Spend Matters Future 5 2024 – Why we chose BlueBean

Spend Matters is delighted to announce the 2024 roster for our ‘Future 5′ list. For the sixth year in a row, our analysts have highlighted five start-ups that excited them the most. This year, the five companies that have proven themselves as potential future trend setters are BlueBean, Covalyze, Halo Ai, Ivoflow and True ValueHub.

To warrant such attention, these vendors must have a product that is ideally two to five years old, is used by more than five customers and displays an innovative application of technology. Moreover, these vendors must have less than $10 million in revenue, and our analysts must find them both sustainable and growing with a clear momentum. In this series of articles, we explain what these vendors offer, why they are likely to become future members of our ‘50 Procurement Providers to Watch‘ and ‘50 Procurement Providers to Know‘ lists and what challenges they may face.

Get to know all the procurement tech providers that made our lists this year.

Today we are sharing the reasoning behind our selection of BlueBean.

Read also our interview: An Introduction to BlueBean.

What is BlueBean

BlueBean is a request-to-pay solution that eliminates the need for traditional supplier portals, purchase orders, invoices and expense claims. Positioned as a ‘Business Payment Automation’ platform, it automates both pre- and post-payment processes using virtual cards, streamlining procurement and expense management. BlueBean allows purchasing anywhere a card is accepted — whether for software subscriptions, travel or goods — without being restricted by catalogs.

The platform’s browser extension enables real-time procurement through online marketplaces and allows users to control spending by issuing pre-approved virtual cards with predefined limits. It automates accounting tasks by directly integrating card statements into financial systems, minimizing manual intervention. Additionally, users gain access to BlueBean’s Savings Marketplace, which offers negotiated discounts, adding further value beyond basic expense management.

Why we chose BlueBean

We chose BlueBean for our 2024 Future 5 list because of its innovative approach to request-to-pay, which breaks away from traditional procurement methods. BlueBean simplifies procurement by eliminating the need for supplier portals, purchase orders, invoices and expense claims. Its browser extension automates accounting tasks and integrates virtual card payments, streamlining the purchasing process with real-time approval workflows and v-card issuance at the transaction level.

Unlike traditional e-procurement solutions limited by catalogs, BlueBean allows users to purchase anything from any online marketplace — whether it’s software subscriptions, travel or goods — without restrictions. It mimics the consumer purchasing experience by issuing pre-approved virtual cards with predefined spending limits, preventing unexpected expenses. Furthermore, it simplifies reconciliation by integrating card statements directly into the accounting system, removing the need for POs and invoices.

BlueBean’s AI-powered approvals offer transparency into spend, while its marketplace provides savings through access to negotiated catalogs and discounts. This makes BlueBean a great fit for the larger small to mid-sized organizations, many of which do not have a dedicated procurement team.

Though it shares basic functionalities with expense management vendors, BlueBean stands out by integrating procure-to-pay (P2P) features that enhance spend control for SMBs and mid-market companies. By expanding beyond traditional solutions and offering a more flexible, streamlined purchasing experience, BlueBean addresses key needs in the procurement and expense management space.

Threats or challenges ahead

BlueBean is a newcomer to the market, and while it offers a unique approach with its portal-free procurement process and real-time virtual card issuance, it operates in a space where vendors are rapidly evolving and improving their offerings. BlueBean will need to keep pace with these innovations to stay competitive.

One key challenge is the lack of capabilities that more established tools offer, such as direct integrations with key accounting tools, though BlueBean is actively working on this. Additionally, the absence of policy-based spending controls and category-specific spend limits restricts its ability to enforce compliance, which is crucial for preventing unauthorized spending.

Another area where competition is more advanced is reporting. BlueBean’s basic reporting features may limit its appeal as businesses grow and require deeper insights. Furthermore, the lack of certain enterprise-level features could hinder BlueBean’s expansion into larger organizations, a potential growth area.

BlueBean’s success will depend on how quickly it can roll out these improvements while differentiating itself from competitors serving SMBs and mid-market companies with more established expense management tools and P2P functionalities. Keeping up with fast-paced market developments will be crucial for its long-term success.

Look out for more coverage of the Spend Matters Future 5.

Webinar

On October 31, our analysts recorded a webinar to explain their selection process and what makes a provider stand out.

Reach out if you like to know more about becoming a Future 5.

If you are thinking about buying procurement technology, try consulting Spend Matters TechMatch for a rapid shortlist.