The UK’s biggest supermarket chain has responded to criticism by pledging to speed up payments to its suppliers.
Tesco’s chief executive, Dave Lewis, said that from next June the company would ensure that payments to its smallest suppliers that deliver up to £100,000 of products annually went out within 14 days. He also promised a “simpler” payment model for the 2,000 firms that supply Tesco, which include a number of small family-owned businesses.
Medium-sized suppliers providing up to £10m of products per year, will have their accounts settled within 23 days and major suppliers will have to wait no more than 28 days.
The company hopes that the move will improve its reputation after accusations were made that it deliberately delayed payments, employed unacceptable methods in booking commercial income from suppliers and routinely flouted industry standards on payments.
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
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