Breaking Barriers
More articles of the Belgium Fintech Magazine
READ ALL ARTICLES
Want an exclusive paper copy?
Want to be the next expert to inspire our audience?
MORE INFO HERE
Discover one of the articles from our brand new magazine, the Belgium Fintech Magazine - #1 Dec 23
Breaking Barriers, POM’s Bold Vision for Invoice Payments
An interview with Johannes Vermeire, CEO & Co-founder at POM
In the dynamic and ever changing fintech landscape, a revolution is underway, fundamentally altering how businesses handle receivables. POM, a Belgian fintech innovator, is tackling the problem of delayed invoice payments, head on, with a multiprong approach that addresses, behavioural, financial, and technological issues that lead to delayed invoice payments, all at once.
Delayed invoice payments is a problem that disrupts business activities and that can have serious cashflow implications, especially for small and medium size organizations. Moreover, it can land individuals with late penalties and in situations of unnecessary debt. «Around 50% of delayed invoice payments arise from procrastination or the perception of payment as a tedious task, while the other 50% is most often associated with the inability to pay» says Johannes Vermeire, CEO and Co-founder of POM a Belgian fintech that aims to make invoice payment simple and convenient.
While many have tried to solve this problem with technology, the issue persists, largely due to the prevalence of bias that stand in the way of individuals and their unpaid invoices. “Identifying the root cause of the problem is half of the solution” explains Vermeire. “Often times people just forget or leave their invoices to be dealt with at a later stage” he explains.
Recognizing this, POM has developed a multi-channel payment platform, integrating SMS, payment links, buttons, and QR codes. This approach simplifies the payment process, making it more engaging and less of a burden for users. POM’s core value proposition lies in its commitment to simplify the payment process.
Vermeire explains, «We aim to eliminate any hurdles in payments, allowing people to pay invoices on time and stay out of debt.» This approach also benefits companies by ensuring quicker and more efficient invoice payments.
Beyond Convenience
In a market where payment processing is becoming a commodity, POM differentiates itself by adding value on top of basic payment services. Beyond just convenience, POM also addresses the very real issue of difficulty to pay. For those facing financial challenges or unexpectedly large bills, the company works with its customers, to help them offer seamlessly flexible payment plans. This feature is essential, as it reduces the stigma around financial difficulties, allowing individuals to manage their payment schedules discreetly. For instance, their payment plans for the federal agency of justice demonstrate significant savings in time and resources, highlighting the added value POM brings to its customers.
Anticipating Market Needs
As a B2B company, understanding the demands of the B2C market means that they can anticipate the needs that their clients will experience and develop tools and solutions to stay ahead of the market needs. POM actively seeks feedback from those who pay invoices and uses it to inform and develop new features like payment on the due date. “This customer-centric approach has allowed us to continuously innovate and meet the evolving needs of our client’s customers” elaborates Vermeire.
POM is enhancing its payment solutions by integrating with the Payconiq by Bancontact app, a significant move in the Belgian fintech space. This integration is designed to simplify invoice payments for all Belgians using the app. With this collaboration, POM will deliver direct payment requests into the app, facilitating immediate and secure invoice payments. This initiative not only streamlines the payment process for users but also significantly reduces the risk of phishing and fraud, as only approved merchants can access the app. This integration represents a strategic step by POM in providing innovative and secure payment solutions.
Leveraging Technology
The impact of PSD2 on account-to-account payments cannot be understated. The ability to seamlessly transfer money, immediately between accounts has gone a long way in enabling timely invoice payments. POM integrates major tools like PSD2 transactions through open banking and utilizes machine learning in creating reminders. “Through machine learning, we automate the assignment of customers to different payment flows, offering personalized reminders based on their behaviour and improving recovery rates by about 10% compared to manual methods” assures Vermeire.
Vision for the Future
POM’s vision is dedicated to simplifying invoice payments, ensuring that everyone can easily meet their financial obligations and avoid financial difficulties. Vermeire emphasizes this commitment by stating, «Our goal is to ensure that everyone can comply with their financial commitments in a way that best fits their circumstances and prevents individuals from falling into financial trouble.» POM’s vision has earned them a nomination for the digital society awards, thanks to the payment plan functionality they implemented for the federal government. Looking ahead, POM’s vision goes beyond technological innovation, aiming to fundamentally transform how people approach financial responsibilities. Through streamlining payment processes and offering adaptable solutions, POM seeks to continue assisting companies in receiving prompt payments while helping customers better manage their finances.
By Chris Crespo / HighTech Denmark
Published and Distributed by FinTech Belgium asbl
Contact: Alessandra Guion - CEO
>> DOWNLOAD THE PDF ARTICLE