The payment process between businesses often poses significant challenges. Traditional invoicing methods are cumbersome, involving manual follow-ups and dealing with multiple payment portals, leading to inefficiencies and delayed payments.
Monto just emerged from stealth with an aim to revolutionize this process.
I had a chance recently to speak with Maya Cohen, co-founder and CEO of Monto, about the problem the company is trying to solve, and the vision for how they plan to solve it.
Understanding the Challenges in B2B Payments
The traditional method of sending invoices via email or post is fraught with inefficiencies. Companies often need to manually follow up to confirm receipt and ensure payment, a process that is both time-consuming and prone to errors. This not only delays payments but also strains business relationships.
Enterprises also often require suppliers to use their specific payment portals, adding another layer of complexity. Navigating through different systems and formats can be particularly challenging for small and medium-sized businesses, leading to further inefficiencies and delays in receiving payments.
One of the most significant issues, though, is delayed payments. Despite agreed terms, enterprises often fail to pay on time, with suppliers left to chase their payments. This inconsistency can cause severe cash flow problems for businesses, impacting their operations and growth.
Cohen described how they recognized the issue and developed the initial version of Monto with a budget of $15 while they were still university students.
A Game Changer in B2B Payments
Monto is designed to tackle these challenges, offering a solution that integrates multiple payment portals into one streamlined platform.
Monto connects users to over 300 payment portals, consolidating various platforms into a single interface. This integration simplifies the process of managing invoices, reducing the complexity and time involved in dealing with multiple systems.
“We want to build the smart connections to all of the portals in the market,” emphasized Cohen. “By doing that, you have one source of truth, one platform that consolidates all of the various payment portals in one place, so you can deliver invoices, match them to the PO and get paid with zero touch, so without even doing anything.”
Cohen described how Monto automates the entire process from invoicing to payment, ensuring invoices are in the correct format required by each portal. She explained that this zero-touch approach minimizes manual intervention, reducing errors and speeding up the payment cycle.
She also emphasized that businesses gain real-time visibility into the status of their invoices. This transparency reduces the need for follow-up calls and ensures that invoices are seen and processed by clients. Once an invoice is approved through Monto, it becomes a legal obligation for the customer to pay, significantly lowering the risk of non-payment.
Benefits of Monto for Businesses
Cohen told me that Monto operates on a SaaS subscription model, making it accessible to businesses of all sizes.
Monto’s streamlined invoicing process is designed to reduce the administrative burden on businesses, leading to faster approval and payment cycles. By automating the invoicing process, Monto eliminates many of the delays and inefficiencies inherent in traditional methods.
Monto incorporates AI to intelligently format and process invoices according to each customer’s requirements. Cohen also shared that they plan to introduce further financial management tools, such as early payment discounts, enhancing its value proposition.
Market Trends and the Future of B2B Payments
Open banking regulations are creating opportunities for platforms like Monto.
These regulatory changes mandate more transparent and efficient payment processes, aligning well with Monto’s capabilities. By complying with these regulations, Monto ensures that businesses are prepared for the future of B2B transactions.
While currently focused on the US market, Monto sees significant potential for expansion in regions with stringent invoicing regulations, such as Europe. The platform aims to integrate with thousands of payment portals, positioning itself as a global leader in B2B payments.
Real-World Success Stories
Monto is already making a significant impact. For instance, Appsflyer has successfully used Monto to automate its payment collection process, improving efficiency and reducing manual efforts. Similarly, Cloudinary has seen a 23.5% decrease in invoice rejections by utilizing Monto, demonstrating the platform’s effectiveness.
“Since we started using Monto, the chaos and frustration around working with supplier portals has completely disappeared. The platform provides full visibility of invoices and PO statuses, which makes my life so much easier. I would absolutely recommend it to anyone,” explained a senior accounts receivable specialist from AppsFlyer.
Streamlining Payments
Monto addresses the critical challenges in B2B payments, offering a modern, automated solution that simplifies invoicing and payment processes. By integrating multiple payment portals, automating workflows, and providing real-time visibility, Monto is transforming the B2B payment landscape.
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