JP Morgan is expanding its focus on the Canadian corporate market with the launch of its Single-Use Accounts (SUA) solution. J.P. Morgan's SUA is a fraud-reducing, cost-efficient virtual card payment method for processing supplier payments.
By providing unique, one-time use credit card numbers for each payment, SUA is designed to streamline the payment process and help improve cash flow for both buyers and suppliers. 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.
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 & entertainment cards, in Canada since 1995. J.P. Morgan is a pioneer in SUA technology, having launched the solution in 2004. J.P. Morgan's SUA solution is one of the company's fastest growing products. Client spend via J.P. Morgan 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."
According to the RPMG Research 2010 P-Card Benchmark Survey, sponsored by J.P. Morgan, approximately 27% of mid-, large- and Fortune 500-size organizations in the US are currently using SUAs with a projected growth of rate of nearly 50% by 2012. RPMG's report also indicates that SUA spend per transaction is outperforming traditional purchasing card spend per transaction, as transaction limits tend to be significantly higher for organizations that use SUAs.
"Single-Use Accounts are still a relatively new concept fncept 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.