PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Partnerships Continue to Heat up in the B2B Payments Arena

Steve Murphy by Steve Murphy
May 21, 2019
in Analysts Coverage, B2B
0
Corporate Spending Innovations Renews Partnership with Advantage Software

Corporate Spending Innovations Renews Partnership with Advantage Software

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Although one can be forgiven for not exactly buying into the rather sensational headline of this posting appearing in Forbes, which contains the word ‘revolutionizes’, and almost nothing is revolutionary in the B2B space, it is actually an interesting partnership announcement between Amex and SAP Ariba, one of the largest B2B networks (if not the largest).  We have been keeping members and readers informed about the ongoing frenzy of activity in the B2B payments space (which is more or less a proxy for other commercial payments as well, such as B2G and B2C in some cases), so this is no surprise and more like it will be following we are sure.

‘The multi-year partnership that will fully embed American Express payment capabilities into the Ariba Network was one of the biggest announcements at the recent SAP Ariba Live event. During the keynote, E-Bai Koo, executive vice president, global commercial services at American Express, outlined the benefits of the virtual card payment solution for buyers and sellers that rely on the Ariba Network to purchase goods and services with their American Express cards.’  

At this point most readers are aware of the strategic importance that the branded networks (and many payments industry participants) have placed in the B2B space. As we have seen (and will continue to see), both of the four party schemes are moving into expanded products and services for B2B payments delivery, adding to the traditional cards-based approach. Amex has also been adding non-card capabilities. However, there remains substantial upside for the virtual card product category as it pertains to the corporate cash cycle.  So this announcement targets that portion of B2B network activity.

One of the competitive disadvantages for Amex versus wholesale banks is the lack of transaction accounts, therefore more difficult to extend corporate relationships for Amex products through the key constituency of CFO/Treasury.  The Ariba network partnership provides direct access to both corporate procurement departments, as well as supplier receivables areas, so basically a side door into CFO by virtue of key cash cycle services. We expect that this setup will be straight-through (BIP), which is more advantageous to suppliers and could allow for reduced acceptance costs (a key friction point as always).

‘Saksena acknowledged that while electronic payments promise to bring cost-savings and efficiency to companies, widespread use is far below expectations. Part of the problem is siloed financial and ERP systems from mergers and acquisitions. Also, there can be resistance to cloud-based computing fueled by security fears. Even so, every company is on its own transformation journey exploring how payments are made, improvements in cash flow, and automating card payments to save time. She and Koo saw virtual, secure payment cards uniting buyers and suppliers for process efficiencies.’ 

We’ll keep you posted as the B2B space marches on into 4IR.

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

Tags: American ExpressB2B
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    January 22, 2021
    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    January 21, 2021
    Building C-Store Customer Loyalty Programs With Relevant Rewards

    Building C-Store Customer Loyalty Programs With Relevant Rewards

    January 20, 2021
    How PayPal Achieves High Authorization Rates

    How PayPal Achieves High Authorization Rates

    January 19, 2021
    Explaining the Bill Payment Ecosystem

    Explaining the Bill Payment Ecosystem

    January 15, 2021
    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    January 14, 2021
    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    January 13, 2021
    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    January 11, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result
    ×

    Login

    Forgotten Password?

    Lost your password?
    | Back to Login

      Subscribe!

      Thank you for visiting PaymentsJournal! Please subscribe to our newsletter to receive consumer data insights and daily analysis from Mercator analysts and industry experts.

      ×

      How will COVID-19 Effect the Payments Industry?

      Check out our latest:

      – Consumer Data – Complimentary Reports
      – Podcasts – Mercator Analyst Commentary
      – Industry Opinions

      ×

      WEBINAR:
      How Digital Acceleration Will Affect Payment Industry

      Please join us for this panel discussion on addressing the challenges to pave the way to payments innovation and profitability and gain insights on the key trends and challenges impacting the payments landscape in North America.

      REGISTER