We’re sitting down with Kofi Ndaikate, a respected voice in the dynamic world of FinTech whose expertise spans from blockchain and cryptocurrency to the intricate details of regulation and policy. Today, we’re diving into the critical intersection of B2B payments and security. We’ll explore how his company uniquely connects accounts payable and receivable, discuss the significant fraud risks associated with traditional payment methods, and uncover how technologies like virtual cards and AI are creating a more secure and efficient financial landscape.
Your company operates as a unique bridge between accounts payable and accounts receivable. How does this position help streamline B2B payments for your clients, and could you provide a step-by-step example of how you automate a typical transaction in your network?
It’s a great question because our position is truly unique. Most fintechs focus on one side of the equation—either automating accounts payable (AP) or accounts receivable (AR). We see ourselves as the connective tissue between them. We are integrated with every large bank and all the major payment networks, allowing us to serve as a central hub. For example, when a buyer in our network, which includes over half of the Fortune 100, needs to pay a supplier, we automate the entire process. Instead of someone manually processing an invoice and keying in payment details, our system handles the acceptance of the B2B payment, ensuring a seamless and streamlined flow from AP to AR without the typical friction points.
Given that fraud on checks and corporate travel cards is reportedly very high, what specific vulnerabilities make those payment methods so risky? Can you share an anecdote or a key metric that illustrates the security difference you have observed in practice?
From my direct experience, the vulnerabilities are glaring and costly. Check fraud is simply off the charts. A physical check is a document full of sensitive information that can be easily stolen, altered, or duplicated. Corporate travel cards are also a huge target; they are used repeatedly at various locations, creating a wide surface area for a potential breach. A single compromised point-of-sale terminal can expose the card number to bad actors. The contrast with what we see is stark. In our automated system for virtual cards, we had no fraud. That’s a powerful testament to the security difference. The risk shifts from an open, ongoing vulnerability to a tightly controlled, single-use event.
Virtual cards can be issued for a specific amount, like $137 for a single payment. Beyond this exact dollar value, what other embedded controls are used, and how do they work together to prevent unauthorized charges? Please walk me through a specific scenario.
The exact dollar value is just the first layer of a much deeper security onion. When we issue a one-off card for a specific payment, say for that $137 invoice, we embed multiple controls. Imagine a supplier tries to run that card for a different amount, perhaps a fraudulent charge of $1,000. The transaction will be instantly declined because of the exact amount control. But we add more controls on top of that. For example, the card might only be usable with a specific merchant ID or within a certain time frame. This multi-layered approach creates a digital fortress around each transaction, making it incredibly difficult for bad actors to exploit, even if they were to somehow intercept the card details.
Your process significantly reduces human interaction by using AI for validation. Could you explain the step-by-step process of how your AI “checks” a transaction and what specific types of errors or potential fraud it is designed to catch before a payment is processed?
Our use of AI is all about creating a robust, automated checker that eliminates the risks associated with manual processes. Traditionally, a virtual card payment might arrive in someone’s email inbox, creating opportunities for human error or for a bad actor to hack the email and intercept the details. Our system bypasses that entirely. The AI-powered process will automatically parse virtual card emails or even log into supplier portals to capture the card details securely. It then validates this information against the expected transaction data. This “check” is designed to catch discrepancies in amounts, recipient details, and other parameters, ensuring everything is correct before processing. It effectively removes the human element, which is often the weakest link in the security chain.
What is your forecast for the adoption of virtual cards in the B2B space over the next five years?
The momentum is undeniable, and I only see it accelerating. We are already seeing very strong year-over-year growth that significantly outpaces the industry as a whole. Even looking at the broader market, the industry average for virtual card adoption is already seeing double-digit growth annually. As more businesses experience the profound security and efficiency benefits firsthand, the shift away from riskier, traditional payment methods like checks will become a strategic imperative. In five years, I expect virtual cards to be a standard, rather than an alternative, for secure B2B transactions.
