Barclaycard has inked a landmark agreement with SAP that will make its “virtual card” offering Precisionpay compatible with SAP Ariba – the world’s largest B2B marketplace for businesses; a major step forward for they payments offering.
The system, in short, allows invoices to be automatically created and payments made using an API-based infrastructure that calls up a virtual card for payment every time an order is placed via ERP software.
The aim is to boost supplier payment speed and efficiency, while reducing fraud. The integration, to become available later this year, will bring procurement and payment together in one place, Ariba Network, giving users a “seamless” end-to-end procurement experience, Barclays said.
(SAP Ariba connects millions of suppliers across direct and indirect expense categories.)
Barclaycard offers a range of Precisionpay lines. The first product to launch within Ariba Network will be “Precisionpay Bank Transfer” it said.
This, Barclaycard claims, combines the ease of use of card payments for buyers with the cost-effectiveness of bank transfers for suppliers.
“With Precisionpay Bank Transfer, buyers will be able to pay suppliers much earlier in the procurement cycle, improving supplier relationships and allowing them to take advantage of any prompt payment discounts,” Barclaycard said, announcing the agreement today.
“Buyers could also benefit from access to flexible working capital. Instead of having to pay the supplier directly, Barclaycard could fund the payment, and then the buyer would typically have up to 56 days to pay the balance. From the supplier’s perspective, prompt payment improves cash flow, making the business more resilient.”
“In addition, customers of SAP Ariba solutions who use Precisionpay will benefit from access to data-led procurement insights powered by the powerful cloud solutions from SAP: SAP Cloud Platform and the SAP Analytics Cloud solution. These insights will help users make smarter payment and procurement decisions.”
Jens Amail, Managing Director, SAP UK&I, commented: “Barclaycard is a long-term strategic partner for SAP and we’re now taking this partnership to the next level by collectively redefining the corporate payments market with a highly innovative platform. The introduction of early settlement flexibility will truly revolutionise the industry and bring so much more value to Barclaycard customers.”
The overall aim to upend the often sclerotic process in organisations of paying suppliers, which can entail uploading invoices into an ERP system, a clunky approvals, manual checks and workarounds, etc.
This article is from the CBROnline archive: some formatting and images may not be present.
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