Mastercard and U.K. neobank Ampere teamed up to enhance the latter’s services for small businesses.
The collaboration expands Ampere’s services and transfers offering, allowing its customers access to card-to-card payments, according to a Thursday (Aug. 1) press release emailed to PYMNTS.
Card-to-card payments convert “over 60 different currencies at a faster and cheaper rate than traditional banking systems,” the release said. “Ampere removes until-now inconvenient delays and complications associated with international payments.”
Founded in 2022 and based in London, Ampere provides business banking for small- to medium-sized businesses (SMBs) in the United Kingdom and European Union, per the release.
“Our card-to-card payment offering and recent pan-European expansion empowers [SMBs] to seamlessly expand their own financial and operational growth through cross-border transactions,” Ampere Commercial Director Kris Krupecki said in the release. “At a time when [SMBs] are facing a raft of challenges, whether economic or operational, they can rely on Ampere for a tailored, integrated and efficient banking partner.”
SMBs are facing “a perfect storm of financial difficulties,” PYMNTS wrote earlier this week, including outdated payment systems, ongoing inflation and delayed payments.
“These issues disrupt cash flow and hinder growth, exacerbated by inefficient manual accounting practices and reliance on paper payments,” the report said. “As inflation pressures margins and payment delays become more frequent, SMBs are under intense pressure to modernize their financial operations.”
To cope with the pressure, SMBs are looking for banking partners that can provide the digital solutions they need, and they are prepared to move to institutions that offer better financial management solutions after feeling frustrated with traditional lenders.
The PYMNTS Intelligence report “The $150 Billion Question: Can Community FIs Capture the SMB Digital Banking Opportunity?” offered insights into the changing financial landscape for small businesses. It showed that SMBs feel strained by late payments, inflation and outdated payment systems. Delayed payments average 29.1 days, worsening cash flow issues.
“With 76% of SMBs under $10 million in revenue facing inflationary pressures and 71% experiencing cash shortfalls, many resort to personal savings or loans to survive,” PYMNTS wrote this week. “Outdated manual processes, including paper payments, further complicate financial management and hinder efficiency, underscoring the need for digital solutions.”
