The Power of Dynamic Authorization for Spend Management Platforms

By Sammy Chan, VP & Head of Card Issuing, Nium

Spend Management platforms have emerged as indispensable tools for modern finance teams seeking enhanced control and visibility over their expenditures. An effective spend management solution makes it easier to deal with the high volume of administration and analysis that goes hand-in-hand with increased company spending — everything from procurement, purchasing, invoicing, vendor management, expense management, and real-time reporting.  

Gone are the days when such tools were only accessible to large corporations. The industry has undergone a transformative shift, with a projected compound annual growth rate (CAGR) of 11.1% from 2022 to 20291, fueling growth of many fast-growing companies. A wealth of data supports the tangible benefits these platforms provide, showcasing that companies leveraging spend management services typically save 6% to 12%2 overall, even after accounting for fees, becoming more efficient organizations.  

Central to the functionality of Spend Management platforms is modern card issuing. As a technology partner, we work with businesses to create and manage virtual and physical cards globally for travel expenses, employee benefits, and corporate spending. A unique difference we provide is the flexibility to set custom authorization logic.

Traditional card authorization methods often come with limitations that restrict the flexibility and granular control required for effective expense management, particularly for entities without a financial license.

That's where Dynamic Authorization comes in. As part of Nium’s modern card issuing product, Dynamic Authorization encompasses a suite of API-powered authorization models, offering unmatched flexibility and control, real-time visibility and reporting, and advanced fraud management capabilities.

• Authorization rules and controls: We allow clients to set customized authorization rules and controls, such as spending limits, merchant categories, and geographic locations. These rules define when a transaction should be approved or declined. 

• Real-time visibility and reporting: We provide real-time visibility into payment activities, transaction data, spending patterns, and analytics. This helps you make better financial decisions and manage expenses more efficiently. 

• Fraud management capabilities: We incorporate advanced fraud management capabilities, including real-time monitoring, pattern analysis, and transaction verification. This helps detect and prevent fraudulent activities, safeguarding you from potential financial losses.