Embedded finance startup Monite and Codat, a data application programming interface (API) for small businesses, have teamed up to integrate Accounts Payable (AP) and Accounts Receivable (AR) functionality into apps existing.
According to a report from AiThority on Tuesday, July 26, on average, small businesses use more than 40 apps to manage their finances and operations, from accounting, expenses and sales to forecasting and analytics.
This number is growing by about 30% year over year, thanks to the number of new software tools for small and medium-sized enterprises (SMEs) coming to market, according to the report.
“There’s no shortage of great financial apps for SMBs,” said Ivan Maryasin, co-founder and CEO of Monite. “What’s still missing are the ‘super apps’ that bring it all together – a financial operating system created by neo-banks or vertical SaaS companies to dominate the SME financial stack.
“Until now, the cost of building this platform has been too high, too risky and simply diverts capital that could be used elsewhere, draining resources and reducing opportunities to scale and develop core value propositions. .”
Monite and Codat’s partnership will enable software-as-a-service (SaaS) platforms and financial institutions (FIs) to integrate billing and invoicing capabilities into their applications to create a unified offering for businesses to manage their operations and their finances.
“It’s amazing how many platforms are coming to market to help SMBs, but it can take time to manage them and get the most out of them,” said Pete Lord, CEO and co-founder of Cod. “Integrations like the ones we enable with Monite ensure that key financial data is not siled and flows freely and automatically between systems, meaning businesses can be managed from a single source of truth.
“This is another important step in helping systems talk to each other, removing hours of tedious administration and ultimately unnecessary barriers to growth.”
In March, Maryasin told PYMNTS that Monite’s API allows B2B companies to plug financial automation features into a simple API – giving any neobank, marketplace or vertical SaaS player the ability to offer billing. , access point automation and expense management to their customers within their existing interface.
Related: Integrated financing streamlines expense management for EU SMEs
The Berlin-based FinTech, founded in 2020, covers the United States and most major European markets, although the company said it plans to expand internationally in the future.
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