In yet another collaboration between fintechs among the slew of cash cycle management software and services, we see a release in Cision PR Newswire about a strategic partnership between France-based Ivalua, known for procurement capabilities, and TransferMate, the Ireland-based payments infrastructure firm. Ivalua will be incorporating TransferMate cross-border payment capabilities into their Ivalua Pay solution.
‘Today supplier payments, especially those that facilitate global trade, follow a complex, costly, and time-consuming process that often results in late payments. With global trade volumes expected to grow by 4.7% in 2022, the financial friction that arises from such transactions weakens links in the supply chain. This partnership will simplify payment processes by offering next-day payments to any supplier, regardless of their location. With this, businesses can unlock new opportunities and innovations by finally closing the cash gap between procurement and suppliers. By paying suppliers on-time, procurement teams can use payments to build strong, reliable, and performance-driven supply chains.’
There has been an ongoing trend during the past five years for the convergence of financial processes, including procure-to-pay, which we have written about in member research. The emergence of APIs in the integration process has improved the ability and speed for creative partnership between ecosystem participants. Incorporating automated payments and faster settlement between trading partners improves supplier liquidity and smooths over the various points of friction normally found in supply chains. This friction is something that has of course been exacerbated by the pandemic. So, this would seem to be a timely announcement as the uneven global economic recovery and supply chain disruption continues.
‘Ivalua Payments enables much needed collaboration, automation, transparency, and speed to an often inefficient and costly process. By bringing Procurement and Finance together, customers will be able to trade goods and services at the best price and guarantee on-time (or early) payment in a secure, efficient, and cost-effective manner. Not only does this improve supplier liquidity and support their financial health, but it also strengthens the relationship to create robust links in the global supply chain.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group