounts (SUA). The new program is a fraud-reducing, cost-efficient virtual card payments method for processing supplier payments. By providing a one-time use credit card number for each payment, SUAs are designed to streamline the payment process and improve cash flow for buyers and suppliers. Additionally, the reduction of paper processes will also be reduced with these new accounts.
Investors and business leaders are looking toward the use of SUAs because clients are able to increase the financial rebates associated with credit card payments, further improve payment security, pay vendors more quickly and continue to reduce paper-based payment processes.
According to a statement released by the company, J.P. Morgan has provided corporate and investment banking solutions to the corporate market in Canada since 1965 and currently has banking relationships with many of Canada’s largest companies. The bank has offered commercial card solutions, including purchasing and travel and entertainment cards, in Canada since 1995. J.P. Morgan is a pioneer in SUA technology, having launched the solution in 2004 and the solution is one of the company’s fastest growing products. Client spending using J.P. Morgan’s SUA nearly quadrupled from 2008 to 2010.
“With more than 45 years in the Canadian market, J.P. Morgan has successfully delivered proven products that help corporations improve their purchasing, accounts payable and treasury operations,” said Andrew Pilkington, President, Global Commercial Card, J.P. Morgan. “As the majority of procurement payments are still made with paper checks in North America, SUAs deliver a great opportunity for businesses operating in Canada to further improve their payables processes while reaping greater financial reward.”
“Single-Use Accounts are still a relatively new concept for many Canadian organizations. With our technology and proven track record we see significant opportunity in this market,” said D’Arcy Delamere, Vice President, J.P. Morgan Commercial Card Solutions, Canada.
J.P. Morgan’s SUA is an electronic payables tool that provides customers with the flexibility, float and rebate of a purchasing card while delivering powerful security, antifraud and reconciliation features. With SUA, instead of having one account number for all of an organization’s charges, the payee receives a unique 16-digit account number for each single payment with purchasing controls embedded in the system. This account number is active for only a defined amount and time frame and is electronically matched to pre-purchase information.
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