How relationship-based payments will change the world
December 20, 2019
At the centre of every payment, there is a relationship. Whether it’s between a buyer and seller, a freelancer and company, or manufacturer and vendor, the strength of that relationship depends upon fast and secure payments.
Despite the inherent trust in business relationships, many legacy financial institutions ignore the importance of building strong business relationships. These institutions facilitate one-sided and closed transactions.
At Veem, we think about payments a little differently. Our connected global network puts the relationship between payer and payee at the centre of the payment. This industry leading platform is known as a relationship-based payment network. Thanks to the power of network effects, Veem enhances global business relationships.
What are network effects and why do they matter?
Network effects, simply put, are the additional effects brought to a network by each additional member. For example, if only two people in your area own a telephone, the strength of the network is pretty weak (you’ll probably get sick of talking to your fellow phone owner pretty quickly). But if everyone around you owns a telephone, the network itself is greatly enhanced: suddenly, there is a wide range of people you can easily contact. The 200th telephone purchased arguably brought more value to its owner than the second, thanks to the added value of the network.
Since everyone participates in the network, everyone shares in its increased usability. Every future person who installs a phone line reaps increasingly larger benefits due to the growth of the network.
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Uber is a classic example of modern network effects. Previously, the connection between rider and taxi driver was non existent. Taxi drivers weren’t incentivized to do their best, and riders had no incentive to be a good passenger. But when Uber connected these disparate parties through their network, they created a lasting relationship. Both parties are suddenly incentivized to do their best, whether that’s picking up a rider on time or being a good passenger. The creation of the network sparked a relationship, bringing trust, security, and a better experience for both sides of the transaction.
So what do telephones and ride sharing have to do with payments?
Well, Veem’s relationship-based payment network also creates connections between businesses around the world. When you pay with Veem, you become a member of the network, connecting you to partners around the world.
Veem’s centralized platform strengthens business relationships by bringing transparency, security, and trust to global payments. Our network fosters connections between businesses around the world by providing a simple, secure method to send and receive both payments and data.
Relationship-based payments bring a new level of security to international business payments. Veem’s two-sided platform engages all of the relevant parties throughout the payment process.
By two-sided, we mean that both the payment sender and receiver are activated on the Veem platform. Basically, that means they both have an account. By joining the Veem network, individual users benefit, and the rest of the Veem ecosystem does as well.
Using traditional wire transfers, the sender is responsible for accurately inputting the receiver’s banking information. This leaves sensitive information vulnerable to human error and fraud.
Veem’s connected network empowers both sides of the transaction to actively manage their payments on our secure platform. Each party is responsible for maintaining the accuracy of their own information. To send a payment, you simply need the name and email address of your recipient – they are responsible for the rest. This reduces human error, eliminates the need for double entry of data, and protects sensitive information.
We personally onboard and verify all members of the Veem network to ensure compliance with all necessary legal and financial regulatory bodies. Many SMBs don’t realize the risk of fraud when sending funds, especially to unknown or international partners.
If, for example, you were to mistakenly wire funds to a known malicious actor, you could potentially be held liable (not to mention, the chances of recovering your money are slim).
Veem helps protect SMBs against this risk by ensuring all actors on our network are independently verified.
Disintermediation: Goodbye, middle man!
Disintermediation, which is a fancy term that simply means the act of removing an intermediary, or a middleman, is another benefit of joining the Veem network. Relationship-based payments remove the intermediary financial institutions, allowing individuals to send and receive payments directly from each other.
Veem’s network acts as the middleman between sender and receiver, allowing either party to manage the transaction and associated data.
Disintermediation speeds up and improves the payment process. The lack of middlemen means there are less financial institutions charging fees, helping SMBs save money.
Relationship-based payments also increase transparency, and therefore trust, between business partners. Veem’s connected network allows all parties to view the status of their funds at any time.
Say goodbye to endless back and forth notifications and awkward ‘where is my money’ phone calls: Veem’s end-to-end payment tracker provides complete transparency into precisely where funds are located and when they are expected to arrive. At any time, either party can review and manage their payments independently, bringing complete transparency to the global payments process.
In our connected era, you can track your ride, your dinner, and your online shopping. Veem’s relationship-based network is bringing that level of transparency and accountability to business payments.
A networked revolution
From hospitality to ride-sharing, network effects are shaping the future of business. Networked platforms, like Veem’s relationship-based payments, are bringing security, disintermediation, and transparency to everyday business functions.
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