This release in Finance Magnates announces a partnership between Goldman Sachs and American Express to expand services within the Goldman TxB transaction banking platform. In this case, users of TxB can create American Express virtual card payments, which in turn have strong controls, ability to execute straight-through processing of payables, and provide for some working capital benefits.
‘Through the recent partnership, American Express and Goldman Sachs aim to make B2B payments easier and more efficient for large companies. “A major pain point for our large commercial card clients is managing multiple platforms and myriad time-consuming, costly, and complex processes to make, track, and reconcile thousands of payment transactions every day,” said Dean Henry, Executive Vice President of Global Commercial Services at American Express.’
Goldman moved into the cash management platform space during 2020 and is adding capabilities that will draw in more large market players. American Express benefits by finding broader distribution of one of its core commercial payments products and further penetrating the automated accounts payable flows, a key strategy for all card rails over the past several years. Having just attended a couple of remote events around corporate banking and payments, we can say that this will be a continuing priority in the post-pandemic period as well.
‘The TxB platform of Goldman Sachs is one of the most popular platforms of the financial services provider. It offers premier API-first corporate cash management, with domestic and FX payments capabilities and liquidity management products… “We developed the Goldman Sachs TxB platform to provide our clients with a modern cash management platform that is digital, nimble, easy to use, and secure – bringing a consumer-grade user experience into the world of B2B payments. We are thrilled to further this mission by working with American Express to expand our payment platform,” Hari Moorthy, Global Head of TxB at Goldman Sachs, commented.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group