Payplant, a company specialising in on-demand digital invoicing, is looking to work with developers to speed up payments they receive from enterprise customers and app stores.
Ronjon Nag, co-CEO and founder of Payplant, explained to Mobile World Live that the company is “trying to serve the underserved area of small enterprise”, including app developers.
Payplant’s Pay Me Now platform allows invoices sent to large enterprise customers from small suppliers to be paid in as little as 72 hours, rather than the 30 to 180 days it can often take.
Payments are made from Payplant’s Alternatives Fund, based on customer-supplied information and public and third party data, such as IRS data accessed by APIs.
As well as enterprise customers, Payplant also provides its service to developers chasing app store revenue from the likes of Apple and Google. “App stores will be a specific target for segment,” he noted.
This boosts the cashflow for app developer, meaning they can reinvest their income to grow their business more quickly. “Developers can reinvest into other activities, marketing, development of new products,” Nag said.
Payplant takes a 1.2 per cent commission in exchange for lending the funds in lieu of payments. It can provide 80 per cent of the value of invoices, with the remaining 20 per cent kept back in case of adjustments.
Payplant previously conducted a nine month beta programme in which it partnered with the State of Illinois in the US to provide faster payment to suppliers, as well as tech companies Amazon, HP, Dell and VMWare.
With the full launch of the service, Payplant is aiming to lend small businesses $100 million in the course of next year.
Pollen, which works exclusively with developers and app stores, launched a closed beta of a similar service in May and plans to distribute $150 million of what it calls ‘velocity capital’ in 2014.
By accessing sales data directly from the relevant app store, Pollen claims it will be able to pass on 95 per cent of the proceeds every seven days.
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