JPMorgan Chase & Co. has signed up four users for its corporate payment system and expanded the network's capabilities by adding procurement services.
The New York company said Monday that Key Energy Services Inc., Qwest Communications International Inc., Tiffany & Co., and Verizon Communications Inc. have agreed to use the order-to-pay system, which automates the process of delivering and paying invoices.
American Express Co. and MasterCard Inc. have also introduced corporate payment systems.
The Association for Financial Professionals reported last week that 74% of such payments are made by check.
Also Monday, JPMorgan Chase said it has added to its system a "procure-to-pay" function that lets companies place orders electronically.
JPMorgan Chase's corporate network was built largely with capabilities picked up in the May acquisition of Xign Corp., a payments vendor that had developed a system that enabled companies to process incoming invoices quickly and qualify for early payment discounts.
The banking company says that its system can help users increase profits by 1% to 2%, by paying suppliers quickly. Many suppliers offer discounts of 2% for payments received within 10 days.
Susan Gease, Qwest's director of finance, said in a JPMorgan Chase press release that the banking company "presented a compelling business case that supported our need to automate financial settlement operations."
