Corporate vs. Business Credit Card: What is the Difference?
Corporate credit card vs. a business credit card. You might have heard both terms used interchangeably, but what's the difference?
Primarily, corporate cards are issued to large businesses with many employees, while business credit cards are designed for smaller businesses. Corporate cards generally have higher spending limits and may offer more perks than business cards due to their volume.
This post will cover the main differences so you can decide which card is best for your business.
What is a Business Credit Card?
A business credit card is a commercial payment solution for companies and businesses. Similar to a personal credit card, business credit cards are used when business-related purchases are made on credit provided by one of the credit card companies.
Banks in the UAE and MENA offer various business credit cards for small, medium, and large companies.
Business credit cards usually offer higher credit limits than personal credit cards and may come with exclusive privileges, such as free travel insurance, concierge services, and air miles.
In the case of small businesses, a personal credit score will play an important role in credit limit approval.
What is a Corporate Credit Card?
A corporate credit card is issued to company employees to help with business expenses. The company will be liable for any debts incurred on the card.
It is important to note that corporate cards are not personal credit cards and should only be used for business purposes.
Financial institutions expect you to spend more with a corporate card than a business card, as the companies that require those cards are usually bigger. Therefore, the company must have a good credit score to qualify. This can come with various perks, such as lower interest rates, extended grace periods, and, most importantly - higher spending limits.
At the same time, there can be some drawbacks, such as:
- Long approval periods due to the nature of the financial product.
- Limited online features for your cards and company spend management.
What is a Pluto Card?
Pluto Card is MENA's corporate card that helps finance teams take control of their company's expenses while saving their business time & money. While Pluto can't give you a line of credit, you will be able to instantly issue as many business and corporate cards as you need while getting a complete overview of your business's spend management on one dashboard.
Virtual credit cards
Virtual cards are corporate credit card numbers used for online business-related purchases and contactless payments.
Although there is no physical card, virtual credit cards are great as they are flexible, convenient, and controllable.
With virtual credit cards, you can:
- Issue unlimited virtual credit cards/employee cards;
- Create a virtual credit card within seconds;
- Set employee spending limits to avoid going over budget;
- Generate a one-time use purchase card that deactivates as soon as it is used;
- Set purchases to be made with specific vendors so the card can't be used for other purchases;
Chances are that if you need a virtual credit card at your existing bank, it might take quite some time, and the reporting and limit setting options might not be very user-friendly.
While Pluto cannot provide you with credit cards, we can issue as many virtual cards as you need with just a few clicks:
Physical credit cards
Physical corporate credit cards serve the same purpose as virtual and business credit cards, making payments. Unlike virtual cards, physical corporate credit cards can be used in person to make purchases.
While both virtual and physical credit cards are comparable, the main differences are:
- Physical corporate credit cards may take up to 3 business days to be delivered.
- Virtual cards cannot be used physically.
- Virtual cards are safer for the user, as they cannot be lost or stolen.
Benefits and perks
The benefits and perks differ for business and corporate credit cards and Pluto cards.
Business & corporate credit cards:
- Receive Business reward points for purchases made that can be redeemed for future purchases.
- Gain access to over $35,000 in perks and rewards programs
Why are Business Credit Cards and Corporate Credit Cards Different?
Now you know the main difference between business and corporate cards, but let's investigate some of them in more detail.
Expense management tools
Business credit cards are frequently limited to your online banking platform. In the case of corporate credit cards, you may get something slightly better - an enterprise solution.
But from what we have seen, the speed of card issuing or limit changes is usually lacking.
Pluto doesn't give you a credit line, but here is a list of things that Pluto's expense management platform does:
- Unlimited corporate cards (within seconds);
- Set spending limits on corporate cards to avoid going over budget or being overcharged;
- Issue one-time purchase cards that deactivate after being used;
- Real-time transactional data - know what (and where) is being spent in real-time;
- Ability to oversee company financials and receive instantaneous expense reports;
- Automated accounting;
- Sync transactional data to major accounting platforms;
- Simple and quick reimbursements;
- Digitized receipt reconciliation;
- Close books in hours, not days.
Corporate and business card fees
The fees that you might have to pay on corporate and business cards fall into two main categories:
For business and corporate credit cards, annual fees may differ depending on the bank or credit card issuer you choose to move forward with. Typically, the UAE's yearly fees range from 0-800 AED, with 'free for life' being the most popular.
If there are any fees, you can typically waive them by spending a certain amount per year.
Pluto cards do not have any annual fees and are entirely free; however, if you're a large corporation that wants unlimited users, custom ERP integrations, or a dedicated account manager, there will be a monthly subscription fee.
Business and corporate credit cards tend to incur FX fees, making it expensive for a company owner, a small business, or a large business to do any transactions outside their domestic currency.
FX fees can be high, and credit card issuers are usually not transparent with the fees that come with them. Typically, fees come in the form of an FX spread and are hidden inside your payment, meaning you might be paying 2-6% for a transaction in a different currency.
Just imagine how much of your spending is in a different currency and take an optimistic 4% fee from that amount. Now multiply it by five years.
Pluto does not charge FX fees, making it the perfect choice for companies or businesses that frequently transact in foreign currencies.
Application & Approval Process
You must wait around two weeks for a business credit card approval. After the approval process, it may take up to 10 business days to receive your business credit card.
With a corporate credit card, the time may vary, but the chances are that you will need to wait more than 5 business days before you get approved.
From our experience, when you need an expense card - you need it on the spot!
Pluto has adopted a KYB & KYC (know your business and client) process that allows us to onboard customers in minutes. After you set up your account, you can start issuing virtual cards and continue your work without halts or limitations.
Corporate vs. Business Credit Cards Pros and Cons
While a corporate credit card and a business credit card may be comparable in some aspects, there are some differences between the two financial products.
Business credit card pros
- Available for most businesses in their standard banking products;
- Standard application process with low business requirements;
Business credit card cons
- Usually limited in numbers, one card is internally shared amongst many employees. That creates bottlenecks in spending and raises various security risks;
- Non-existent (or very limited) spend management platforms to monitor your reporting;
- No virtual cards;
- High FX fees;
Corporate credit card pros
- Higher spending limits;
- Possibility to issue several cards;
- Safe & secure, as information is not being shared;
Corporate credit card cons
- Longer approval process;
- High FX fees;
While the pros and cons for both types of cards may vary, the final decision will be based on the size of your business.
Why Pick Pluto Card for Business and Corporate Users?
As mentioned, Pluto won't give you a line of credit; instead, Pluto provides you with an all-in-one expense management solution.
Pluto's spend management platform
- All your business expenses are at your reach on Pluto's dashboard;
- Control over all issued cards and their limits;
- Creation of unlimited virtual cards;
- Real-time expense reporting;
Approval workflow on Pluto
Once you have access to Pluto's expense management dashboard, you'll also be able to set up approval flows and automation.
With Pluto's approval workflow, you can:
- Get visibility and control over your expenses;
- Streamline how you manage your spending;
- Automatically direct approvals to the right employees;
- Create approval flows within departments;
Real-time expense reports
With Pluto cards, you'll gain real-time transactional data on company spending while being able to set strict budget limits.
This will also help you make informed decisions about allocating resources and improving your P&L.
Additionally, you can also set up notifications to be sent to your accounting or finance team whenever a transaction is made. This way, they'll always be in the loop and can take appropriate action if needed.
Which Card is Best for My Business?
The final pick of the card will depend on several factors related to your business.
The needs of companies based on their industries may differ. Consulting businesses need a flexible card solution with no FX fees, as their employees travel frequently. Digital agencies need multiple virtual cards to onboard new projects and pay for ad networks daily.
Consider the needs relevant to your industry and decide from there. While Pluto is an excellent pick for all industries (as we have a very versatile product), here are some of the use cases that illustrate the needs and how Pluto solves them:
Annual revenue, the number of employees, and spending volume will also come into play when making your decision.
If it is just you or a couple of employees, you may not need many cards (or you might take advantage of Pluto's virtual cards).
On the other hand, if you have a sales team that needs to pay for lunches with prospects every second day, one card in the business owner's name will be problematic!
How much control do you need over your spending? Classic credit cards (be it business or corporate) usually have just a few features that are extensions of your online banking.
In some cases, that might be enough. If there is one card and one person using it - setting limits and monitoring the spending is not an issue.
Pluto comes into play when you have several holders and many cards, as you can set custom limits on cards. Real-time reports of spending suddenly become very important to increase and decrease limits on the go.
- Business credit card is the best fit for small business owners; they offer a standardized solution.
- Corporate credit cards are for bigger companies, allowing higher spending and slightly better control.
- Pluto cards (used for all business sizes) can provide unlimited virtual cards and give you access to an all-in-one expense management platform.
Does a corporate credit card affect my credit score?
A corporate card is a company's liability and does not affect your credit score, and you will not see them on your personal credit report. Pluto cards do not affect your credit score in any way (as they do not provide loans or credit facilities).
What is the difference between a business and a corporate credit card?
The main difference between small business credit cards is the size of the company that uses them, followed by credit limits and available control features. Pluto provides cards to corporations and businesses through the all-in-one spend management platform.
What is meant by a corporate credit card?
A corporate credit card refers to a card provided by the company to the employee for various business-related expenses.
Is a corporate card the same as a credit card?
Credit cards primarily draw from an approved loan balance, while corporate card programs are just an extension to a dedicated corporate account. But the terms are used interchangeably nowadays.
What is the difference between corporate and domestic credit cards?
A domestic card may refer to a debit card or a card issued by your local bank for your local use. Corporate cards are accepted internationally, at the ATM, or online.
Can a corporate card be used for personal use?
No. By default, corporate cards have to be used for business expenses, which are reported into accounting, but most importantly, it is the company's money on that card. The only exception will be if your company allows it.
What is the advantage of a corporate credit card?
Usually, it comes down to higher spending limiting. Compared to small business credit cards, corporate credit card debt does not usually require a personal guarantee, as the company guarantees it.
In the case of Pluto's corporate card, we can also add - unlimited virtual cards, real-time team-wide spend control, instantaneous reporting, and no FX fees!
Does a corporate credit card affect my credit score?
No. If the corporate credit card has a credit facility attached to it (it usually does), it is a company liability, not a personal liability. You are given access to a portion of their credit facility that does not fall into the personal loans group, and you do not need to provide personal guarantees.
Can my company require me to put business travel on my own credit card?
No, the company cannot force you to put business expenses on your credit card, but it is sometimes easier for everyone. So, if you agree with that, and the company agrees to reimburse you - it is not a problem.
If you are looking for a better solution, let the Pluto team know, and we will provide you with an easy corporate card platform for your whole team.
Do corporate credit cards require a credit check?
A corporate credit card (in its classical meaning) is attached to a loan facility. To approve this loan facility, banks must do a company credit check.
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You may also be interested
How to Manage Petty Cash Effectively in 2023
Not every expense in the company requires you to issue a check. Payments like petrol, supplies, stamps, etc., are paid via cash. For these business transactions, either the employees take cash in advance or put in a request for reimbursement. This mechanism requires you to set some cash aside and employ a person for receipt management and reporting. The cash is referred to as petty cash.
What Is the Meaning of Petty Cash?
Petty cash refers to a small amount of money that businesses keep readily available for handling minor payments and expenses that are too small to be processed through regular accounting procedures. It is often kept on hand and is reimbursed periodically.
What are Petty Cash Examples?
Petty cash includes small miscellaneous expenses, such as:
- Office supplies
- Client lunch
- Medicine and first aid
- Minor repairs
What Is the Process of Petty Cash Disbursement?
The first step in petty cash disbursement is to define policies and procedures. This includes specifying:
- The purpose of the fund
- The maximum cash amount
- The types of expenses the fund can cover
- The process for replenishing the fund
The next step is to appoint a petty cash custodian. They are responsible for handling the petty cash fund.
Then, you set up the fund by transferring the initial sum of money into a safe or locker. This amount should be sufficient to cover minor expenses for a defined period.
When employees make small purchases, they request funds from the custodian. After the purchase, they return with a petty cash voucher, receipt, and cash balance.
The custodian reviews the receipts and provides reimbursement. They maintain detailed records of every transaction, including the date, purpose, recipient, amount, and a brief description of the expense. This record-keeping method ensures transparency and accountability.
After that, the custodian reconciles the petty cash fund at regular intervals. They add up the safe's cash balance and the receipts' value. The total should match the original amount in the fund.
What are the Two Types of Petty Cash?
To manage petty cash, the custodian relies on either of the petty cash book systems:
1. Imprest Petty Cash Book
An imprest petty cash system involves maintaining a fixed amount of money in the petty cash fund at all times.
For instance, you set up a fund of $100. When the fund gets down to $20, the custodian requests reimbursement and replenishes the fund to $100.
2. Columnar or Analytical Petty Cash Book
A columnar or analytical petty cash book is a detailed and structured method of recording petty cash transactions. It categorizes expenses into different general ledger codes for better tracking.
For instance, you create separate columns, such as "office supplies," "refreshments," "meals," etc. Whenever a transaction occurs, the custodian records it in the appropriate column and specifies its purpose.
What are the Challenges of Petty Cash?
While the process of petty cash seems linear and simple, it has many intricacies in practice.
Imagine the custodian getting hundreds or thousands of requests and receipts every day. So, maintaining a petty cash system is easier in a smaller business with limited expenses and reporting needs. However, for larger enterprises, relying on manual vouchers and physical safes/lockers causes a lot of chaos.
1. Vulnerability to Theft and Misuse
Unlike an automated system, a manual petty cash system lacks controls and security measures.
For example, if the custodian is not vigilant, employees can use the cash for personal expenses. Similarly, if the custodian gets stuck between multiple requests and receipts, it leads to oversight.
Moreover, the physical nature of cash in a petty cash box makes it an easier target for theft. Since there's no immediate digital record, anybody can steal money, which goes unnoticed for a while. This lack of transparency and a digital audit trail makes it difficult to identify funds misuse.
2. Poor Receipt Management
Receipts are the document of proof for the expense. With the traditional approach, custodians have to chase employees for receipts. This results in incomplete or unaccounted-for submissions.
Moreover, relying on the manual petty cash process makes it harder. The custodians have to manage countless receipts daily, making reconciliation tedious. Hence, you end up with misplaced, duplicate, or even damaged receipts.
A common example of this issue is when a custodian receives multiple receipts and with an analytical petty cash book to maintain. It takes them hours to reconcile, report, and ensure accurate categorization.
The worst is when it's time to report, and locating these receipts takes hours.
3. Chaotic Approval Workflow
In smaller companies, getting approval for expenses is easy. But, in large enterprises, even small expenses can prompt approvals from various departments and stakeholders. This makes the approval workflow complicated and time-consuming. This delays the fund release, disrupting the workflow and reimbursement process.
For example, imagine an employee who wants to buy a subscription for less than $300. In a big company, it will prompt approval from the manager, IT, finance, and legal departments.
All this back-and-forth slows things down a lot.
4. Internal Resentment
In big companies, there's tension between the finance team and other departments. This issue occurs when employees can't access the funds and have to wait for approval. Such a delay disrupts the work or delays the reimbursement.
For instance, an employee needs to buy a subscription for work. But the delay in approval impacted the deadline and client relationship. This creates problems and stress between the finance team and other departments.
5. Branch-Level Petty Cash Management
Large enterprises use separate petty cash systems for departments at the branch level. This means that each department has its own petty cash fund to manage.
Managing small amounts of cash at individual branches is tricky. Employees misuse/steal the money as there's not much oversight. There is no visibility on how money is being spent. Maintaining funds for multiple branches becomes a headache. Also, departments find it challenging to request more funds.
Reconciliation becomes challenging as the finance teams have to chase branches for complete information. This leaves a lot of loopholes for employees and branch custodians to misuse petty cash.
6. Tedious Reconciliation Process
Reconciliation ensures that the petty cash fund's balance matches the sum of all expenses.
Manually, reconciliation in large enterprises takes weeks and is prone to errors. Moreover, when adding up expenses, the process is prone to manual errors, which are hard to identify and correct.
For instance, the custodian overlooks a receipt. This mismatch between the recorded expenses and the actual cash on hand can take him weeks to spot errors.
7. Low Visibility Over Expenses
Traditional petty cash systems lack real-time data. At any given point of time, the custodian is unaware of the fund's current status. This lack of visibility delays financial decision-making. For instance, it can take weeks before the custodian realizes that the petty cash fund is running low. This can lead to temporary cash shortages for essential expenses.
The absence of a clear record makes it slower to notice problems and reconcile the cash. Moreover, transactions and expenses are recorded on paper, which leads to further errors. For example, when an employee uses petty cash to buy office supplies, there will be a delay until the expense is recorded.
Similarly, when many employees spend money simultaneously, tracking them in real-time is tough. This lack of transparency allows employees to misuse petty cash for personal expenses.
How to Manage Petty Cash Effectively With Pluto?
To overcome the challenges described previously, you can not rely on any automation tool. Instead, you need a product that is tailored to your specific needs. While many tools can assist you in digitizing petty cash management, Pluto goes the extra mile.
With Pluto, you no longer need to maintain a physical safe or countless vouchers and receipts. Pluto records every transaction in real time and gives you visibility at each step. From receipt to reimbursement, you manage everything with complete control and clarity.
Unlimited Corporate Cards
Pluto enables you to issue unlimited corporate cards, simplifying petty cash management. It eliminates the need for physical lockers or safes, promoting smoother cash flow. The availability of unlimited cards allows you to replace shared credit cards. This enables the use of cards for even small petty cash expenses.
Finance teams get full control and visibility over each petty cash expense in real time.
Employees can either swipe the cards for a seamless process or withdraw cash from ATMs. Every expense made with the corporate card triggers an approval workflow. It prompts employees to add receipts and managers to approve expenses. They can then add the receipts simply via WhatsApp and get reimbursed without any delays.
With all the data consolidated on a single platform, reconciliation becomes easier. This simplified process eliminates the need for a dedicated custodian to manage petty cash.
Not only do you get more control, but you save money with visibility at each step.
Pluto allows you to specify limits for corporate cards issued. This ensures employees stay within budget.
When the spending exceeds, employees can request more funds. The budget expands on the manager's approval in seconds, allowing for necessary spending.
Administrators can also issue zero balance cards. These cards with zero balances prompt an approval request for each expense. This approach ensures budget control without causing any delays or resentment.
Easy Receipt Management
Pluto simplifies receipt management thanks to its seamless WhatsApp integration.
Your employees can upload receipts via WhatsApp, which are recorded in real-time. The custodians no longer need to run after employees for the receipts.
However, Pluto does more than just store receipts. It extracts vital information through OCR, including vendor names, amounts, and GLs. As a result, your accounting team spends less time on manual tasks like creating logs.
Normally, getting approval for expenses can involve a lot of back and forth. But with Pluto, you can set up custom approval processes to make the process smoother.
When an employee uploads receipts, Pluto automatically starts the approval workflow. It notifies the custodian and managers to approve the expense, removing the friction.
The reimbursement process accelerates without any compromise on efficiency.
Further, Pluto uses OCR to detect duplicate receipts to avoid dual payments and fraud. This makes it easier to double-check expenses and approve the legitimate ones.
Digital Expense Report
Pluto offers digital expense reports that compile data from all the receipts.
The report simplifies the task for your finance teams to see how each branch/department is spending. It enables them to make adjustments to policies and procedures as needed.
For instance, a company has small office supply purchases spread across various departments. Pluto's real-time visibility and report help to locate these costs. As a result, finance teams can reconsider and promote bulk purchases for cost savings.
With Pluto, the custodian gets complete visibility into the expenses and the available funds at all times.
Close Books 10X Faster
Pluto simplifies the process of closing books.
Since employees can submit receipts directly through WhatsApp, custodians don’t need to chase employees for receipt submissions. This enables you to close the book 10X faster by accelerating the reconciliation process.
Pluto records all transactions in a centralized digital platform. This streamlines audit logs and eliminates the need to maintain physical records.
With its OCR-based receipt retrieval, finding specific receipts and information becomes more effortless. This simplifies the reconciliation process, making the entire book-closing process faster.
Replace Petty Cash With Corporate Cards
Small expenses and cash transactions can not be removed. However, finding an expense management tool can make petty cash management simpler.
Stop relying on manual traditional processes to manage petty cash. Choose Pluto to replace your tedious petty cash books and vouchers with corporate cards.
Sign up today to digitize your petty cash for complete visibility and control.
How IT & Procurement Teams Should Evaluate Spend Management Products
In today's fast-paced business world, managing expenses can be a daunting task for IT and procurement teams.
To help you out, we compiled a list of features and functionalities that you should consider when picking your spend management platform.
Spoiler alert, Pluto has them all.
PCI DSS Level 1 Provider
One of the essential features that should be given high importance is the product's PCI DSS Level 1 compliance.
The Payment Card Industry Data Security Standard (PCI DSS) is a set of guidelines and security requirements designed to safeguard payment card data.
The standard was developed by major credit card companies, including Visa, Mastercard, American Express, Discover, and JCB, to ensure that all companies that handle payment card data maintain a secure environment. PCI DSS compliance helps to prevent fraud and data breaches, protecting both the company and its customers.
PCI DSS Level 1 is the highest level of certification a company can achieve for PCI compliance.
It requires companies to undergo a rigorous independent audit to ensure compliance with all 12 of the PCI DSS requirements, including network security, access control, and vulnerability management.
Achieving PCI DSS Level 1 certification demonstrates that a company has a comprehensive and effective security program in place to protect payment card data.
When evaluating corporate spend management products, IT and procurement teams should look for products that have achieved PCI DSS Level 1 compliance to ensure that the product meets the highest security standards.
This will help to ensure that the company's payment card data is adequately protected and that the company is meeting its compliance obligations. By prioritizing PCI DSS Level 1 compliance, IT and procurement teams can help to safeguard their company's reputation and financial well-being.
Being PCI DSS Level 1 compliant is essential for any organization that handles corporate card information, as it provides a high level of security and assurance that the organization is taking all necessary measures to protect its customers’ data.
Pluto Card is proud to be PCI DSS Level 1 compliant. This means that our customers can trust that we have taken all necessary measures to secure their data and protect it from unauthorized access.
We also partner with vendors who are held to the highest security standards, such as PCI or SOC2 compliance.
Passwordless login is a secure and convenient way for users to access their accounts without the need for a password. It is an effective way to protect against unwanted access to your account, as passwords can be easily compromised or stolen. By tying your Pluto access with a company email account provided by your organization ensures that when your employees lose access to their company email address they also lose access to Pluto.
At Pluto Card, we understand the importance of passwordless login, and we offer this feature to our customers. With our passwordless login feature, our customers can access their accounts quickly and securely, without the need for a password.
Activity Log And Audit Trails
Activity logs and audit trails are crucial for ensuring strict auditing everywhere. An activity log records all user activity within an application or system, while an audit trail provides a record of all changes made to data within the system.
Pluto Card offers a 7-year audit log, which means that our customers can track critical changes made to their data over a seven-year period.
Employees that are using our platform have only as much access as they need, and we have infrastructure redundancy built into Pluto, which means that all compute and data is run in multiple geographies.
Business continuity is paramount at Pluto - to this end, we ensure data redundancy with redundant backups in multiple geographies as well.
In addition, at Pluto, your application data is always encrypted in transit, and at rest.
Continuous Security Scans
Pluto also provides a continuous security scan, which tackles multiple dimensions, including code or dependency vulnerabilities, infrastructure, and public endpoint scans.
Our customers can be assured that we take security very seriously and are always on the lookout for any potential security threats.
In the event of a security incident, we have an immediate incident response plan in place and will notify impacted customers without undue delay of any unauthorized disclosure of customer data.
24x7 Customer Support and Dedicated Account Manager
In addition to these security features, Pluto Card also provides 24x7 customer support.
We understand that our customers need support around the clock, and we are always available to help with any questions or issues that may arise.
Data Infrastructure, Redundancy and E2E Encryption
We also provide infrastructure and data redundancy, which means that our customers’ data is highly available and secure, even in the event of a system failure or outage.
Data is always encrypted in transit, which means that it is always protected during transmission between servers or devices.
Finally, another crucial feature that IT and procurement teams should consider when evaluating corporate spend management products is data residency and retention policies.
Pluto Card offers an audit trail for changes to customer data, so we can track who did what.
Additionally, we have a data residency promise of 7 years, which means that we retain customer data for that period of time.
This can be important for compliance with regulatory requirements, such as tax or financial reporting.
In conclusion, when evaluating corporate spend management products for your enterprise, it’s essential to consider the security features that the product offers.
PCI DSS Level 1 Compliance, passwordless login, activity logs and audit trails, and data residency and retention policies are all critical features that can help ensure the security and integrity of your organization’s financial data.
Pluto Card offers all of these features, along with 24x7 customer support and infrastructure and data redundancy, making it an excellent choice for organizations looking for a secure and reliable corporate spend management solution.
For more information visit plutocard.io and book a demo.
Top 9 Procure-to-Pay Software for Enterprises
You want a procure-to-pay (P2P) software that automates your procurement process and addresses issues like lack of visibility, double payments, and delayed approvals. However, since such a tool has multiple users at different hierarchies and a complex workflow, you often end up with a more complex process if you don’t choose the right software.
With ad-hoc processes, many issues pop-up: employees wait weeks for approvals, procurement teams have no real-time visibility over purchase requests and don’t know how to prioritize, finance teams get minimal control over expenses, and the entire process is chaotic. Hence, choosing the right procure-to-pay solution requires a focus on ease of use and flexibility.
In this post, we will share the best procure-to-pay software for businesses in the UAE. We will discuss how P2P software helps with procurement and which tools are worth considering.
What is Procure-to-Pay Software?
Procure-to-pay software is a tool to automate the complete procurement process, which combines accounts payable (AP) and procurement software.
Instead of having your procurement processes and data scattered across emails, Jira, different task management tools, and custom ERPs, you bring it onto a single platform.
By moving from your legacy tools to an automated P2P software, you can:
- automate approval workflows, making the purchase request (PR) process easier and faster. Flexible approval workflows enable all stakeholders to approve requests with a trigger-based flow.
- integrate with ERPs to maintain a preferred vendor list and manage order items. While most P2P software supports record-keeping only, some allow the conversion of PRs to purchase orders (PO) automatically after approval.
- match the goods received note (GRN) to enable two-way or three-way matching and ensure proper inventory and timely vendor payments.
- process payments with multiple payment options to avoid delays and foster vendor relationships. It also helps avoid double payments, underpayment, or overpayment.
- reconcile data faster via integrations with accounting software, enabling more visibility and control. Accounting teams get the right documents, and finance teams get visibility over expenses.
Since legacy ERPs aren’t enough to manage your entire procurement process, adding P2P software makes purchasing and payments easier.
Top 9 Procure-to-Pay Software
Here is a procure-to-pay software list for companies in the UAE:
Pluto is an all-in-one procure-to-pay solution to transform your procurement and AP processes. It sits on top of your ERP as a layer to manage the multiple stages of the procurement process. From automating PRs to setting multi-layer approval workflows and managing vendors, it is the ultimate solution to transform a chaotic procurement process into a faster and more efficient one.
- Features fully customizable workflows for raising PR and POs, requiring no technical expertise
- Offers a flexible approval engine capable of managing intricate hierarchies
- Enables multi-layer invoice approvals with policies to align with your company's structure
- Ability to upload invoices easily via WhatsApp images, eliminating the need to search for invoice details. Also facilitates invoice capture via emails directly to speed up the receipt capture process
- A centralized dashboard to gather bills in one place and track the status to avoid double payments
- Vendor-specific corporate cards to control budgets and detect irrelevant expenses
- Supports local and international wire transfers to make payments
- OCR technology minimizes manual data entry by creating and populating bills from invoices
- Supports ERP integration to synchronize your vendors, POs, and bills and integrates with accounting software, such as Oracle, NetSuite, Zoho, Quickbooks, Wafeq, Xero, etc.
- Integrates with payment gateways and accounting software for seamless payments and reconciliation (a feature not available in other solutions)
- Raises alerts for upcoming payments and enables scheduling payments in advance and automate invoices
- Provides a complete audit trail of the process to ensure visibility at each step
- Shows real-time analytics to facilitate deep insights for supporting budget control
- More financial control with vendor-specific corporate cards
- Better Forex rates than most local banks
- Multiple integration options including Netsuite, Dynamics and more
- Slightly longer on-boarding due to unlimited corporate purchasing card offering
- Directly integrates with all other major ERPs except Tally
Order.co is a procure-to-pay platform that provides you access to over 15,000+ vendors in addition to your preferred vendors. It acts as an online marketplace like Amazon or eBay to help you procure items for your business. You add items to the cart, and it enables a rule-based approval system for POs with complete control and visibility.
- Provides a custom, pre-approved Order.co catalog, including your current vendors and a vast network of 15,000+ vendors
- Supports purchases from multiple vendors regardless of their ordering methods (API, website, email)
- Sources the best prices for your needs to automatically generate POs and set up recurring orders to save time and reduce manual errors
- Offers real-time budgeting and reporting insights by the user, location, cost center, or vendor
- Simplifies payment processing by consolidating all orders from multiple vendors into one monthly invoice
Dependent upon locations and usage; contact firstname.lastname@example.org for pricing information
- Customizable product lists for ordering
- Easy-to-create customizable workflows
- Ability to categorize purchases and run reports
- Set up is confusing and requires customer support help
- Can not order from multiple vendors at the same time
Yooz optimizes the procurement process by focusing on invoice management. It is suitable for mid-size companies of all sectors wanting to automate procurement with a cloud-based procure-to-pay solution. It uses artificial intelligence (AI) and machine learning (ML) technologies to enhance security and control in AP automation.
- Enables online, real-time management of supplier relationships, improving communication and collaboration
- Provides mobile access for invoice approval and communication
- Maintains regulation-compliant traceability, ensuring adherence to relevant laws and standards
- Automates real-time general ledger (GL) coding and PO matching
- Captures all types of documents through various channels, such as email, drag and drop, mobile, scan, and secure file transfer protocol (SFTP)
- Integrates with accounting software and ERPs
- Allows users to approve and pay invoices in batches, offering multiple payment options, such as virtual credit card, ACH, e-check, and paper check
- Offers a range of services, including consulting, configuration, training, and user support
Free trial for up to 15 days followed by a "pay-as-you-use" model. Also offers “gold edition” subscription pricing (based on the volume of documents) for an unlimited number of users and 4 hours of complimentary service
- Integrates with Sage Intacct
- Ability to tag people in the comments and email them directly from the invoice
- Numerous criteria available for setting up the approval workflows
- Doesn’t offer payment services in the UAE, so you need to carry out payments on a different platform
- Doesn't have integrations with major vendors as a form of punchout
- Time-consuming to download and export files
- Hard for vendors to send the invoices through Yooz
Kissflow simplifies and enhances procurement processes while ensuring transparency and compliance. It helps users automate the entire process without requiring technical expertise or coding experience. It comes with 50+ ready-to-use applications, enabling unlimited automation applications.
- Offers fluid forms to enable easy capturing, approval, and tracking of PRs
- Allows users to register and maintain vendors with access to multilingual catalogs
- Integration with accounting systems, ERPs, and finance systems like Quickbooks, SAP, and Microsoft Dynamics
- Accelerates the invoice approval process with timely alerts and automated checks. Connect invoices to contracts, POs, and service entry sheets in a single dashboard
- Customizable reports to visualize data using charts, filters, and heatmaps
- Ability to define and manage budget restrictions with dynamic rules throughout the entire procure-to-pay lifecycle
- Customized approval workflows to ensure transparency with rule-based approval processes
- Smart alerts that provide real-time updates on the status of POs and invoices to keep stakeholders informed
Starts at $2499/month (billed annually). Pricing varies based on transaction volume and number of users
- Intuitive interface with a relatively short learning curve
- Does not support payment flows in the UAE
- Cost of its license is high (particularly for SMBs)
- Can not handle intricate processes that require a high degree of customization or involve multiple conditional branches
- Customization options are limited, including specific integrations, advanced business rules, or more sophisticated automation capabilities
Coupa is a cloud-based automation platform to manage procurement processes. It facilitates supply chain optimization by providing visibility and control. It brings consumer shopping ease to the procurement process. With a focus on user adoption, it provides an intuitive shopping experience for employees, making it easier to adhere to pre-approved spending guidelines.
- Simplifies procurement by allowing organizations to track pre-approved spending and get real-time visibility into POs and order lifecycle
- Maximizes pre-approved spend to offer complete visibility over the purchase-to-pay processes
- Promotes user adoption at all levels with an easy-to-use interface, creating value for both employees and vendors
- Provides a centralized platform within Coupa Procure, allowing easy comparison of items across multiple vendors
- Offers real-time budget management with budget meters, allowing organizations to assess budget sufficiency before committing to spending
- Employs AI and machine learning to detect errors and fraud across business spend
- Enables quick notifications of disruptions and allows vendors to confirm availability, minimizing unplanned downtime
- Provides real-time visibility into inventory availability, helping organizations reduce redundant and wasteful spending
- Several categories and filters in the analytics section to streamline data
- Chat option enables approver and claimant to discuss issues with receipts
- Enables setting up of customized approval chains and including additional new approvers
- Lots of unnecessary notifications, making it difficult to select the ones that need action or comment
- Low receipt searchability, making retrieval time-consuming
- Inconsistent syncing of remit-to address from NetSuite
- Complex to implement and not intuitive, forcing admins to spend more time resolving employees' queries
- Slow customer service
Esker is a cloud-based automation procurement software. It helps you optimize procurement processes and collaborate strategically with your vendors. With the ability to integrate across various company departments, it simplifies user adoption while facilitating visibility and control.
- Facilitates approval mechanism and GRN matching for each PR and invoice
- Offers real-time analytics, enabling you to maintain tighter budget controls
- Gives access to products from preferred vendors, aligning purchases with company procurement policies
- Provides a self-service portal, facilitating supplier onboarding, catalog management, and invoice status access
- Customizable dashboards to manage daily tasks, monitor productivity, and identify issues and opportunities as they arise
- Enables you to customize the interface with your company's corporate identity, enhancing the supplier's ability to identify and engage with your organization seamlessly
Contact sales for pricing
- Contains filtered views to allow for focused priorities
- Auto-sends payment reminders
- Gets expensive with each customization implemented
- Doesn’t allow unused/old customer accounts to be deleted
- Integration with accounting software isn't seamless
- Approval workflow requires a manual trigger to start
PayEm offers a procure-to-pay solution, covering everything in one place to replace your traditional procurement process. With a core focus on processing PR, it simplifies the creation of POs with custom forms and approval workflows. It facilitates collaboration between procurement and finance teams to enhance visibility and control.
- Offers custom request forms equipped with conditional logic to ensure a user-friendly experience
- Provides fully customizable automated approval workflows based on factors like amounts, subsidiaries, and stakeholders
- Integrates with communication platforms like Slack and email, allowing request tracking and approvals
- Consolidates all the requests and approvals, simplifying discussions, document sharing, and creating an audit log
- Enables real-time updates and clear overviews of request statuses, minimizing the need for follow-up inquiries
- Offers OCR technology for invoice processing
- Syncs with your ERP and enables exporting reconciled transactions and uploading them to your ERP
- Automates vendor management with payment scheduling, funds transferring, and limits setting for each vendor
- Multiple virtual credit cards for different vendors
- Supports global transactions
- Some vendors don't accept PayEm cards
- High transaction clearing time
- Limits the user to either a virtual or physical card at one time
Pipefy is an automation procure-to-pay tool to manage end-to-end procurement processes, from PR to paying vendors, to create a frictionless experience. It aims to break silos between teams to simplify purchase and AP.
- Allows you to create and customize workflows, from purchase requisition to supplier management
- Provides secure portals where records and documents can be organized, ensuring that all information is easily accessible, especially during audits
- Ensures compliance with custom forms that include required fields to accelerate POs
- Enables access to real-time insights to help you forecast ideal quantities and vendors for requisitions
- Evaluates your processes, delivering reliable data to enable strategic and data-driven decisions
- Integrates with your existing ERPs and accounting systems, such as NetSuite, Oracle E-business Suite, QuickBooks, Sage Intacct, etc.
- Enables deadline alerts, approval flows, and information exchange to prevent late fees and cashing in on early payment discounts
- Offers a customizable dashboard to streamline vendor registration, updates, onboarding, and contract management
Offers three packages starting with a free option for smaller teams, and a subsequent model that costs $20 per month per user and $34 per month per user. Also, offers an enterprise plan with custom pricing
- Offers templates for organizing processes
- Complex sign-up process
- Workflows aren’t flexible with difficulty with respect to adding new users and making changes
- Difficult to import data and search in the database for information
Procurify speeds up the procurement process, enhances internal communication, and reduces financial risks. It is an easy-to-implement tool that saves time for finance and operations teams. From catalog management to custom user controls, it helps to track the procurement process in real time.
- Tailors POs to match your internal processes and vendor expectations
- Creates, tracks, and maintains an audit trail of all procurement transactions for transparency and compliance
- Enhances financial controls by enabling PO-based purchasing
- Ensures that requested items are approved against budgets before procurement
- Syncs PO with your accounting system or ERP, whether via API, CSV, flat file, or direct integration
- Integrates with trusted vendors through punchout catalogs to streamline the ordering process
- Enables blanket PO, which involve making multiple purchases against a single PO, even when details of future purchases may be unknown
- Provides PO workflows to save on shipping costs, unlock vendor discounts, and reduce paperwork
Starts at $2000/month with a custom pricing tier
- Easy-to-make amendments in the original PO
- Enables ordering from multiple websites for resources, including Amazon
- Makes it easy to upload documents to support expense and order reports
- Doesn’t offer payment services in UAE, so you will need to carry out payments on a different platform
- Doesn’t cater to the UAE market, and does not support UAE-specific workflows such as VAT management
- Cannot edit orders once they are approved
- Cannot see the order history for a catalog item without running a report
- Physical inventory has to be tracked outside Procurify
Which Procure-to-Pay Software Should You Pick?
Don’t choose a platform that offers the maximum functionality. Instead, choose the one that is user-friendly and flexible.
Procurement is already a complex process that requires visibility by different stakeholders. Choosing a tool that offers visibility and accommodates complex business needs will help you transform your chaotic procure-to-pay process.
If you want to get started, book a demo, and our team will help you identify the bottlenecks and make the entire process simpler and manageable.
Disclaimer: The comparisons and rankings of procure to pay software competitors in this article are based primarily on reviews found online. While we strive to provide accurate and up-to-date information, these reviews are subjective and reflect the opinions of the users who posted them. The information presented is intended for general informational purposes and should not be considered as a definitive guide for choosing a software provider. We encourage readers to conduct their own research and consider their specific needs before making a decision.
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