Automation is coming to your SME customers world-wide. Sage, a payments processor, has launched a Smart Money Movement solution which allows SMEs to collect money, make payments, and reconcile them through an automated single interface and account.

This new solution is the integration of numerous functions already available through a range of Sage products, according to Charles Pittaway, MD of Sage Pay. 

Changing what SMEs in South Africa can do

The Smart Money Movement solution comes at no up-front cost to existing users of the Sage products with which it integrates, including Sage Pastel Accounting, Sage Pastel Payroll, and Sage VIP software. Sage charge users on a per-transaction basis.

”Over 250 000 SMEs in South Africa use Sage software to simplify, control and manage their business processes," says Anton van Heerden, executive VP and MD of Sage South and Southern Africa. "Now, by combining our accounting and payroll solutions with Sage Pay's payments platform, they can streamline their operations even further."

Global impact on collections from SMEs 

This solution will be particularly useful to MNCs collecting from SMEs world-wide because it enables them to automate their payments and collections and integrate it their money management systems at a significantly lower cost than they would traditionally have to pay for this functionality. So SMEs will be far more open to accepting automated collections solutions from their MNC suppliers.

The impact will also be felt on banks who have traditionally been able to make much higher margins from their SME services. The problem here is that they are competing with services which are being offered as part of an existing range of services which enables Sage to offer the services at much lower charge. 

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CTMfile take: Is the solution for MNCs to get the costs of doing business with SMEs down to partner with Sage (and similar full accounting and payment service companies) to change the business model? This could dramatically change the business model for trading with SMEs, and open up new markets?