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The AFP’s report was released the same week a range of new electronic B2B payment tools were announced, the latest in a deluge of digital payment solutions emerging in recent years. 11), Mastercard announced a collaboration with blockchain company R3 to create a blockchain-based tool for cross-border B2B payments.
The Federal Reserve is pushing for adoption of the ISO 20022 global payments messaging standard, a move industry analysts say could streamline B2B payments, especially cross-border. Banks could do all sorts of transactions for you, but they charge you for that and rightly so.”
Between omnichannel procurement, multi-rail payment tools and cross-border trade, treasury management systems (TMS) seem like an obvious necessity for modern conglomerates. Nearly half of the companies surveyed by the Association for Financial Professionals (AFP) and Bloomberg aren’t using a treasury management system.
“The IRS is ready to deal with direct deposit if you have a regular bank account, and they are ready to deal with paper checks, [but] they are not used to dealing with [more] payment methods on a widespread scale,” said Linda Jun , senior policy counsel for the AFP. “I Mastering Multichannel Commerce Playbook.
According to new research from the Association for Financial Professionals (AFP), private companies are more reliant on banks than other types of businesses, and the bank-corporate relationship is essential for corporate treasurers when deciding where to place company cash.
That friction sends uncertainty rippling down supply chains, even as companies strive to solidify relationships and gain trust with unfamiliar cross-border trading partners beckoning with new markets. Close to one-quarter of AP pros surveyed also want to bring ePayables and virtual cards online for treasury operations.
. “While adoption for consumer accounts is enhanced through regulatory drivers, adoption for business accounts is based on market interest,” she stated in her presentation at the Association for Financial Professionals’ AFP 2019 event. Open Banking Targets Corporates.
Business-to-business (B2B) trade, especially when deals occur across borders, expose businesses to all sorts of risks, like non-payment (on the supplier’s side), or non-deliver (on the buyer’s side). Most suppliers (57 percent) also said their current strategy to mitigate non-payment risk limits their ability to grow across borders.
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