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Veem: Vendor Analysis (Part 3) — SWOT, Analysis of Competitors, Summary

Global Risk Management Solutions (GRMS)

Cross-border payments represent a significant opportunity for non-bank solution providers entering the market — and for procurement and finance organizations looking for ways to lower costs, improve visibility and reduce risk.

Today when businesses transfer funds to counterparties in different jurisdictions, they usually use bank channels. To move across borders, the funds must be routed through correspondent banks, which have relationships with both the sending and receiving banks. This complex network of intermediaries carries with it transaction and foreign exchange (FX) fees that, while greatly improved by the SWIFT gbi, can add significant costs (e.g., Goldman Sachs estimates the transaction and FX fees average 4% to 4.5% of volume).

This makes a nice business for the banks, but the margin also puts them in the crosshairs of B2B payments solutions looking to disintermediate this bank product. Within this market, Veem, a B2B payments specialist, is targeting this opportunity.

This final Spend Matters PRO report provides company treasury and procurement organizations an overall assessment of Veem’s capabilities in the cross-border payment space and if their recurring and one-off cross-border payments solution could be right for them. Part 1 of our analysis provided a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Veem for cross-border payments. Part 2 covered product strengths and weaknesses. This final installment offers a SWOT analysis and explores competitive alternatives to Veem.

Veem: Vendor Analysis (Part 2) — Product Strengths and Weaknesses

Supplier compliance

Payment solutions are increasingly intertwined with procurement and sales activity. Within B2B, this occurs at the enterprise level (e.g., as an extension or component of source-to-pay and order-to-cash, or O2C) as well as at the SMB and contractor levels. And it is happening on a global basis, as trade in both goods and services expands. Indeed, as cross-border trade continues to grow, specialized solutions for cross-border payments are more prevalent, reflecting similar increases in domestic payment options.

For businesses needing to send or receive payments, many options exist — like PayPal, Stripe, Hyperwallet, Amazon Payments, Transfermate, etc.

Within this market, Veem offers payors (or senders) the ability to pay companies without having to maintain vendor or contractor banking account details in their ERP. It enables payors to lock in foreign exchange rates in advance, to fund payments working with Veem’s Pay Later capability, and to move money without incurring expensive transaction fees.

This Part 2 of the series will explore those areas as well as Veem’s other strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider its analytics capabilities. Part 1 of our analysis provided a company and detailed solution overview and a recommended fit list of criteria for firms considering Veem. The third part of this series will offer a SWOT analysis, user selection guide and competitive market analysis.

With all that in mind, let’s dive into Veem’s product strengths and weaknesses.

Veem: Vendor Analysis (Part 1) — Background and Solution Overview

FM Global Resilience Index

Cross-border payment transactions accounted for $23.7 trillion globally in 2018, with the bulk consisting of B2B payments. More and more companies must make payments not only to vendors but in support of contractors, one-off buys, landlords, etc. According to a study by the consulting firm Strategic Treasurer that surveyed corporate treasurers, 37% of corporations now operate across at least 11 countries, 34% use six or more banks, and 39% generate payments in six or more currencies.

Fintechs have been leading the way to offer more efficient methods to make recurring and one-time payments, while doing the heavy lifting of compliance, bank account management, API integration, reporting — all while providing a simple user interface. As the service-based economy continues to grow and go global, corporations will increasingly adopt modern payment solutions designed to make the cross-border experience a lot less painful than going through the correspondent bank wire system.

Veem offers that modern payment solution. The company was founded in 2014 by a team of industry veterans with over 100 years of combined experience in payments, payment processing and banking IT infrastructure management. It is headquartered in San Francisco and has offices around the world with 110 employees. Their mission is to change the legacy financial payment system through innovation and improve the costly and outdated payments industry by building a new user-focused financial ecosystem that services businesses globally.

Veem enables businesses to send and receive payments in local currency with a few simple steps using their proprietary multi-rail technology across several global networks. Its aim is to simplify domestic and international payments for small and medium-size businesses.

It facilitates recurring and one-at-a-time B2B payments between companies, particularly small business. Veem’s system allows a buyer to initiate a payment, or it allows a supplier to upload an invoice and request a payment.

The first of the three-part Spend Matters Vendor Snapshot of Veem will provide an overview of the company and its solution as well as a selection checklist. Other parts will provide strengths and weaknesses for the solution, a vendor SWOT analysis and a comparison of competitors to Veem.