Financial technology is disrupting how we send and receive payments the world over. Instead of enduring high processing costs, payment delays, or limited transaction visibility – three of the seven key payments challenges Deloitte says enterprises face – organizations will stop settling for traditional financial institutions and take direct control.
As a financial tech platform, Alviere provides a different option: A B2B Payments Ecosystem. This solution brings together all parties an enterprise works with, suppliers, vendors, employees, B2B clients, or consumers (B2C), in a single payments ecosystem. All payments to and from the enterprise are managed on one digital ledger giving enterprises more control over money movement. The result is greater flexibility over how business, client, and vendor needs are met, rather than yielding to the constraints of legacy banking institutions and payments providers.
If you’re wondering what a B2B Payments Ecosystem looks like in practice, here are three real-world examples:
Pharmaceutical distribution
Challenge
Operating at scale, distributors process a vast number of payments across a network of large and small retail pharmacies. Distributors want to reduce bank transaction costs across a range of accounts, lending, and credit services offered to its network of pharmacies.
How a B2B Payments Ecosystem helps
As client and supplier accounts are managed through a single ledger, the flow of funds is accelerated and optimized. Funds move from account to account vs bank to bank, reducing transaction fees and streamlining operations.
Future outlook
The company can now extend financial services beyond their supply chain, to offer valuable credit facilities and incentive programs to their customers, such as debit cards, gift cards, and loyalty rewards that drive traffic back to the retail pharmacies.
Online marketplace
Challenge
With strong competition and growing demand for products, online marketplaces want new ways to attract and retain sellers around the world. Fast, simplified payments that work across borders is one way to differentiate in the market.
How a B2B Payments Ecosystem helps
With a B2B Payments Ecosystem that supports global money movement, the online marketplace provides faster, more cost-effective payments for international sellers. The ecosystem also minimizes or eliminates the transaction fees that traditional banks require to process payments.
Future outlook
The online marketplace can offer instant access to funds for sellers and, through additional functionality, allow sellers to easily remit funds anywhere in the world.
Commercial airlines
Challenge
A highly complex supply chain, volatile input costs, and geographically disparate operations has led to significant challenges in an airline’s corporate payables and receivables processes.
How a B2B Payments Ecosystem helps
A B2B Payments Ecosystem can reduce costs, payments delays, and cross-border challenges. It also offers tighter integration with back-office systems for collections, account reconciliation, and the optimization of foreign exchange payments.
Future outlook
Predictable fees and greater control over payments translates to better understanding of the costs of doing business and a tighter grip on cash flow. Key partners and suppliers benefit from richer and more transparent transaction data, giving both sides of the transaction a clearer understanding of settlement times and transaction costs, raising satisfaction levels for all.
Enterprises ready to innovate their legacy payments infrastructure will be better positioned to lower transaction costs, accelerate settlement times, and simplify supply chain finance that benefits customers, partners, vendors, and employees. CFOs and finance leaders must prioritize finding solutions today. Building a B2B Payments Ecosystem will deliver significant operational and cost benefits now, and in years to come.
If you’re considering a new way to move money, read the recently published Enterprise finance: Trends and opportunities for B2B Payments Ecosystems from Alviere’s in-house experts. As a licensed financial institution in the United States, and not just a technology provider, Alviere is uniquely positioned to help enterprises optimize payments across borders. Connect with us to learn more.
