French Startup Upflow Pivots to B2B Payment Platform
Upflow, a French startup initially focused on managing outstanding invoices, is making a strategic shift to become a comprehensive B2B payment platform. The company, which previously offered a central hub for CFOs to manage invoices and payments, is now expanding its services to include its payment gateway.
The move comes as part of Upflow’s broader roadmap to address persistent issues in B2B transactions. According to industry experts, B2B payments have seen little evolution over the past five decades, with many U.S. companies still relying on paper checks for offline payments. In Europe, bank transfers remain common but require manual reconciliation, often leading to late payments due to outdated methods rather than intentional delays.
Targeting midsized companies with revenues between $10 million and $500 million, Upflow aims to assist CFOs in implementing direct debit and online payment strategies. The company’s goal is to transition a significant portion of its clients to more efficient payment methods, such as card payments or direct debits.
As part of this strategic shift, Upflow is positioning itself as a financial relationship management (FRM) solution. The company is also transitioning from a purely Software-as-a-Service (SaaS) revenue model to a hybrid approach, incorporating both SaaS and payment revenue through its new payment gateway, developed in partnership with Stripe.
Looking ahead, Upflow plans to integrate B2B “buy now, pay later” options and factoring for invoices. The company is also exploring embedded finance solutions to offer credit scoring data, potentially providing valuable insights for risk assessment and credit scoring in the B2B sector.
This pivot represents a significant evolution for Upflow, as it seeks to address the complex challenges of B2B payments and establish itself as a key player in the financial technology landscape.