Yashwanth Madhusudan, Co-Founder and CEO, Fyle
File
File, a New York-based startup, today announces an agreement with American Express that expands its ability to provide critical expense data to small and medium-sized businesses. Fyle, which already has similar deals with Visa and Mastercard, also announced an integration with American Express, which will allow it to set up virtual credit cards for small business customers on behalf of the network.
Forbes first met Mr. Files a year ago, when the company announced a partnership with Mastercard. The startup offers a software package that allows small businesses to automatically access their credit card transaction data, giving them real-time visibility into employee spending. The software also integrates with small business accounting tools so it can automatically capture expense data, eliminating the need for finance staff to manually enter each transaction.
“The integration with American Express completes the cycle,” said Yashwanth Madhusudhan, co-founder and CEO of Fyle. “This means we can offer our software to any small business, regardless of the credit card network they choose.”
This could be a timely advancement for the file. A study released last month by Center, another expense management software provider, found that 46% of U.S. businesses increased their use of business credit cards in the last year, but they also implemented new technology solutions to manage this usage. It has been found. It only increased by 2%. The study also found that many businesses struggle to cope with the manual workload created by expense processing and validation.
“What businesses need is real-time monitoring of where and how their employees are spending money,” says Madhusudan. “This is an issue facing millions of small businesses, but one that receives little attention.”
As File points out, other fintech companies are focusing on issuing new types of credit cards that allow small businesses and other types of borrowers to access financing in a way that fits their profile. There is. In contrast, innovations in related software areas have become much shorter in supply. Small businesses with employees who are taking advantage of all of these new credit cards are still processing transactions the traditional way. You should wait until credit card statements arrive at the end of each month to begin researching employee spending and entering data into your accounting system.
File's agreements with Visa, Mastercard, and now American Express solve that challenge for small and medium-sized businesses that use corporate credit cards issued by either of these networks, the majority of the market. It is an object. “Small businesses don’t need yet another credit card solution,” says Madhusudan. “They need something to handle the workload and challenges presented by these cards.”
The startup does that by giving businesses access to a real-time feed of transaction data from credit card networks. Every time a business credit cardholder spends money on their card, transaction data is immediately visible to the company and available to the accounting team.
File also continues to explore opportunities to add further value, including a virtual credit card offering with American Express. Virtual credit cards allow businesses to give specific groups access to funds from credit card providers, but with highly limited control and without having to hand over sensitive information such as card or account numbers . For example, a subcontractor may be given access to a fixed amount of funds to purchase supplies from a particular vendor.
Virtual credit cards “give customers access to control, enhanced security, and cash flow management,” says Madhusudan. The concept is gaining traction across the credit card market, he says.
Joe Woodard, CEO of Woodward and an accountant and advisor specializing in small businesses, believes virtual credit cards can work well for many small businesses. “The integration between File and American Express cards is unlike anything else I've seen in this space,” he says of this innovation. “We are excited to bring this to Woodard to enhance both security and spend management.”
Woodward is one of approximately 150 partners that Fyle currently has on file in the accounting and small business advisory market. The company has also seen rapid growth in customer numbers over the past year, with around 2,000 small and medium-sized businesses currently using its services.
File has raised about $15 million in funding from investors to date, but Madhusudan said current growth is being funded by cash generation from customers.
follow me twitter.
