Despite the innovations in the consumer-oriented payments, many small businesses still rely on cheques for their business-to-business payments.
And according to a recent study by Scotiabank, managing payables and receivables cost businesses on average $15 to $25 per payment when considering account and processing fees, wire or postage costs, account administration and reconciliation time.
Toronto’s Plooto hopes to take that pain away.
Plooto is a cloud-based payments platform that enables businesses to send and receive payments in an easy, fast, and secure way. Payments are settled within two to three business days and funds are directly deposited into the payee’s bank account.
“Plooto has allowed our clients to completely do away with the ancient process of cheque writing,” said Ryan Lazanis, founder of Montreal’s Xen Accounting.
“With Plooto, our clients can easily streamline payments of supplier invoices electronically in the cloud thanks to integrations with popular cloud accounting software such as Quickbooks and Xero, which not only saves them time, but money.”
With the recent announcement of the Canadian Revenue Agency (CRA) that it will stop using cheques by April 2016, Plooto is a timely business payment solution for small businesses.
Plooto was co-founded by Hamed Abbasi and Serguei Kloubkov and has closed a funding round led by Real Ventures. They previously founded Vast Studios, a casual gaming company which was acquired in 2014.
“We are extremely excited to be working with Hamed and the rest of the Plooto team. They are revolutionizing the way small-medium businesses send and receive payments. Their customers absolutely love their product because of the ease of use, speed and security,” said Janet Bannister, General Partner at Real Ventures.