Nuvei and Sage Team to Bolster Construction Sector B2B Payments
Payments FinTech Nuvei is expanding its B2B payment capabilities for the construction sector.
The expansion, announced Tuesday (May 6), includes new integration support for Sage Intacct Construction Real Estate (CRE), building on Nuvei’s existing support for Sage 100 Contractor and Sage 300 CRE.
“The construction industry has historically been underserved when it comes to payment technology,” Philip Fayer, Nuvei Chair and CEO, said in a news release. “With our latest integration into Sage Intacct CRE, we’re enabling thousands of firms to reduce complexity and accelerate cash flow. This is a prime example of Nuvei’s strategy to create value by aligning deep vertical expertise with embedded payments infrastructure.”
The company said the new integration can help companies improve cash flow and reduce administrative friction through things like real-time payment processing, automated invoicing and surcharging capabilities, to recover credit card processing costs and boost profitability without raising prices.
“These capabilities are designed to address the unique payment complexities of the construction industry, including multi-tiered subcontractor relationships, lien waiver compliance, tax workflows and project-based billing cycles, which have traditionally resulted in delayed payments, manual processes, and strained cash flow,” the release added.
As PYMNTS wrote earlier this year, the construction industry — a $2 trillion business just in the U.S. — is infamous for payment gridlock.
That report used the example of a general contractor completing a multimillion-dollar project, “only to find themselves buried under a mountain of paperwork, waiting months to get paid.” Things are tough for subcontractors and suppliers as well, as they often find themselves juggling bills while waiting for paper checks to make it through the postal network.
This isn’t just hearsay, the report added. Research by PYMNTS Intelligence found that 71% of subcontractors saw delayed payments from general contractors by the end of 2023, up from 60% in 2022. The average payment cycle comes to 57 days, with these delays presenting serious consequences. Slow payments trickle down the supply chain, with smaller businesses struggling or even going under as they wait to be paid.
The research found that a little more than three-quarters of subcontractors have had to pay for material expenses out of pocket, a number that has risen each year since 2021.
“A contributor to these issues is the industry’s reliance on manual payment processes,” PYMNTS wrote. “While most industries have embraced FinTech innovations like virtual cards and digital payment platforms, many construction firms are still stuck in the slow lane, relying on manual B2B payments, including paper checks and ACH transfers.”
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