B2B Fintech: Payments, Supply Chain Finance & E-Invoicing Guide 2016

INSIGHTS INTO THE B2B PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING MARKET

B2B Fintech Payments Supply Chain Finance amp E-Invoicing Guide 2016

Wersquod love if you shared your newfound wisdom with friends

The Guide offers invaluable market insights for professionals in the B2B payments e-invoicing and supply chain finance space

Friso Spinhoven | Senior Manager | Innopay

This guide carefully documented keeps readers informed about the latest developments and opportunities in Fintech B2B payments SCF and e-invoicing

Michiel Steeman | Co-founder | SCF Community

Contact us

EditorsMirela AmarieiTiberiu AvramDaniela CiobanuOana IfrimAnda KaniaEmil JuverdeanuSebastian LupuMadalina MocanuAndreea NitaAdriana ScrepnicMihaela Mihaila

RELEASE VERSION 10MAY 2016 COPYRIGHT copy THE PAYPERS BV ALL RIGHTS RESERVED

TEL +31 20 893 4315 FAX +31 20 658 0671MAIL EDITORTHEPAYPERSCOM

B2B Payments Supply Chain Finance amp E-Invoicing Market Guide 2016


3 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016 | INTRODUCTION

Editorrsquos letterMcKinsey started off its ldquoGlobal Payments 2015 A Healthy

Industry Confronts Disruptionrdquo report by outlining the four

potential disruptions that will alter the payments industry during

the next years First change nonbank digital entrants will

transnotform the customer experience reshaping the payments

and broader financial services landscape The pressure put on

banks caused by technology giants and innovative startups

reaches a whole new dimension And although generally

speaking startups have not been a significant threat to banks in

the past McKinsey believes things will be different this time ldquodue

to the nature of the attackers the prominence of smartphones

as a channel and rapidly evolving customer expectationsrdquo

The second change is reflected in the modernization of domestic

payments infrastructures There are approx 15 countries where

this modernization has already happened and many others plan

to do so in the near future The third trend intently looks at

digitization in transaction banking Retail banking has experienced

impressive progress in payments However the most interesting

transformation is currently happening in the B2B space as you

will discover in this Guide Finally the fourth potential disruption

comes in the form of cross-border payments inefficiencies

These in the minds of innovative companies present themselves

as great opportunities

To these four trends I would add several others that have a

tremendous impact on the overall industry for those already

exploring them For this we looked at how parties are handling

the changes (and challenges) in technology organizational

ownership regulation MampA standardization

bull Technology developing a sense of urgency towards lsquodoing

somethingrsquo with the available financial technology is essential

Fintech is already here so companies must pass the testing

phase towards implementation and solving actual problems

Fintech companies lsquoattack frictionrsquo and leverage innovative

technologies (eg mobile apps application programming

interfaces (APIs) cloud technology crypto technology artificial

intelligence and data analytics) to address convenience user

experience and functionality They also lsquoattackrsquo the limitations

that originate from traditional banking products and services

In the case of blockchain banks actively look for ways to

integrate this technology into their business Yet despite the

efforts of financial institutions to find out how much business

they can gain by adopting blockchain technology it is still not

clear if itrsquos just a(nother) hype or if it corresponds to similar

interest from corporations

Also finally banks amp corporates are starting to make use of their

data and turn that into business profit The financial services

industry is currently facing a wave of entrepreneurial disruption

disintermediation and digital innovation so how to face one

of the potentially biggest challenge ever ndash the information

management

bull Organisational challenges developing a sense of ownership

becomes top priority

Against the historically known rigid organisational structure and

hierarchy banks amp corporations are trying to break down silos

and leverage conversation across departments with the ultimate

result of having lsquoone version of the truthrsquo a lsquosingle agendarsquo a

lsquoplanrsquo More often than ever knowing who owns the final decision

of implementing a (commercial) payments solution or a financing

service emerges as top priority Questions such as ldquoHow to gain

management support for implementing certain programsrdquo

ldquoWho are the relevant stakeholders to make seamless

payments and finance a realityrdquo and ldquoWhat are their role in the

programmerdquo etc are no longer left unanswered

bull Regulation (keeping a watchful eye on regulation amp law is

also crucial but keep in mind that regulation that supports the

growth of your business is already in place

We often hear that regulation should level the playing field for

all market participants If this is really the case find out in this

report Explore the Guide for up-to-date information about

the PSD2 Prompt Payment Code Directive 201455EU for

E-invoicing and Procurement etc

bull MampA (scalecapabilitiesspeeding up innovation) In terms

of value some of the industrys largest deals during 2015

occurred in the payments segment


The industrys highest value transactions include Global

Payments announced the USD 788 million acquisition of

Heartland Payment Systems a provider of payment processing

services to merchants PayPal acquired Xoom Corporation a

digital money transfer provider Optimal Payments bought Skrill

with USD 12 billion Alibabacom acquired Paytm for USD 680

million BBVA acquired Simple for USD 118 million One of

the most interesting moves however might be MasterCardrsquos

acquisition of VocaLink 13 banks serve as shareholders

for VocaLink which have reportedly approved the deal with

MasterCard to enter into the negotiation stage several media

outlets reported This deal is projected to be worth GBP 1 billion

(roughly USD 14 billion) and would involve the UK`s largest

banks mdash Barclays HSBC Lloyds Banking Group and Royal

Bank of Scotland which collectively own 80 of VocaLink

VocaLink processed 1 billion transactions in 2015 which

amounts to half of all UK payments and also processed 90

of salaries and at least 70 of all household`s bills and state

benefits The reason why MasterCard is interested in VocaLink

is the desire to scale internationally So far MasterCard captures

only 5 of the debit card payments in the UK thus it points to a

desire to compete with Visa abroad

Furthermore in 2015 we have seen a different dynamic in the

incumbents vs fintechs war Payments amp finance service providers

banks and corporations are either investing in fintech players

acquire them partner them or build from scratch labshubs

accelerators to spur innovation (more on this later in the Guide)

bull Optimisation standardization Last but not least itrsquos time to

optimise standardise revise

There is almost a tangible feeling that lsquotime is nowrsquo for revamping

old infrastructure honing processes enhancing operations

perking up data analysis augmenting reporting etc Yoursquove

heard it before certainly but it bears repeating The time for

innovation is now But (sic) not before the industry comes to

terms (literally) regarding what supply chain finance actually

means what is meant by late payment etc

In the first part of the guide we investigate the initiatives in

the field of B2B payments supply chain finance amp e-invoicing

describing various models for digital finance as presented by key

industry players either in the form of an exclusive interview or an

elaborate article

In the second part you can find in-depth company profiles

that map out key players in the global e-invoicing and supply

chain finance space The company profiles section comes with

essential information about markets (target group specialisation

etc) proposition (processes facilitated pricing model solution

description etc) services (dynamic discounting legal compliance

tools AP AR management standards supported) etc

This Market Guide carefully created by The Paypers puts

together the most recent and relevant information in payments

amp finance The guide brings a fresh perspective about the

industry puts in focus the potential impact of the latest industry

developments and opportunities keeping the readers well

informed and always a step ahead

This guide wouldnrsquot exist without all the people who matter most

the authors our media partners and you our faithful reader We

thank you all for your continuous support This report has been

put together with the utmost care If you discover that despite

our efforts it features information that is unclear or erroneous we

very much appreciate your feedback using editorthepaypers

com email address

Mirela Amariei

Senior Editor The Paypers

5 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016 | TABLE OF CONTENT

Table of contents

37

11

1213

1517

192022

25262830

3233

3637

39

414244

Editorrsquos LetterFour Trends in B2B Payments and Financing Innovation | Mirela Amariei Senior Editor The Paypers

Thought Leadership

B2B paymentsExclusive interview with Andrew P Reid | Managing Director and Head of Cash Management Corporates EMEA Global Transaction Banking Deutsche BankBlockchain in B2B Payments | Enrico Camerinelli Senior Analyst Aite GroupThe Emerging Internet of Payments | Roger Bass Founder CEO and Principal Traxiant

BlockchainB2B Blockchain-based Payments Can it Beat the Banks | Kris Wielens Senior Consultant Orchard FinanceThe Three-Phased Transformation of Supply Chain Finance with Blockchain Technology | Gys Hough Consultant Innopay

Innovation in payments amp bankingExclusive interview with Wim Raymaekers | Head of Banking Market SWIFTExclusive interview with Markus Strauszligfeld | Head of International Cash Management Sales UniCreditMaking One-Click Finance Possible ndash Who Are the Relevant Stakeholders and How They Should Work Together | Susie West CEO and Founder sharedserviceslinkExclusive interview with Marten Nelson | VP Marketing TokenThe Future of Banking Innovation and the Fintech Startups Journey | Falguni Desai Founder amp Managing Director Future Asia Ventures

The power of data amp traceability Track and Trace of Invoices for Working Capital Optimisation | Prof Dr Michael Henke Director Enterprise Logistics Fraunhofer InstituteTurning Financial Messaging Data into Business Profit ndash The New Challenge for Financial Institutions | Andreacute Casterman Chief Marketing Officer INTIX

Commercial paymentsGaining Management Support for Your P-Card Programme | Terri Brustad Manager of Content Services NAPCPCommercial Payments under the Scrutiny of New Technology | Chris Holmes Senior Vice President KAE


Table of contents

4748

50

52

54

5758

60

63646668

70

72

89

Trade amp finance Financing International Supply Chains An Idea Whose Time Has Come | Alexander R Malaket Deputy Head of the Executive Committee ICC Banking CommissionImproving Access to Finance for SMEs with the Open RFI Project | Matthijs van Bergen Researcher SCF Windesheim amp Steven van der Hooft CEO Capital ChainsIf Supply Chain Finance is Supplier-Centric Financial Supply Chain is Customer-Centric | Magnus Lind Co-Founder The Talent ShowSupply Chain Finance Time for SMEs to Take Position | Anita Gerrits Supply Chain Finance Specialist

E-invoicingCross-border Invoicing ndash The Real Challenge for Multinational Projects | Bartłomiej Woacutejtowicz Product DevelopmentManager Comarch EDIWhy lsquoOpenness Should Be The 1 Selection Criteria for Any E-invoicing RFP Process | Jaap Jan Project ManagerSimplerinvoicing

Regulation amp lawPSD2 XS2A ndash a Step Towards Open Banking | Brendan Jones Evolution Payments ConsultingLate Payment ndash A Perspective | Matthew Davies Director of Policy and Communications Asset Based Finance AssociationThe Directive 201455EU for E-invoicing and Procurement How Public Authorities Should Respond | Charles Bryant Secretary General EESPARegulation and Growth in Alternative Finance ndash A Contradiction in the Making | Tony Duggan Founder and Director IAAF

Part 2 ndash Company profiles

Glossary

7 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016

4 Trends in B2B Payments and Financing Innovation

Mirela Amariei The Paypers

I lived to see the US electing its first black president I watched

the 2008 financial crisis crushing many dreams I witnessed the

creation of Anonymous and Wikileaks two organisations that

changed the way we the people (and the organisations) carry

ourselves online Blockchain is being built right under my curious

eye by someone whorsquos identity is virtually unknown (or is it)

I am a young business professional curiously watching how

things unfold and change my life and others forever And I have

questions Lots of them What if one day I will be able to make B2B

payments from my mobile phone enjoying the same convenience I

have in my personal life And without any fees And cross-border

Real-time would be nice too Could blockchain help Are the

incumbent players ready to respond to my needsrequirements

What do new companies offer What is the risk working with

them What can help me identify the best solution Where are the

innovations heading What are the use cases for blockchain

In the sea of options here are 4 trends that I picked up and that

will make a dent in my history and that of payments amp financing

innovation

Trend no 1 FintechOne thing I learned while working at The Paypers as an expert on

B2B payments is that I should always ask these three questions

what was what is and what will be And I first looked at the

current payments infrastructure

Intuitively modernizing the internal infrastructure and operations

to meet new payments needs unleashes new market innovations

but the reality is that they ndash both old and new infrastructure ndash will

have to co-exist for a while

But first things first ndash how does the current payments infrastructure

stack up compared to the online sectors For instance in the UK

Fintech sector EY experts believe the entire UK industry currently

generates GBP 20 bn in revenue annually The payments

infrastructure alone accounts for GBP 81 bn while the online

sector for GBP 19 bln The former is dominated by established

players (card schemes issuers processors merchant acquirers

national payment infrastructures) while the latter sees a huge

number of newbies and thus remains largely fragmented

What has changed Everything and nothing at the same time

Some established fintechs are seeking to deliver a step change

in legacy infrastructure and the need for faster payments has

visibly increased in the B2B segment yet Ardent Partners

research still points to ACH commercial cards amp wire transfers

as the fastest growing e-payment methods in 2016

Also if you look at a bankrsquos product portfolio one will discover a

range of solutions in retail private commercial investment and

transacnottion banking along with wealth and asset management

and insurance However if you look at the fintech landscape one

will discover an increasing number of service providers that focus

on improving specific parts of this traditional broad portfolio by

using innovative technology In other words fintechs build and

execute specific parts of the banking value chain better cheaper

and faster than what is currently on offer at banks Cheaper and

faster sound compelling

Investors seem to enjoy the show too Globally investment in

fintech ventures tripled from USD 4 billion in 2013 to USD 12

billion in 2014 with Europe being the fastest growing region in the

world according to a report by Accenture

How banks corporates amp payment schemes react to the inflow of new entrantsMore than 90 of bankers expect that fintech will have a

significant impact on the future landscape of banking Almost a

third believe that fintech will win an equal share or even dominate

the market

Interestingly this yearrsquos Davos event was a lot about financial

technology (compared to previous years when it was much more

about banking) and what industry experts picked up was that

when it comes to big banks and payment schemes they all

consider themselves part of fintech or driving it


ldquoBiggest Global Banks at Davos Were All Fintech Innovators

Nowrdquo -Bloomberg

The way that is unfolding is that for instance big banks started

to consolidate their position in the fintech world through heavy

investments in startups through acquisition and mergers via

opening innovation labshubs via high-profile partnerships etc

Some examples include JPMorgan Chase and Banco Santander

announced an investment in ex-banker Blythe Mastersrsquo blockchain

startup Deutsche Bank invested in PayPal and OnDeck Bank

of America has a USD 3 billion annual budget for investing in

technology and innovation a figure thats doubled since 2010

Visa has disclosed a 10 stake in the fintech unicorn Square

and alongside Nasdaq Citi and other industry players invested

USD 30 million in Chaincom a blockchain developer platform

that serves an enterprise market

Whatrsquos more all big players ndash banks payments providers card

schemes ndash poured their money into innovation labs hubs

accelerators The highlights of 2015 are as follows Visa Europe

launched Visa Europe Collab its new international innovation

hub and argued that the company is in a unique position to

help innovators develop and scale their ideas MasterCard on

the other hand has selected in February 2016 together with

Silicon Valley Bank four startups to take part in the fourth class

of CommerceInnovated a virtual accelerator designed to help

commerce startups grow their businesses The solutions that will

be built here range from mobile lending to instant authentication

and identity checks As part of the program the startups will

gain access to operational expertise from Silicon Valley Bank

MasterCard and their respective networks

Wells Fargo is committed to ldquohelp innovative entrepreneurs

overcome challenges and seize opportunitiesrdquo with investments

of up to USD 500000 through its Startup Accelerator a program

focused on startups that create solutions for financial institutions

and enterprise customers Since its inception in 2014 the

Wells Fargo Startup Accelerator has received applications from

innovative companies in 23 countries

Peeking through the corporate sector window Future Asia

Ventures talks about 116 corporate accelerators being live

worldwide Europe takes the lionrsquos share with 54 accelerators

mostly based in the UK and Germany however companies are

increasingly launching and adding more accelerators in EMEA

and Asia Pacific locations as well

No matter what the approach is the consensus is that there is

a huge need to reduce costs to align with a digital strategy not

merely upgrade the IT systems

ldquoThe state of corporate banking IT in the digital business world is

precariousrdquo ndash Gartner amp BCSG

Survey data indicates CIOs are underestimating the importance

of digital technology lack adequate staff and resources and are

mostly ignoring nonbank disrupters

Although concerned some banks do not appear to be stepping

up to the challenge A majority of bankers (54) believe that

banks are either ignoring the issue or that they ldquotalk about

disruption but are not making changesrdquo

Make no mistake banks are actively engaged in digitalization

and most firms have an IT strategy that is aligned and integrated

with an attendant technology roadmap for implementing a digital

business However although 62 of institutions reported that

they have already started deploying a digital banking roadmap

only 53 of them have not appointed an executive to define and

lead implementation This suggests several significant road bumps

are likely to appear during the digital transformation journey

Whatrsquos more if you look at the relationship between banks and

corporates things have a different shade of gray In a 2014

report from EY 63 of corporates reported product and service

innovation to be a critical part of their relationship with banks



Yet those respondents suggested that only 40 of banks

have satisfactory performance levels Moreover a more recent

report (September 2015) from Total Solutions and Innopay shows

that only 14 of corporates make use of B2B FinTech solutions

(survey among large corporates in the Netherlands) Another 70

of the corporates are following the B2B fintech market but have

not engaged yet According to the survey the two main reasons

not to engage are a lack of sufficient knowledge about and

insight into the impact of using finTech solutions and concerns

about the continuity of the finTech company Only 125 of the

questioned companies state that they do not want to jeopardise

their bank relation

Trend no 2 Cross-border payments amp B2B commerce80 of cross-border payments revenues are B2B according to

McKinsey Emerging Asian and Eastern European economies are

set to experience the greatest growth

So if the contribution of cross-border payments to total payments

revenue growth will climb from 5 in 2013-2014 to 14 in 2014-

2019 there is money to be made and fintech is the front-runner to

help remove some of the frictions

As nonbank players increasingly encroach on the traditional

cross-border turf of banksmdash moving from consumer-to-consumer

to B2B cross-border paymentsmdashthey will force many banks to

rethink their longstanding approaches to cross-border payments

ndash McKinsey

In this scenario of lsquounbundling of the full-service model of banks

into bits and piecesrsquo the market depicts new names Traxpay

Align Commerce Payoneer Transpay Ripple eeDOCS Earthport

Kontox to name only a few

Good news though major banks around the world take action

to improve the customer experience in cross-border payments

dramatically by signing up to SWIFTrsquos global payments innovation

initiative announced at the end of December 2015 The +45

participating firms include major transaction banks from Europe

Asia Pacific Africa and the Americas

The goal is to enhance cross-border transactions by leveraging

SWIFTrsquos messaging platform and global reach

Trend no 3 BlockchainBlockchain is the technology underpinning Bitcoin and one of its

biggest advantages is that it allows two parties to transact without

making use of a central authority of third party intermediaries

Oversimplifying a bit it removes huge costs and adds transparency

speed and security Ripple Ethereum Monero Lightning Network

Amiko Pay Bitfury and others act as agents of disruption in the

B2B payments world by using blockchain rails

ldquoBanks foresee benefits for corporations by virtue of the

applications running on the blockchain that will ripple down to

the banksrsquo corporate clients Consequently before launching

any blockchain-related program a bank must be very clear and

extremely convincing about what is in it for its corporate clients

- Enrico Camerinelli senior analyst at Aite Group

Other players lsquorewiringrsquo the way payments are processed through

the use of blockchain include GoCoin Blade GemPay Gazeebo

io etc as depicted by William Mougayar author of the book lsquoThe

Business Blockchainrsquo

Trend no 4 Alternative financingAccording to the lsquo2016 UK Alternative Finance Industry Reportrsquo

by Nesta and KPGM the UK online alternative finance industry

grew to GBP 32 billion ndash an 84 increase compared to the GBP

174 billion of 2014 In 2015 almost 20000 British SMEs raised

alternative finance through online channels receiving GBP 22

billion in business funding The online alternative finance industry

is pushing the needle of market growth business models public

awareness corporate partnerships institutional funding product

innovation international expansion as well as further regulatory

support and policy acceptance

Among all models peer-to-peer business lending and invoice

trading are the largest models by volume of the UK online

alternative finance market


10

Share this story

B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016

In total nearly GBP 149 billion was lent to SMEs in the UK

(a 99 year-on-year growth rate and 194 average growth rate

between 2013 and 2015)

Interestingly enough innovative corporate partnerships are

being forged between alternative finance platforms with the likes

of Virgin Amazon Uber Sage and KPMG This has certainly

pushed boundaries ndash merging the traditional corporate world

with the disruptive models of alternative finance

Invoice trading the second highest model continues to be a

popular financing tool for small and medium-sized enterprises

wanting to trade their invoices or receivables at a discount

in exchange for the speedy procurement of working capital

However while the GBP 270 million market size in 2014 grew by

178 compared to 2013 growth from 2014 ndash 2015 was more

modest with a 20 growth rate to GBP 325 million

Zooming in on the strategies banks (and alternative finance

providers for that matter) use to better position themselves we

identify a lot of partnerships Banks teaming up with online lenders

This is a different dynamic ndash instead of trying to displace banks

online lenders decided to strike partnerships For instance On

Deck teamed up with JP Morgan Chase and said it will help speed

up the process of offering small business loans to the banks 4

million customers Lending Club another online lender tied-up

with Citi Moven partnered marketplace lender CommonBond

In a game of tongue twisters American Banker said that fintechs

team up to become more like a bank I would argue that banks

team up with fintechs to become more like a fintech

Also another question arises what if a corporate want to expand

into more countries That may mean to establish a physical

presence in each location that is relevant to their client Could

banks satisfy that need too

The industry is dynamic and some companies leapfrogged some

steps but although the developments are innovative and exciting

the road ahead is paved with many bumps

About Mirela Amariei Crafting large-scale industry reports carrying out interviews and writing about innovation in payments and fintech are Mirelarsquos daily treats As the Senior Editor at The Paypers she speaks frequently with key thoughts leaders to identify trends and trendsetters She can be reached at mirelathepayperscom and via Linkedin wwwlinkedincominamarieim

About The Paypers The Paypers is the leading source of news and intelligence for professionals in the payment community worldwide Our products are aimed at merchants payment services providers processors financial institutions start-ups technology vendors and payment professionals and have a special focus on all major trends and developments in payments-related industries including online and mobile payments and banking ecommerce e-invoicing supply chain finance web fraud amp security and many others

wwwthepayperscom

Mirela Amariei

Senior EditorThe Paypers

Thought Leadership Section

B2B Payments

13 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016 | THOUGHT LEADERSHIP

B2B payment innovation the beginning of exciting times

Deutsche Bank

Why should banks and corporates invest in real-time payments For corporates the benefits stem from the capability for executing

time-sensitive transactions ndash such as High-Value critical vendor

or MampA-related payments ndash while receiving close-to-immediate

proof of execution instead of waiting for the specific entry to be

documented by standard intraday reporting

For banks to serve client needs they need to be involved in these

developments which is why Deutsche Bank and others are helping

develop a Pan-European Instant Payment Solution For large

banks involvement in establishing such future paymentcollection

platforms is a revenue loss avoidance tactic rather than a

profit creation one as they will otherwise lose market share to

disruptors And while urgent payments can currently be more

expensive there may be a regulatory push for banks to provide

real-time payments with no extra charges in the near future

What are the benefits and challenges of implementing pay-on-behalf-ofcollect-on-behalf-of structuresPOBOCOBO structures help corporates consolidate cash

flows and rationalise account structures as well as increasing

purchasing power when negotiating cash management terms

with banks POBOCOBO simplifies liquidity management as

cash is centralised through domestic and cross-border cash

concentration It also allows for streamlined cash management

activities across subsidiaries as payments and receivables

are bundled in one place (such as a Shared Service Centre)

for execution out of the central account Improving cash and

liquidity management in these ways reduces credit need and the

operational burden on subsidiaries

Deutsche Bankrsquos experience and feasibility studies on POBO

COBO in Europe over the past four years have shown four kinds

of challenges market-specific practices and legal tax and

operational considerations In addition POBOCOBO structures

differ in the status of the underlying account For POBO the

ordering account can be a normal operating account in most

jurisdictions but since funds collected within COBO structures

often relate to different legal entities the underlying account is

often considered a trust account This has further implications

For instance depending on regional Anti-Money Laundering laws

an account can contain either own funds of the account holder

or funds that belong to third parties (trust accounts) ndash not both

That in turn may require corporates to separate some incoming

transaction flows from the entities flowsrsquo part of the on-behalf-of

structure

What main friction points in B2B cross-border payments will disappear in the next five yearsDevelopments driven by regulatory change or facilitated by

technology and solution-based improvements will ultimately

allow for more frictionless and cost-effective transaction

processing For example the Payment Services Directive (to be

updated soon by PSD-2) affected cut-off times and value-dating

habits and a shift will likely take place in this area to align cross-

border payments in different currencies with the same value-

dating as SEPA payments

Similarly currency payments will likely become easier thanks

to automated conversion services such as Deutsche Bankrsquos

FX4Cash which offers client ease-of-use real-time FX rates

and enhanced transaction data And solutions such as Virtual

Accounts will improve reconciliation and accounting (through the

rationalisation of physical bank accounts across a region)

Retail banking has experienced futuristic leaps in the payments space ndash now is the time for the same level of transformation and convenience in the B2B space

The industry is poised to apply such innovation to the B2B space ndash but only through collaboration will this be possible


Share this story

What bank-core competencies foster innovation and growth through fintech partnerships in the B2B payments space We have witnessed the effects of the first wave of digitalisation

on daily activities particularly through smart devices and apps

Peer-to-peer and C2B processes have already experienced

radical transformation and the industry is poised to apply such

innovation to the B2B space ndash but only through collaboration

between incumbents and new players will this be possible

Fintechs have the technical skills and understanding of consumer

behaviour fail-friendly mindset and regulatory freedom to be

innovative ndash but in an increasingly competitive landscape that

will see market consolidation over coming years they need more

than that to survive Banks conversely experience internal and

external obstacles to innovating independently including legacy

systems internal siloes a cautious culture and tighter regulatory

restrictions But by offering the strength of their established

reputation global infrastructure existing client-base and expertise

regarding risk regulation and treasury needs banks can support

fintech growth bring new products to market through such

strategic alliances and successfully scale-up new offerings

What are the Bankrsquos plans for blockchainDistributed Ledger Technology is not new but interest around its

potential applications is rising and opportunities for blockchain

ndash from fraud prevention and risk reduction to quicker and more

transparent payment flows ndash cannot be ignored We are at the

beginning of the blockchain journey and the ways it will change

business models processes and ecosystems are yet to be

seen but we predict immense potential up and down the value-

chain Participants ndash for example it was one of the first banks to

test smart contracts for corporate bonds which was conducted

in-house in collaboration with the DB Labs Deutsche Bank

recently opened innovation labs in London and Berlin with a third

just opened in Silicon Valley which will help the Bank best utilise

new technologies and deepen relationships with start-ups In a

decade there will be myriad different blockchain technologies and

interoperability will be crucial The Bank is an initial driving member

of blockchain consortium R3 CEV and participated in trials of five

distinct blockchain technologies with other member banks

About Andrew Reid Appointed to his current role in 2013 Andrew has been with the Bank for 17 years within corporate cash management and trade finance Andrew supports and advises clients in adapting to the new regulatory environment and optimising their treasury operations

About Deutsche Bank Deutsche Bank provides commercial and investment banking retai l banking transaction banking and asset and wealth management products and services to corporations governments institutional investors businesses and private individuals Deutsche Bank is Germanyrsquos leading bank with a strong position in Europe and a significant presence in the Americas and Asia Pacific

gtbdbcom

Andrew P Reid

Managing Director and Head of Cash Management Corporates EMEA Global Transaction Banking

Deutsche Bank


Blockchain In B2B Payments

Aite Group

Financial institutions are spending time and resources to find

out how much business they can gain by adopting blockchain

technology This hype on the bank side does not correspond

to similar interest from corporations nor itrsquos clear whether

blockchain technology creates similar business opportunities

for each side Yet a significant roadblock must be removed

That is the extremely poor understanding corporate people

have about blockchain In a January 2016 survey 95 corporate

executivesmdash66 of whom were supply chain and treasury

managers with the remaining coming from IT legal and salesmdash

were asked if they were familiar at all with the term ldquoblockchainrdquo

Over 80 answered ldquonordquo The first step of the journey is thus to

align on terms and definitions Consider blockchain as a ldquosecured

spreadsheetrdquo that sits in the cloud that multiple parties can review

Each of the transactions that are a part of it is guaranteed by a

set of cryptographic keys and all transactions are stored in one

database The blockchain is essentially an enormous database

that runs across a global network of independent computers

Main characteristics of blockchainIrrevocability There is an irrevocable trail (ie time-stamping)

of all the transactions that have ever been made which makes

attempts at hacking or fraud unsuccessful

Title transfer It allows property whose ownership is controlled

via the blockchain (ie physical property such as cars phones

or houses)

Distributed The ledger represents the truth because mass

collaboration constantly reconciles without having the need to

trust because thatrsquos built into the mechanism

Smart contracts Perhaps the most relevant blockchain feature

smart contracts are self-executing contractual states stored on

the blockchain which nobody controls and therefore everyone

can trust The code can control and restrict how the data is

accessed and used

Where do we go from hereA bitcoin that transfers ownership of title of a crypto-currency

can be applied between two parties that exchange goods for

money in business-to-business (B2B) transactions B2B partners

would best benefit from blockchain-based applications in the

increasingly global B2B payments There are complexities with

foreign payments that are not experienced in domestic payments

such as foreign exchange value-added taxes in certain countries

interfaces with many clearing and settlement networks and

the need to understand and apply specific country laws with

regard to payments processing Knowledge about the status of

payments can be even more important than settling the payment

itself The status of payments may affect the ability of a buyer

to make a purchase from a seller depending on the amount of

credit extended by the seller to the purchaser It may also impact

future pricing provided by the seller to a buyer For time-critical

payments knowing the location of a particular transaction in the

payment process allows the payer to take action if the payment is

delayed The more corporate treasurers know about outgoing and

incoming payments the better their cash forecasts

Blockchain and B2B paymentsThis article examines which blockchain drivers best apply to

current B2B payment process elements and intermediaries

ndash eg banks network providers clearing and settlement

structures Rather than revolutionary the analysis determines

how blockchain supports improves and- eventually- replaces

current B2B payments processes (see Figure 1)

Figure 1 Blockchain Features Applied to B2B Payment Process Elements

Source Aite Group


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When paying the supplier the buyer issues a payment

instruction from its accounts payable to the bank This initiates

the transfer of title of currency and a time-stamp makes the

transaction irrevocable The intermediary bank may enjoy

blockchainrsquos irrevocability and title transfer to secure the

uniqueness and traceability of the transactions underpinning

the cash transfer The distributed nature of the blockchain

ledger avoids any delayed centralized control of AML screening

checking of availability of funds and clearing billing and

reporting activities All executed operations are validated within

The ledger offers the extra capability to the bank to swiftly handle

format translations from the clientrsquos accounting system A smart

contract on the blockchain provides the bank with the capability

to charge transparent and auditable service fees

The distributed ledger operates as the connectivity software

that the clearing network provides to all trading parties and

intermediaries The network is also capable of offering time-

stamping services as well as detect transactions that may trigger

the execution of smart contract applications Format translations

can be easily offered as a value added service

The beneficiary bank receives notice of an irrevocable transfer of

cash title that the distributed ledger renders valid and immediately

executable The ledger also streamlines all necessary account

management verifications to validate the payment data The sellerrsquos

account is immediately credited and all subsequent regulatory

and accounting reporting is made auditable and irrevocable

Bank services can be charged via smart contract applications

agreed between the parties The blockchain enables the seller-

ie the B2B payment receiving party- to update the accounts

receivable database with a payment confirmation that becomes

an auditable transaction

Blockchain is certainly not the panacea for all problems but the

frequency of applied features to the B2B payment processes

tells however that all parties involved could strongly benefit

from this technology without the need for anyone to be removed

About Enrico Camerinelli Enrico Camerinelli is a senior analyst at Aite Group specializing in wholesale banking cash and trade finance and payments He brings a strong European focus to Aite Grouprsquos Wholesale Banking practice Mr Camerinelli has been widely quoted by publications ranging from American Banker to the Financial Times

About Aite Group Aite Group is an independent research and advisory firm focused on business technology and regulatory issues and their impact on the financial services industry With expertise in banking payments wealth management capital markets and insurance Aite Groups analysts work with clients as partner advisor and catalyst

wwwaitegroupcom

Enrico Camerinelli

senior analystAite Group


The Emerging Internet of Payments

Traxiant

New offerings have been proliferating in B2B payments not

to mention financing solutions of various kinds Their growth

however and the shift from paper to electronic has long been

stymied by a lack of interoperability Most industry actors see the

need for an industry-scale solution to this problem and believe it

will happen eventually But fewer are clear on the path to get there

In the USD 700 trillion of B2B payments globally connecting

the many buyers sellers and providers of payments financing

and software solutions might seem an impossible task And

yet we have the example of the Internet A framework for

such payments interoperability would also almost inevitably be

standards-based and global So itrsquos reasonable to use the term

the ldquoInternet of Paymentsrdquo (ldquoIoPrdquo) to talk about this The naming

of such a phenomenon however is of course less important

than questions such as ldquowhetherrdquo ldquowhatrdquo ldquohowrdquo and ldquowhenrdquo

Unlike most industry actors we believe that the conditions for

the IoP to emerge have recently been falling into place Tactical

business needs are aligning with cloud-based technology

platforms and solution options And alignment with standards

frameworks notably around ISO 20022 offers the potential for

faster and wider scaling of such solutions with lower investment

The payments solutions that account for most B2B volume

today such as cheque and ACH are commoditized Their

transaction revenue models donrsquot support much investment

in next-generation solutions Basis point revenue streams

from receivablestrade financing forex and card models by

contrast can support such investments Buyers nowadays donrsquot

pay much for those services most rather expect to receive

discounts or rebate payments Thus a critical driver of revenue

in such businesses is the ability to get suppliers enrolled and

agreeing to pay the relevant fees This supplier onboarding

process is invariably hard work especially as you get further

out on the ldquolong tailrdquo Most new ldquosolutionsrdquo being promoted to

suppliers offer benefits of earlier or faster payment But they are

from the supplierrsquos perspective typically exception processes

and thus value-subtracting

Among enterprise buyers card e-payables and global payments

solutions are now relatively widely adopted ndash as indeed are

supplier networks Increasing competition from financial

institutions but also fintech players makes it ever more important

that providers optimise for adoption and value also on the

supplier side of the equation Strategically the requirement here

is for an extensible standards framework and platform that can

connect suppliers globally across both commodity payment and

value-added trade and financing scenarios

Tactical solutions however are also needed more narrowly

focused but aligned with the larger strategic goals One essential

element of such tactical solutions is enabling suppliers to

connect using their existing payments and software solutions

For ldquolong tailrdquo suppliers their ability to do so via a low friction

ldquoconsumerizedrdquo experience will also matter In recent years

cloud solutions and APIs to enable this have become available

for some widely-used financial solutions No silver bullet will

work for every supplier instantly And yet solving the problem for

supplier systems one by one is clearly an approach that wonrsquot

scale However by aligning with ndash and shaping ndash a standards-

based IoP framework early movers can start to build network

effects that do scale Proprietary network effects can and will

drive competitive advantage especially for early movers even

when built on top of standards A broader network effect will

come from the technical openness of the growing IoP ecosystem

As that happens industry actors of all kinds will invest in

solutions based on IoP standards so as to get connected


Share this story

No discussion of B2B payments futures would be complete

without touching on the blockchain Such solutions seem likely

to play an important role How the various ldquonot-Bitcoinsrdquo with

their technical and regulatory benefits will fare against Bitcoin

itself remains unclear Standards such as the ldquoInterledger

Protocolrdquo could play a role perhaps enabling an ldquoInternet of

Valuerdquo layer for the IoP That said in global B2B payments

the ldquochicken-and-eggrdquo challenges that are inherent in any

new network technology clearly exist Blockchain adoption as

a purely ldquoback officerdquo or inter-bank technology seems likely

to happen first within narrowly-defined early use cases and

communities Adding value to pre-existing end-user (buyer-

seller) interactions like Skype did may be one plausible early

adoption scenario ldquoPiggy-backingrdquo on another network layer or

use case like Paypalrsquos initial use for eBay payments is another

way to think about this Combining all of these may work best

end user demand can be effective in driving adoption by solution

providers notably banks in this case

An Internet of Payments as it emerges will reshape the B2B

payments industry and much more besides It will likely develop

quite suddenly as a mass phenomenon much like the Internet in

the mid-nineties It will create winners and losers Those who move

early to test learn and shape the emerging Internet of Payments

ecosystem and framework will be best positioned to win

About Roger Bass Roger Bass is Founder CEO and Principal of Traxiant Previously with Intuit for eleven years he recently led a Network Payments initiative Other instrumental roles included the launch of Intuitrsquos European operations first online banking solution SMB Internet group and the QuickBooks platform Reach out via rogertraxiantcom

About Traxiant Traxiant provides software and consulting solutions to help financial and technology providers grow their B2B Payments and Financing solutions and profit from the Internet of Payments Solutions and areas of expertise include card e-payables global payments receivables financing and supplier networks

wwwtraxiantcom

Roger Bass

CEO and PrincipalTraxiant

Blockchain


B2B Blockchain-based Payments Can it Beat the Banks

Orchard Finance

For those interested in Supply Chain FinanceTrade Finance

there is an increasing amount of articles about blockchain

For those who are not yet familiar with this term it is the

underlying technology behind Bitcoin The starting point for this

technology was to allow two parties to transfer a token of value

(Bitcoin) from one to another in a cheap reliable and fast way

Three main criteria for it are the two parties can be anywhere in

the world there should not be a central authority processing a

transaction and the same token (Bitcoin) cannot be spent more

than once

To meet all these criteria the solution proved to be a distributed

ledger containing all transactions visible for all participants in

the network A transaction is approved by consensus which is

reached by cryptographic encryption This technology is called

blockchain Many articles about blockchain are focused on the

way it works (hence are very technical) but because of the

complex terminology being used it causes more confusion than

clarity Perhaps the authors of these articles have been inspired

by former American president Harry S Truman when he said lsquoIf

you canrsquot convince them confuse themrsquo

Instead of focusing on the technology it is far more interesting to

understand what it can do for businesses The technology itself

is very powerful and it has the potential to radically transform

how businesses work and how payments are done If a Bitcoin

can be transferred in such a cheap fast reliable manner why

not a Euro or a Dollar

The current situation of a lsquoreal-time paymentrsquo is still depending on

cut off times of banks The party that initiates the payment sees

the amount deducted from their bank balance then the receiver

will get the amount some time later Depending on the sending

and receiving bank this can range from a couple of hours up to

a couple of days What happens is that the bank of the sender

updates its ledger (the bank balance of the sender) sends the

transaction via (most likely) the SWIFT network to the receiving

bank Afterwards the receiving bank receives the transaction

and updates its ledger (the bank balance of the receiver)

Blockchain payments how real-time are theyAs said before blockchain is a distributed ledger a shared

database All parties involved have access to this database

thus the participants that are allowed to participate see the

same version of the truth This means that if one party wants to

send a token of value to another party it updates the distributed

ledger When this update is agreed by the participants the lsquonewrsquo

state of the ledger is accepted With Bitcoin the acceptance

is done by miners validating the transaction via sophisticated

cryptographic encryption A transaction is fully validated in

approximately 8 minutes

The Bitcoin blockchain is a well-developed network with many

miners that can vet a transaction This Bitcoin blockchain

however might not be the best blockchain for B2B payments

There are providers in the market that are building new types

of blockchains that are specifically developed to facilitate

payments within a Supply Chain This means that payments

can be done real-time worldwide at low cost Next to the fast

low-cost payment processing there is another interesting aspect

to blockchain-based payments By using so-called lsquosmart

contractsrsquo payments can be made conditional

There are a wide array of situations this can be applied to

bull A payment can be executed in case certain criteria are met

For example a container with bananas arrives in the Port of

Rotterdam at an agreed time and by using special scanning

equipment the quality and quantity are checked and approved

When these criteria are met a payment is executed automatically

bull A budget can be allocated and this budget can only be spent

on predefined parties For instance a government provides

a rental allowance for individuals with a minimum income

This allowance can only be spent at a pre-approved landlord

In case it is not used before a certain moment in time the

allowance is cancelled


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bull Various parties in a supply chain can all be paid when the end

consumer purchases the product For example a consumer

buys a song online At the moment of purchase the amount

paid is distributed amongst the band the producer the studio

and the record label All parties are rewarded based on their

added value

Blockchain-based payments open up many possibilities

Not only is it possible to trade easier and cheaper but also

payments can be made smarter Banks are particularly interested

in this new technology and are closely investigating the potential

it may offer to them It is exciting times for banks and payment

institutions as with blockchain the real disruption is knocking

on the door The disruption here is not that things are done a

bit smarter more efficient or faster The disruption in payments

is that there is technology available that makes banks PSPs

credit card companies redundant Cutting out these middlemen

by making use of technology that provides the same trust and

robustness (or perhaps even more) will increase the speed of

payments increase the possibility to trade with each other while

significantly reducing costs

About Kris Wielens Kris Wielens is Senior Consultant with Orchard Finance He has more than a decade experience is (corporate) payments with various fims He has been active as Head of Strategic Partnerships EMEA Business Development Manager Sales Manager and Credit Analyst

About Orchard Finance Orchard Finance is a leading independent consultancy and staffing company specialized in the areas of Finance and Treasury Tailoring to our clients we offer advisory services project management and staff ing support Our professionals have a long standing reputation based on operational and project experience in banking corporate finance and treasury management amp control

wwworchardfinancecom

Kris Wielens

Senior ConsultantOrchard Finance


The Three-Phased Transformation of Supply Chain Finance with Blockchain Technology

Innopay

At Innopay we saw the early discussions around Bitcoin in 2010

transforming into a discussion about blockchain technology

by 2015 When blockchain was eventually seen as a promising

technology the discussions transformed to ldquoSo where can we

use itrdquo Although many contexts for the usage of blockchain

concepts have been discussed this article specifically discusses

the use of blockchain concepts as a transformative force in

Supply Chain Finance (SCF) SCF as we broadly define it is the

management of financial flows in the supply chain which includes

financial processes (transaction processes data processing

invoice matching etc) and SC financing techniques

We believe blockchain concepts could fundamentally change

how we organise SCF in the nearby future but it will take time

before involved stakeholders will have gained the desired

level of common understanding needed to make it a reality

The fundamental reason behind this is that the benefits of

blockchain only get realised within the context of a network and

the level of usage of a technology within a network is largely

dependent on usersrsquo collective level of understanding

We predict that the collective understanding comes in phases (as

it is currently unfolding in the banking and insurance industries)

namely shared database transactional network and automatable

transactional network This development of the collective

understanding provides a tidy framework in which we can

describe the abovementioned transformation of SCF

Phase 1 Setting up shared databases (0-3 years)One of the fundamental e-business process challenges has

always been how do companies cross each otherrsquos organisational

boundaries to allow a secure dependable and synchronised flow

of goods and transactional data The most logical means would

be by using a shared database Currently blockchain technology

is the de facto instrument for shared database where all the

involved parties can read and write on the database while the

state of the database can be trusted without the involvement of

intermediaries As the communal understanding ndash and subsequent

use ndash of blockchain as a shared database gains traction within the

context of SCF we will see fundamental improvements in essential

processes such as

bull Synchronising processes

bull Harmonised naming and numbering conventions

bull Deducing the current state of invoices

bull Invoice double spending when it comes to financing

bull Insight into goods flows (ownership and arrivals)

bull Less administrative steps for goods receipt to activate invoice

sending and subsequent payout

bull Cheap and transparent dispute resolution

Phase 2 Transactional network (3-5 years)In the development of an understanding of blockchain technology

the knowledge that a transaction is nothing more or nothing less

than an accepted change to a database is an essential step

Although this insight may sound straightforward it is counterintuitive

based on the ubiquitousness of the traditional banking payment

and escrow services for transactions in SCF Their role is seldom

questioned or re-examined As soon as this insight becomes

common knowledge the potential of blockchain technologies

within transactions for both financial and ownership of goods

purposes will be understood at a more innovative level

With blockchain-based transactional networks any type of

transaction can be directly executed without the need for third

parties As soon as this functionality becomes part of the collective

understanding of the SCF community the community can take

advantage of this by reducing complexity by coordinating

financial information monetary flows and goods movements into

one transactional network

Currently transactional complexity and challenges surrounding

the coordination of different transactional flows are limiting

scalability and international breadth of SCF networks Blockchain

technology can provide elegant solutions to these impediments

and unlock value at an international level by further linking small

SMEs to global corporates and financiers


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Phase 3 Automatable transactional network (5-7 years)As soon as the SCF community gains communal understanding

of blockchain as a transactional network then the next natural

line of inquiry could be the nature of transaction initiation During

this inquiry the following components of blockchain technology

will be discovered and the third phase might commence

bull Multi-signature capability ndash a means of separate entities to

safely and securely state whether an event took place or not

bull Smart contracts ndash agreements that automatically execute the

change of ownership of funds or goods based on whether an

event took place or not

bull Cryptocurrencies ndash a set of tokens of a variable but crypto-

graphi cally verifiable amount which is used for efficient value

transfers

By means of combining multi-signature and smart contracts with

existing e-mandates or cryptocurrencies the automatic payment

of invoice amounts or other types of collateral could be initiated

and executed instantaneously and automatically This will open

the path towards an international SCF network that automatically

creates investment grade financial instruments as a seamless

part of the supply chain process

ConclusionAlthough history shows us that we can only have so much

foresight we see a clear match between the features of blockchain

concepts and SCF we believe that at some point blockchain will

be a prominent part of SCF The speed at which SCF will evolve

and innovate will depend on the creativity of its stakeholders

and how fast the common understanding on how to use the

technology will develop Seeing that blockchain technology has

something compelling to offer at each phase of understanding we

see rapid developments taking place sooner than later

About Gys Hough Gys Hough follows the develop-ment of blockchain concepts since 2012 and was involved in shaping several business ideas based on blockchain concepts in the field He is also involved in the facilitation of various discussions surrounding blockchain applications in the financial industry

About Innopay Innopay is an independent consulting company specialised in online payments digital identity and e-business We help our clients including financial institutions governments and corporates to develop the compelling strategies and digital services for consumers and companies that are key for successful competition in a rapidly digitising world

wwwinnopaycom

Gys Hough

ConsultantInnopay

Innovation In Payments amp Banking


SWIFT

Launched in December 2015 to much anticipation in the industry

the initiative has received strong backing with more than 50

leading banks already signed up The Paypers spoke to Wim

Raymaekers SWIFTrsquos Head of Banking Market and programme

manager of the global payments innovation initiative to find out

more about this exciting move

We often hear that B2B payments are opaque complex and risky Why do you think that is and where do you think that improvements can be madeYes currently when a corporate treasurer sends a request

for a cross-border transaction to his bank he typically has no

sight on what actually happens with that demand They often

liken this to a lsquoblack holersquo saying they have no view on when

payments occur or their final costs This can lead to problems

with suppliers or end-customers not to mention increasing

financial risks resulting from payment delays or non-compliance

with regulatory requirements

I think improvements can be made in three main areas firstly

the speed of payments corporates want fastest payments so

banks need to be able to guarantee that they are made within

certain timeframe Secondly corporates want to know the

exact payment amount that will reach their counterparty ndash here

banks need to provide transparency on the fees involved and

the amount credited to the creditor And thirdly they want to

be able to track payments banks need to let corporates know

when payments have been initiated and credited to the creditors

account to avoid delays in the supply chain or frictions between

supplier and seller

What are the opportunities for a corporate to leap forward through the use of the cross-border payment industryCorporates are not in the business of payments they just want

to buy and sell Yet they do have to manage their treasury to

make those payments ndash so a better faster more transparent

payment solution is important to them On top of that having

a good payment infrastructure benefits your supply chain

Because if the money does not get to the supplier in time the

credit line will go up causing delays on all fronts So the better

your payment infrastructure is the stronger and more reliable

your supply chain is

Designed for the corporate treasurer SWIFTrsquos global payments innovation initiative offers an ambitious roadmap for reinventing the correspondent banking model as we know it today With ever increasing competition from new entrants offering same-day or even real-time payment facilities SWIFT is uniting the banking industry to provide corporates with a cross-border payment service that offers greater speed transparency and predictability

Correspondent banking rejuvenated

SWIFT is uniting the banking industry to provide corporates with a cross-border payment service that offers greater speed transparency and predictability


Share this story

What can you tell us about the global payments innovation initiative (gpii) and what are SWIFTrsquos plans in regard to this initiativeAs part of the initiative SWIFT is working in close collaboration

with the largest transactions banks in the world to enhance

their corporate customersrsquo cross-border payment experience

Together we will strive to provide a faster service with upfront

clarity on costs confirmation of delivery and richer remittance

information data

We are now working together with the banks to commonly

agree service level agreements (SLAs) to which all the initiative

member banks must comply The new service will be designed

to address end-customer needs without compromising banks

abilities to meet their compliance obligations market credit and

liquidity risk requirements

What is the role of blockchain in this initiativeSWIFT is devoting significant resources to instigate the

opportunities and challenges of deploying blockchain and

distributed ledger technologies more broadly on our platform

While the initiative aims to first make improvements based on the

existing infrastructures in parallel we are building a gpii vision

for cross-border payments This will set out how we will adopt

new technologies in order to ensure corporate customers receive

the best possible payments experience in the near future

Wim Raymaekers

Head of Banking MarketSWIFT

About Wim Raymaekers Wim Raymaekers leads SWIFTrsquos banking initiatives worldwide and is responsible for developing and driving value propositions across the banking community In this capacity Wimrsquos mission is to help banks grow their business particularly in view of changing customer and market requirements

About SWIFT SWIFT is a global member-owned cooperative and the worldrsquos leading provider of secure financial messaging services We provide our community with a platform for messaging and standards for communicating and we offer products and services to facilitate access and integration identification analysis and financial crime compliance

wwwswiftcom


Moving payments into the digital era

UniCredit

Which are UniCreditrsquos strategies to remain competitive in the B2B cross-border payments spaceUniCredit is taking a number of steps to ensure that it offers a highly

competitive portfolio of payments services including a number of

tools for simplifying cross-border transactions

In particular UniCredit has invested considerably in the

Bank Payment Obligation (BPO) ndash a settlement tool which

enables firms to execute secure transactions mediated by

partner banks through a quick and efficient digital process

When carried out properly BPOs combine the risk mitigation and

financing advantages of Letters of Credit (LCs) with the digital

speed of open account settlement This makes them particularly

advantageous for cross-border transactions ndash especially with

unfamiliar counterparties or those concentrated in a particular

region or industry Thanks to bank mediation the risk of non-

payment in such cases is drastically reduced ndash allowing firms

to take on more business and sell their receivables more easily

UniCredit has worked hard to bring these benefits to clients in

the most efficient and convenient format possible ndash offering vast

improvements on LC processing times which are only set to

increase once the process is fully digitalized This principle of

fully digitalized processes is also reflected in UniCreditrsquos virtual

accounts services which enable clients to consolidate their

bank accounts in a given currency into a single ldquoparentrdquo account

This can then be divided internally into as many ldquovirtualrdquo

accounts as required ndash with each account given its own allocated

funds account number and permissions Already available

for affiliatesrsquo incoming and outgoing transactions in nearly 50

countries including the SEPA zone and six CEE markets this

system generates huge benefits to efficiency scalability and

transparency ndash eliminating the need for cash pooling expediting

the process of opening and closing accounts and providing a

comprehensive overview of cash flows without sacrificing detail

Going forward UniCredit intends to remain at the cutting edge

of B2B cross-border payments with new initiatives such as the

integration of big-data analytics into existing payments services

ndash offering clients insights based on payments data and other

relevant information

With increased customer demand to install real-time payment infrastructures what trends do you see happening right nowThe demand for instant payments is part of a wider trend towards

greater speed and efficiency in the industry This is particularly

notable in ecommerce where firms are looking to provide

increasingly rapid delivery services ndash with next-day and even

same-day delivery now possible The use of digital technology to

expedite routine processes is becoming more and more prevalent

with clients increasingly basing their expectations on their

experiences in the retail sector UniCredit is keen to play its part

in this development and is already implementing real-time rates

for instant payments ndash including for cross-border transactions ndash

ahead of the November 2017 implementation date

How has UniCredit adapted to the digitalisation of the transaction banking industryUniCredit has established itself as a frontrunner in the

development of key advances such as the BPO and virtual

accounts and continues to search for new and innovative ways

to leverage technology for the benefit of its clients To this end

it has taken a number of steps to ensure continued innovation

ndash with product development teams harnessing the expertise of

traditional banking experts and technology specialists along

with a wide range of external perspectives

This has already seen blockchain technology become a reality

for custody services clients while virtual accounts technology

is being supplemented by CAMT messages ndash enhancing

standardisation even beyond the SEPA zone with automated

reconciliation between banks and corporates

The field of payments is undergoing a period of transformation as digitalisation paves the way for greater speed and efficiency


Share this story

UniCredit has also adopted a more holistic client interface

including its IT solutions provider in client meetings This enables

UniCredit to adapt its solutions to clientsrsquo individual technological

requirements rather than expecting them to adapt to accommo-

date the solution

How do you support your CEE-based clients in their efforts to optimise working capitalUniCredit offers its CEE-based clients a full range of support for

their working capital optimisation programmes ndash having been the

first in Russia Bulgaria and Croatia to offer classic services such

as cross-border cash pooling UniCredit also offers unrivalled

BPO coverage with the instrument already available in Bulgaria

and Romania In terms of approach we encourage firms to avoid

the lsquosilorsquo mindset of asking how they can benefit from individual

tools such as receivables finance or approved payables finance

ndash instead promoting a focus on overarching short- mid- and

long-term goals Mostly it turns out that short-term liquidity

generation is not corporatesrsquo main concern ndash especially given the

abundance of liquidity in todayrsquos market Other factors however

such as risk mitigation supply-chain stability and balance-sheet

optimisation almost always figure in their plans ndash demanding

a holistic programme for working capital optimisation This of

course also means being prepared for the eventuality of liquidity

suddenly or gradually drying up

In the face of fintech disruption which areas can banks capitalise onFintech companies certainly bring new impulses to the transaction

banking sector but banks almost always excel by capitalising

on their existing strengths ndash drawing on their holistic financial

expertise and their status as trusted and highly regulated

partners to corporate clients These strengths can to a certain

extent be amplified through digitalisation within banks ndash

translating greater efficiency into greater convenience for clients

Even more promising however is the potential for co-operation

between banks and specialist technology companies with banks

combining their core strengths and broad client base with fintech

independence and nimbleness to create the ideal conditions for

innovation

About Markus Strauszligfeld Since 2005 Markus Strauszligfeld has been Head of International Cash Management Sales at UniCredit responsible for cash management and eBanking sales to large and multi-national organisations in Europe the US and Asia

About UniCredit UniCredit is a bank with a substantial footprint in Europe and an extensive international network of branches representative offices and correspondent banks ndash enabling it to follow its clients wherever they go Its payments services come under the Global Transaction Banking (GTB) unit

wwwgtbunicrediteu

Markus Strauszligfeld

Head of International Cash Management SalesUniCredit


Making One-Click Finance Possible ndash Who Are the Relevant Stakeholders and How They Should Work Together

sharedserviceslink

There are 6 stakeholders in your supplier financing programme

(SFP) This article examines each of the groups and what their

contribution to the SFP is

Accounts PayableIn recent years the AP function has nudged its way to the front

of the crowd becoming the owner of most SFPs This is an

interesting development as the owner in the past was Treasury

This shift has come because of the evolution in invoice

processing technology Ten years ago APrsquos focus was to (slowly)

pay paper invoices Since then most multi-nationals have

implemented e-invoicing Sizeable volumes of invoices are now

received electronically meaning invoices are processed posted

and paid quicker And whether or not AP realised it at the time

the scene was being set for something greater to unfold early

pay programmes

Accounts Payablersquos contributionAP teams have become experts in onboarding suppliers This

expertise was established during earlier e-invoicing or P-card

programmes Supplier onboarding is complicated but after a

few rounds of reaching out and asking suppliers to change

something you soon become proficient in onboarding AP has

been driven to become expert in supplier onboarding as the

financial gain relies on supplier engagement This positions AP

to own the supplier onboarding process for your SFP

ProcurementWhereas AP owns the onboarding process Procurement

will own the actual relationship with suppliers which means

owning the message contained in the supplier communication

Suppliers listen to Procurement and see it as the key point of

contact Procurement can help make the SFP more successful

by drafting and signing off on clever messaging

Procurementrsquos contributionProcurement also owns the assessment of supplier risk ndash

assessing each supplierrsquos financial risk year-end and the

suitable rate that should be applied (given their credit history

etc) Forensic research into each supplier will further your

understanding of the opportunities and risk and the effect on

the return

ITYou may decide to use your own cash or a third partyrsquos cash

Either way technology will be involved You will want IT brought

into the project early to understand macro considerations

like security connectivity and compatibility IT will likely leave

business process and functional requirements to AP Treasury

and Procurement

ITrsquos contributionSFP technologies have been on the market for years They are

developing and becoming more varied Itrsquos likely that someone

in the IT team has installed a SFP tool before Make sure this

person sits on the team Also make this program a priority SFPs

will not drain IT (wo)man days so it need not compete with more

demanding IT initiatives Work with someone in IT that lsquogetsrsquo this

and can approve on security etc at a quick pace

TreasuryAlthough Treasury was historically the owner and leader of SFPs

it has taken on the role of collaborator in recent years offering

crucial perspective regarding the larger levers that should or

shouldnrsquot be pulled given the companyrsquos cash position

Treasuryrsquos contributionTreasury understands the flow of cash and its real cost and

opportunity to the business Because of this it is well placed to

regularly assess which approach to take ndash is it better to use the

companyrsquos own cash use a third partyrsquos cash (and if so which

party) or to stall on early payments altogether Treasury has a

360ordm view of the companyrsquos strategic aims the balance sheet

the bank account real-time rates and alternative rates through

alternative methods as well as whats most important given

where the company is in its financial year Treasury is the brains

behind the SFP


Share this story

C-SuiteThe CFO needs to back your project and this support must

be visible It is important to educate them on the SFP early by

presenting them with relevant case studies you have gathered

and the possible business case

C-Suite contributionThey will need your direction but the CFO and CPO will add

panache to your SFP The lsquosignaturersquo on the comms piece sent to

suppliers should be theirs If any buyer in the business becomes

concerned about this programme the C-Suite needs to have

a response at hand To realise the significant savings that can

come from your SFP your C-Suite must be ready to provide the

required PR

SuppliersBuyers rarely push back against SFPs because a) itrsquos optional

for suppliers and b) itrsquos attractive for suppliers However getting

the suppliers to engage is instrumental and makes the supplier

a key stakeholder

Supplier contributionSuccess Without their participation your business case is a flop

So make sure they understand what the SFP is whatrsquos in it for

them what they need to do who they can reach out to with

questions or concerns and that participation in SFP inevitably

qualifies them as a preferred supplier

ConclusionGet the first five stakeholders onboard early at concept stage

so they feel supportive of the SFPrsquos direction and purpose and

ask them how involved they would like to be given their role

About Susie West Susie West is the CEO and Founder at sharedserviceslink and proudly labels herself as a shared services geek She has been in the shared services industry since 1998 In 2007 she set up sharedserviceslink a leading global business community for professionals looking to improve performance in shared services Her central aim is to help individuals companies and the market mature through the sharing and consumption of (mostly peer generated) best practice information

About sharedserviceslink sharedserviceslink is a business community for professionals working in shared services sharederserviceslink is viewed as trusted advisors to this market because it offers exceptional content connection insight and overall value

wwwsharedserviceslinkcom

Susie West

CEO and Foundersharedserviceslink

Exclusive interview


About the companyToken provides digital payment solutions for banks and their clients to deliver instant end-to-end secure and frictionless payments worldwide The solution addresses the key concerns of PSD2 security disintermediation and lack of revenue

wwwtokenio

Marten Nelson

VP MarketingToken

Website wwwtokenioOffices location Redwood City California USAFounded in 2015Categories payments psd2 fintech

Token

The next generation of payments infrastructure will first of all help banks open up

What drives real-time payments infrastructure adoption in the US vs EUA number of valuable business cases drive the adoption of real-

time payments infrastructure Both consumers and businesses

expect funds to be instantly available during a payment

transaction 25 years ago the invention of the Worldwide Web

allowed us to share data instantly and globally Exchanging value

should be just as easy and fast as moving information but for

a number of reasons this hasnrsquot yet happened While there are

regional real-time payments solutions the US and many parts

of Europe are still lagging But there is hope ndash the Feds in the

US and the ECB have launched real-time payments initiatives

Why did Token choose to leverage the bankrsquos existing ledger instead of using blockchain The main reasons were that we found the bankrsquos ledger to

perform pretty well in most cases and to leverage existing

infrastructure typically reduces the complexity of deployment

and therefore cost It was simply a cost-benefit analysis

There are many interesting use cases for distributed ledgers

and for some of our functions and in some situations it makes

sense Thatrsquos why we designed the solution with distributed

ledgers being optional

What is the value proposition for European banks by integrating Token Token solves the main issues banks are facing in terms of

PSD2 security disintermediation and the economics First you

can think of Token as a PSD2 firewall that protects the bank

infrastructure from poorly behaving third parties Second Token

retains the bankrsquos customer experience even when accessed by

third parties Last we allow banks to offer value-added services

that generate incremental net revenue


The Future of Banking Innovation and the Fintech Startups Journey

Future Asia Ventures

The financial services sector has become the poster child for

corporate innovation Over the last 5 years banks have been

investigating and experimenting with several new financial

technologies in the crowd funding trade processing lending

and wealth management areas These experiments have come

in different shapes and sizes Based on our research we know

21 banks that have launched accelerator programs around the

world Other banks have launched pre-accelerators incubators

and labs

As a research amp advisory firm we regularly speak with many

corporations startups and venture investors We are constantly

learning about the landscape Here are 5 perspectives we would

like to share

1 Fintech is old but the market conditions have never been betterMost experienced financial sector professionals understand that

this recent wave of fintech startups is just that ndash a wave Fintech

is a new term that captures a large category of existing and

growing technologies which involve transaction processing data

and record keeping Fintech companies have been innovating

since the 1950s The last 60 years produced ATMs credit cards

online banking and online stock investing to name only a few

Innovation in fintech is nothing new What is new is the explosion

of startups in the last six years There are now approximately

6000 fintech startups The playing field is crowded and thatrsquos

because the opportunity to innovate has never been greater

The combination of cheap capital a dry period in bank innovation

and a credit crisis followed by heavy regulation created the

right environment for startups to rise There has never been a

better time to be an entrepreneur

2 Regulation matters It might sound obvious but regulatory rules and compliance are

a very important part of the startup journey for fintech founders

This makes fintech different from other startup sectors

Founders in fintech are generally a decade or more experienced

than their peers Regulation is often an entry barrier because

you need to be licensed by regulatory bodies to do business in

each jurisdiction For startups that want to expand compliance

is mandatory and expensive The financial system for good

reason doesnrsquot tolerate risk As a result founders need to

cooperate with regulators budget for long waiting periods find

strategic partnerships that help their growth efforts and be in this

for the long haul Fintech is marathon not a sprint

3 Innovation canrsquot be measuredWhen speaking with innovation officers I am often asked

which program or format is the best People are looking for a

quantitative measure or a definitive leader among corporations

The truth is there is no one best model or best innovator

An innovation program should be designed around your

budget your timeline and the problem you are trying to solve

These factors are different for each company For some a

hackathon might be best while for others a robust corporate

ventures program might make more sense Available capital

decision-making dynamics and pain points vary per company

Each company has to do whatrsquos right for them However one

thing is certain ndash good innovation programs have a clearly

defined problem and success criteria Without a mandate you

are bound to go in circles

Number of Corporate Accelerators Launched Each Year Corporate accelerator launches have peaked So far in 2016 2 new accelerators have launched Going forward companies will design tailored open innovation programs and formats to engage and collaborate with startups


Share this story

About Falguni Desai She is the Founder amp Managing Director of Future Asia Ventures and has over 18 years of corporate strategy innovation and MampA experience She has worked globally with business leaders at Fortune 500 firms in the financial media and technology sectors to foster growth amp expansion

About Future Asia Ventures Future Asia Ventures is an innovation advisory amp research firm Through our research and services we help new ventures grow and connect investors with innovative opportunities We serve private investors foundations and corporations around the world

wwwfutureasiaventurescom

Falguni Desai

Founder amp Managing DirectorFuture Asia Ventures

4 Innovation is inherently wastefulSeveral companies are still sitting on the sidelines While our

latest research has uncovered that 116 companies around the

world have set up corporate accelerators and several dozens

have launched incubators and labs the majority of large

companies are not engaged in this type of open innovation

They might be wondering whether an innovation program will

generate returns The answer is no not in the short term But in

the long run yes Innovation creates waste Companies wonrsquot

solve the problem on the first try Several partnerships and

investments will fail Incubated ideas may not scale and those

looking to try their hand at innovation should swallow this pill

and be prepared for failure To be good at innovation you need to

try things and then quickly stop them when they donrsquot work and

quickly try again

5 The endgame is collaboration not conflictI still see articles which predict a future without banks how

disruption will cause banks to fail and shut down The reality

is banks play a very important role in the lending infrastructure

of most modern economies Peeling back through fintech

history the innovations that survived and scaled were the

ones that worked with banks not against them In the 1990s

online stock brokers appeared on the scene Stock exchanges

and brokers didnrsquot disappear but they now operate differently

Today fintech marketplace lenders offer loans more efficiently

to retail customers The capital for these loans comes from

traditional banks and large asset managers Banks brokers and

asset managers wonrsquot disappear instead their processes and

the customer experience they offer will change dramatically The

moral here is that new fintech services will become part of the

overall financial infrastructure Fintech startups will eventually

grow into companies that are counterparties and partners to

banks not necessarily competitors Of course not all of them

will succeed but the future of banking will be formed through

collaboration

VISIT OUR ENHANCED ONLINE COMPANY PROFILES DATABASE

ALL COMPANY PROFILES IN THE B2B PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING MARKET GUIDE ARE

AVAILABLE ONLINE IN AN ENHANCED COMPANY PROFILES DATABASE COMPLETE WITH KEYWORDS COMPANY LOGO

AND ADVANCED SEARCH FUNCTIONALITY

wwwe-invoicingthepayperscom

ALL COMPANY PROFILES IN THE B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE ARE



The Power Of Data amp Traceability


1 Idea of exchanging invoice statuses + benefitsIncreasing financial pressure forces firms to focus on their cash

positions For this reason effective Working Capital Management

is a high priority There are different ways to improve the cash

position of companies in supply chains ndash and here comes one

of them exchanging invoice statuses positively influences the

cash position of selling parties After the purchase of a product

or service the seller sends his buyer an invoice and waits for

payment The unpredictability of the moment of payment leads

to significant challenges for sellers in managing their cash

positions Smaller companies (SMEs) particularly struggle with

liquidity shortages and unpredictable cash flows Payment

deadlines vary between 30 and 90 days and buyers tend to use

their free liquidity as long as possible In the case of long payment

deadlines sellers may want to have their receivables financed by

financiers The answer to this problem is offered by the Status

Based Receivables Finance Model (SBRF) a track and trace

solution for electronic and paper-based invoices The model

allows the actors to gain more insight in the invoice statuses

After the buyer grants the sellerrsquos financier permission to access

the invoice status the financier can lsquotrack and tracersquo the invoice

in the buyerrsquos ERP system It allows financiers to operate

more effectively and efficiently with reduced risks and lower

financing costs when providing invoice based finance to sellers

For sellers planning incoming cash flows becomes easier

because the provided transparency enables them to further

optimise their working capital position But there is even better

news the SBRF model allows for process efficiencies and better

risk management for all actors in the supply chain A detailed

overview of the various benefits is provided in the table below

2 Need for standardisationStandardisation is the key to successful processes and a

profitable outcome ndash in this case the working capital optimisation

Where does the need for standardisation originate

The SBRF Model directly connects to the financing instrument

Supply Chain Finance (SCF) While the seller waits for his payment

after the delivery his liquidity is reduced hence this becomes a

major problem for SMEs Due to their small size they often suffer

from poor borrowing terms even if they would urgently need

access to capital

SCF releases liquidity and creates benefits for all actors along

the supply chain The seller obtains a credit from a financier

against the buyerrsquos credit rating for the period of the payment

and benefits from the buyerrsquos credit conditions Normally the

process is automated through an electronic platform which

can onboard a variety of suppliers (and financiers if needed)

potentially combined with e-invoicing

Yet due to the number of SCF providers there is a heterogeneity

of concepts and technological solutions which leads to

inefficiency and process disruptions Additionally there is an

untapped potential of SCF because of insufficient dissemination

and misunderstanding of the concept These difficulties will

only be dissolved by standardisation and clear definition of

concepts processes and technologies Possible benefits of

standardisation are cost advantages facilitated implementation

and compatibility of technology and processes

E-invoicing as a prerequisite of SCF is already subject to

standardisation efforts throughout Europe reflected by different

guidelines and directives Even so a great deal remains to

be done The SBRF Model is one step in the right direction

towards standardised processes of SCF and working capital

optimisation

Track and Trace of Invoices for Working Capital Optimisation

Fraunhofer Institute

1 Better risk assessment2 Process efficiency and

resulting lower costs3 New financing markets

because it becomes economically viable to finance sellers based on smaller invoices

1 Better cash flow forecasting visibility and working capital optimisation

2 Less operational debtor handling

3 Better access to financing instruments faster more choice easier

1 Less manual handling of incoming invoice inquiries

2 Improving financial stability of the supply chain

3 Optimise internal procurement and invoice approval processes

4 Possibility of later payment or discount

Financier Seller Buyer


About Prof Dr Michael Henke Prof Dr Michael Henke completes the board of directors of Fraunhofer IML as new director of the section Enterprise Logistics and he also holds the chair of Enterprise Logistics at the faculty of Mechanical Engineering at TU Dortmund University His research focuses lie among others on the area of eg management of the Industry 40 purchasing and supply management supply chain risk management and financial supply chain management

About Fraunhofer Fraunhofer IML is said to be first address for all questions with respect to holistic logistics the employees work on all fields of internal and external logistics Made-to-measure arranged teams create cross-industry and customer-specific solutions in the area of materials handling warehouse management supply chain management simulation supported business and system planning and also traffic systems closed loop economy resources logistics building logistics and e-business

wwwimlfraunhoferde

Share this story

3 First steps were takenInnopay an e-business consultancy firm from the Netherlands

the Dutch factoring company lsquovoldaanrsquo and a client of voldaan

developed the SBRF Model in 2015 Within the scope of the

Workshops on Standardisation in SCF by the Supply Chain

Finance Community Innopay and the Fraunhofer Institute

of Material Flow and Logistics (IML) presented the SBRF

demonstration since November 2015

The ldquoProof of Conceptrdquo demonstrated the financier tracking the

status of an outstanding invoice electronically He gained insight

into the progress of the invoice and could assess the associated

risks

During the Workshop Series the model as well as development

improvement and extension potentials have been discussed

actively by the participants European experts on SCF and

e-invoicing Subjects to the discussions have also been technical

specifications and the integration with other solutions

4 More Proofs of ConceptIn the first half of 2016 the SBRF concept will extend to more

financiers sellers buyers and ERP solutions across Germany

and Italy at least The well-established network of the SCF

Community and its members will provide a basis for the

development and geographical extension

The practical integration with e-invoicing and SCF platforms and

the standardisation along the dimensions of Legal Operational

Functional and Technical dimensions will be investigated in detail

For Germany a planned SCF event at the House of Logistics

and Mobility (HOLM) in Frankfurt organised by the Fraunhofer

IML and Innopay makes an important contribution to the Proof

of Concept The event is scheduled for summer 2016 and will

include workshops on the SBRF Model Moreover further

aspects of SCF standardisation according to the SCF research

focus of the Fraunhofer IML will be covered

Prof Dr Michael Henke

Director Enterprise LogisticsFraunhofer


Turning Financial Messaging Data into Business Profit ndash the new challenge for financial institutions

INTIX

Long-term considered an impenetrable space dominated by

a few the financial services industry is currently riding a giant

wave of entrepreneurial disruption disintermediation and

digital innovation Recent developments such as the regulatory

pressure as well as the criticality of business intelligence and

customer experience are impacting banks more than ever

Financial Institutions (FIs) are caught between increasingly

strict and costly regulations and the need to compete through

continuous innovation The competitive position of incumbent

institutions is at stake

Todayrsquos challenges determine tomorrowrsquos needsFIs face a series of strategic challenges that will determine their

own future

1 Regulatory compliance ndash between 2008 and 2013 US banks

paid more than USD 100 billion in penalties and settlements

2 Business intelligence ndash turning data into a competitive advantage

is nowadays seen as the Holy Grail However only a few

succeed to become masters of their own data and conquer Big

Data problems

3 Customer service ndash Big Data and advanced analytics offer a

transformative potential to predict the ldquonext best actionsrdquo and

understand customer needs

4 Risk management ndash regulatory bodies now require information

management to be a foundational effort within all FIs for pur-

poses of risk management however the responsibility around

data quality is fragmented and unclear within the organisation

How will FIs be able to face such obstacles and in a cost effective

way Which strategy will help them survive (How) could technology

support the new needs in this journey

Digitisation and regulatory compliance are transformativeThe Financial Services industry faces an unprecedented accele-

ration of digitisation and regulations which leads to a series of

major impacts

1 The increased digitisation produces new electronic information

digital processes data semantics and structures as well as

new IT systems within FIs

2 The extended digital environment leads to higher complexity

for staff to find and interpret information given the growing

number of data sources

3 As critical information is siloed enterprise-level reporting

decision-making customer service and performance

optimisation are impaired

4 Working across data sources can be tedious or impossible

given the variety of data semantics in use

5 The regulatory mandates make effective information manage-

ment no longer optional As per Basel Committee on Banking

Supervision (BCBS) 239 regulation Systemically Important

Banks (SIBs) must prioritise addressing gaps in their Risk

Data Aggregation and Reporting (RDAR) capabilities Without

these senior management is unable to obtain an accurate and

in-depth picture of the risks the bank faces

6 A siloed approach to information management raises non-

compliance risks Many banks continue to lack the high-quality

data capture and aggregation processes full compliance requires

Information whether based on structured and unstructured data is

increasingly seen as the lifeblood of the business Regulatory bodies

identified this too and now require information management to be a

foundational effort within all FIs for purposes of risk management

and compliance reporting This has led FIs to recognise their need

to become information-centric

The information management challengeGiven the continuous evolution of their IT infrastructure and

adoption of digital processes FIs deal with a myriad of systems

and applications all having their own software technology

access method security user interfaces data semantics and

structures messaging formats etc This situation does not

simplify the work of the business and operations teams who

have to face such complex environment and rely on a series of

unconnected tools to execute their daily jobs Consequently

activities requiring access to customer and transaction details

as well as history and statistics are severely slowed down

Examples include handling of customer enquiries reporting on

transactions towards regulators reporting on SLAs to clients

management information reports and so on


Share this story

FIs must consider those challenges strategically

bull First and foremost they must elevate information to its deserved

status of strategic asset This will help ensure that data is

actively managed on enterprise level for its embedded value to

be realised

bull They also need to equip themselves with the right technology in

order to turn information to their advantage

However some barriers exist

bull Integration with legacy systems many legacy systems make it

difficult to extract data and may not be best suited for Big Data

technologies

bull Connecting data silos there is no uniform view of data and most

organisations have not integrated disparate data sources given

the complexity of the task

Data integration tools are becoming key to connecting various

data sources and data sets and delivering on the promise of

information or data management

FIs become master of your dataBy conquering Big Data challenges FIs will be able to draw a

competitive advantage through enhanced strategic decision-

making improved customer service and effective risk management

Information management technology and governance are

key to break down the organisational silos that typically exist

within financial institutions to provide a complete picture of an

institutionrsquos financial transactions and client information across

a myriad of sources Not only does this make it easy for FIs to

respond to the increasing requirements for compliance and

reporting it also provides the opportunity to turn such data into

valuable insights and information for the customersrsquo benefit

Information management tools will help financial institutions

address a series of strategic objectives including regulatory

readiness and responsiveness enhanced strategic decision-

making faster customer service effective risk management

In sum FIs that become master of their own data will benefit from

a competitive advantage which they will turn into business profit

About Andreacute Casterman Andreacute Casterman is Chief Marketing Officer at INTIX and a Member of the Banking ExCo of the ICC During the past 5 years Andreacute was SWIFTrsquos head of the corporate amp trade markets in charge of strategy governance and product initiatives Andreacute Casterman has two masterrsquos degrees from VUB and a masterrsquos degree from ICHEC

About INTIX INTIX helps financial institutions and corporates address financial data management challenges in four strategic areas regulatory compliance business intelligence customer services and risk management INTIX helps its clients retrieve consolidate and reconcile any type of financial messaging data and protects them from any IT complexity and obsolescence issues

wwwintixeuinfointixeu

Andreacute Casterman

Chief Marketing OfficerINTIX

Commercial Payments


Gaining Management Support for Your P-Card Programme

NAPCP

Achieving buy-in of the card programme especially by

management is a frequently cited challenge by the NAPCPs

audience The concern is justifiable Lack of buy-in can result

in never getting a programme implemented having a static card

programme or the elimination of the programme altogether

Whether you are considering implementing a new programme

or expanding the current one there are several questions to

address that can help in preparing your case to management

bull What are you seeking buy-in for and from whom Do you want

to ldquosellrdquo the existing P-Card programme to a new manager or

do you want to propose programme expansion

bull What is the rationale for your goal Management will only buy

into something that benefits the organisation and is supported

by facts including a cost justification

bull How does your goal support the goals of the organisation or

solve an organisational challenge Management decision-

making is driven by accountability for goals and the ability to

resolve issues

bull Are you aware of common objections to P-Card programmes

1 Data from the 2014 Purchasing Card Benchmark Survey Results by RPMG Research Corporation a report based on more than 3123 survey responses from end-user organisations

bull Who are the stakeholders There is nothing more defeating

than trying to move an idea or goal forward then learning that

someone with ldquoveto powerrdquo was left out of the discussions

inadvertently List who should be involved and why They might

provide good input in support of the card programme andor

express concerns such as the common objections listed above

The Business CaseThe next step is to create a solid business case based on the

answered questions above as well as other common business

case elements Include

bull statement of purpose (what you are seekingmdashyour goal)

bull where you are today (current metricsKey Performance Indicators

(KPIs) and how they compare to industry benchmarks) where

you want to be and ldquowhy nowrdquo

bull how your idea aligns with organisational goals

bull input from stakeholders plus common objections industry-wide

(if different from stakeholder input) address any concerns and

objections with facts

bull cost justifications to support the value proposition such as

anticipated andor actual process savings reductions in full-

time equivalents (FTEs) especially within the procurement and

or accounts payable departments and other hard- and soft-

dollar savings

bull implementation plan if applicable (eg for programme expansion)

Present cost saving benefits such as the cost of traditional

cheques versus P-Cards If your organisation has not completed

an internal process cost analysis use the NAPCP average

process costs shown below

1 As specified within the 2014 Purchasing Card Benchmark Survey Results by RPMG Research Corporation

2 Based on average monthly card spend of USD 1M and average transaction size of USD 559 per the results of a 2015 NAPCP poll

If expanding an existing programme it is important to consider

the value your card provider can add to this process They can

provide an analysis of your accounts payable vendor filemdash

identifying those vendors who accept card payments


Share this story

Working with the ldquolow hanging fruitrdquo can help your organisation

reap immediate benefits The larger ticket transactions can be

moved to card-type payments as well with the most popular

being a virtual or electronic card payment method

Continue to Provide Results-Driven CommunicationIt is important to relay results and successes to management

Use the following keys to successful communication

bull Be brief by limiting communication to a one-page summary

Put conclusions firstmdashgive highlights up front and supporting

detail second

bull Title the document presentation or email subject line with a key

message (eg ldquoP-Card Program Saved USD 4M in 2015rdquo versus

ldquoP-Card Program Report Attachedrdquo)

bull Focus on the facts Show numbers as often as possible and

summarise whether the numbers meet fall below or exceed

expectations Then explain Verify numbers with other team

members to build a coalition of support and ensure that you

have the complete picture

bull Facts and figures must be formatted consistently from one

communication to the next allowing for easy comparison

bull In verbal and written discussion keep your presentation analytical

bull If asked by management to give results ldquoon the flyrdquo synthesise

the key points for management into three to four concise bullet

points Add recommendations or alternative courses of action

if you have time Stay ahead of management requests by

monitoring your KPIs frequently

bull Ask to be part of upcoming meetings and do not be afraid to be

proactive rather than reactive

What if They Say ldquoNordquoExplore what could change a ldquonordquo into a ldquoyesrdquo When you are

ready to address the issue again with new insight go back to

your stakeholders It is generally okay to respectfully disagree

with management but as noted earlier ensure you have the

supporting documentation to make your point Finally know when

it is time to move on However moving on does not mean giving

up on the programme altogether It is still prudent to share the

status of the programme

About Terri Brustad Terri Brustad CPCP is the NAPCP Manager of Content Services Her previous experience includes 10 years in the Commercial Card industry mainly in the role of a public-sector P-Card Administrator Terri achieved the Certified Purchasing Card Professional (CPCP) credential in 2009

About NAPCP The NAPCP is a membership-based professional association committed to advancing Commercial Card and Payment professionals and industry practices worldwide The NAPCP is a respected voice in the industry serving as an impartial resource for members at all experience levels in the public and private sectors The 2016 NAPCP European Conference will be held in London on 23 June 2016

wwwnapcporg

Terri Brustad

Manager of Content ServicesNAPCP


Commercial Payments under the Scrutiny of New Technology

KAE

New technology and innovation are words typically associated with

consumer payments Whilst technology and payments continue

to converge in our consumer lives the pace of convergence and

innovation has accelerated in the commercial payments space

Recent innovations have impacted corporate payment behaviour

but are yet to truly disrupt commercial payments In this article

we call out three themes that hold the potential to disrupt the

payments space

Shared ledger technologies There has been increasing interest in shared ledger technologies

with many global financial institutions looking into its use as a

commercially viable tool eg for trade finance transactions for

more streamlined cross-border payments etc

Shared ledgers or blockchains are digital and publically open

records allowing transactions to take place without an inter-

mediary such as a clearing house The open source nature of these

ledgers allows corporates to trade directly with any counterparties

around the globe offering various cost and time-saving benefits

Uneditable records are also created and shared with anyone

associated with a lsquotradersquo to enhance control and transparency

The challenge for the industry is that wider adoption will impact

existing operating models as corporates come to expect faster

and lower-cost transactions This technology could also drive

disintermediation within the commercial payments space eg by

removing the need for the card payment schemes

Mobile Wearables amp BiometricsThe rise of the mobile savvy and the constantly connected

customer is forcing traditional providers to rethink how they

deliver commercial payment solutions to satisfy ever-changing

and increasingly demanding expectations

Mobility is a key word and mobile devices and wearable techno-

logy are ideal bedfellows People are increasingly mobile in both

their corporate and personal lives and expect technological

advancements to support this

Mobile and wearable technology not only provides a more

streamlined and frictionless payment experience but also offers

benefits such as more accurate employee location tracking

(helping to reduce fraud incidents and supporting an employerrsquos

duty of care)

The convergence of commercial payment solutions with mobile

devices is a salient trend and one that will remain at the crest of the

innovation wave We have already seen a number of mobile apps

being developed for commercial banking and commercial cards

being included as part of digital wallets ndash this is only the beginning

Wearable payment development has also gathered pace

be it wristbands smartwatches or NFC-enabled clothing

Device battery life (imposed by device size and current screen

energy consumption) data privacy and security remain key

barriers to wider adoption

Biometrics will become interwoven with mobile and wearable

technology Passwords can be broken and authentication will

shift towards identifiers like facial features fingerprint retina

heartbeat and vein recognition All of which could be performed

by a smartphone or wearable device

Although challenges remain surrounding data privacy and educating

corporate clients biometric technology will eventually help increase

payment security and provide more convenience when making

payments

Virtual cards Virtual cards or single-use accounts also have the potential to

disrupt the payments space Corporates travel companies and

governments increasingly understand the benefits these solutions

offer (real-time expense capture enhanced control security recon-

ciliation and reporting) and spend levels have skyrocketed in

coun tries where virtual cards are being effectively marketed

Growth has also been fuelled by the productrsquos success in unlocking

B2B and increasingly TampE spend that has traditionally been

captured by other payment solutions eg cash cheque etc


Share this story

Virtual cards hold the potential to disrupt the commercial

payments space on two fronts

1) Physical cards are likely to disappear

2) These solutions hold the potential to drive a step change in card

adoption and usage levels

The challenge for the industry is clearly communicating and

providing compelling evidence of the benefits that virtual cards

offer and ensuring sales teams are trained to sell the solutions

over and above traditional ones eg corporate cards To help

unlock the opportunities in underpenetrated industries such as

telco construction and healthcare etc issuers must develop

tailored solutions to cater for any idiosyncrasies and overcome

the card acceptance challenge

The FutureTechnology holds the key to disrupting commercial payments

and the growing FinTech movement will support this Traditional

commercial payment providers will look towards and work more

closely with FinTechrsquos as an alternative source of innovation to their

own product development and delivery functions The opportunity

for banks is to build and launch disruptive technologies more

quickly The challenge is picking the right FinTech(s) that will help

deliver scalable solutions In the short-term we expect issuers to

increasingly focus their attention on developing virtual solutions

and integrating these onto mobile and wearable devices

Stargazing into the future wearables will be the game changer

as mobility becomes ever more important Wearables will also

be the bridging technology for embeddables In the next 10-15

years embedded chips in humans could become a reality

We are increasingly connected and interact with technology in

our personal and business lives and embeddables are the next

logical step More sophisticated chips will soon replace wearable

technology such as payment devices and fitness bands and will

help us all get used to a more connected and augmented lifestyle

As a concept it is well aligned to payments Embedded and inner-

connected biometrics will enhance security and offer a more

seamless experience

The future looks bright for commercial payments but will not be

without its challenges

About Chris Holmes Chris leads various work streams across the Financial Services practice He has managed multiple global projects across the payments banking FinTech AltFi and tech industries His specialist skills are geared to NPD sizing and opportunity assessments benchmarking and best practice identification

About KAE KAE is a strategic marketing consultancy that has provided support to some of the worldrsquos largest payment and tech brands for the past 25 years Operating globally from a London HQ KAE has provided consulting and strategic advice in more than 50 countries across three core areas Insight Strategy and Analytics

wwwkaecom

Chris Holmes

Senior Vice President KAE

Trade amp Finance


Financing International Supply Chains An Idea Whose Time Has Come

Supply Chain Finance Terminology Drafting Group

Supply Chain Finance (SCF) was the subject of serious debate

among senior practitioners just a while ago Was SCF a

legitimate substantive new proposition in the financing of trade

and supply chains or was it a hollow marketing device aimed

at countering the threat of bank disintermediation as businesses

decisively shifted to trade on open account terms

The initial innovation and contribution of SCF were less in the

specifics of financing techniques and more around the shift

from a limited bilateral view of trade to a holistic network-based

view of trade based on complex ecosystems and commercial

relationships

The debate about the substance of SCF can now be put to

rest as its adoption grows and as the techniques of SCF are

increasingly recognised in both domestic and international

supply chains Whatrsquos more public entities in the UK the

Netherlands the US and elsewhere begin to embrace certain

forms of SCF to driving liquidity and affordable financing to the

globally important but typically underserved SME segment

Additionally the usage rates of SCF programmes and facilities

have grown significantly now reaching 80-90 or higher In

comparison programmes were once considered successful if

they exhibited usage rates of 30 or more

SCF development and adoption rates have varied significantly

by region and by individual institution be it a bank multilateral

ECA fintech or another market player and as a result a veritable

lsquomazersquo of definitions terminology and common parlance

developed relative to SCF Leading institutions effectively

developed their own terminology in the absence of anything else

in the market invested in marketing collateral and branding and

devised technology solutions on the basis of their techniques

and related nomenclature This extended to the point that it

has been difficult to engage in any discussion around SCF

without the need to pause and check on mutual understanding

(or worse progress a discussion or interaction only to later

realise that language has been a barrier rather than an enabler

of understanding)

Leading industry associations gathered over two years ago

and agreed that it would be valuable to begin the process of

devising a common set of global terminology around SCF

The Euro Banking Association Factors Chain International

ITFA (The International Trade and Forfaiting Association) the

International Factors Group (since merged) and BAFT (the

Bankers Association for Finance and Trade) came together with

the ICC Banking Commission to create and launch the Global

Supply Chain Finance Forum (GSCFF) Its global drafting team

and the steering committee were mandated to review existing

material develop and disseminate a draft set of definitions

circulate widely for comment and update to a final version which

was then to be the focus of a global advocacy campaign to drive

adoption by market stakeholders

The ldquoStandard Definitions for Techniques of Supply Chain

Financerdquo was launched at the 4th Annual ICC Supply Chain

Finance Summit Singapore under the auspices of the ICC

Academy The setting was particularly appropriate given the

educational nature of the publication and the reality that major

international supply chains today are at least partly anchored in

Asia where SCF propositions are expected to show significant

growth in the coming years

The focus of SCF in some areas thus far has been on what we

refer to in the Definitions as ldquoPayables Financerdquo to the extent

that this single technique has often incorrectly been referred

to as Supply Chain Finance Financial institutions as well as

non-bank providers have placed a significant priority on these

buyer-led structures with supplier onboarding being a common

challenge And yet we are seeing demand for the development

of end-to-end solutions across the procure-to-pay and order-

to-cash cycles with an increasing number of market actors

venturing beyond some of the familiar techniques to begin to

embrace for example distributor finance


Large supplier communities are based in emerging Asia

and Africa yet major economies like China and Indonesia are

experiencing great increases in disposable income and thus

engaging more on the consumer side of supply chains The

combined dynamics are shaping economic activity and flows in

ways that need a wider range of financing and risk mitigation

solutions including end-to-end SCF

Supply Chain Finance is defined as the use of financing and risk

mitigation practices and techniques to optimise the management

of the working capital and liquidity invested in supply chain

processes and transactions SCF is typically applied to

open account trade and is triggered by supply chain events

Visibility of underlying trade flows by the finance provider(s) is

a necessary component of such financing arrangements which

can be enabled by a technology platform

Source Standard Definitions for Techniques of Supply Chain

Finance 2016

Practitioners and financial institutions based in Asia are proactively

working to develop their SCF propositions in response to evolving

market demand and region-specific practices With ASEAN

integration progressing the Trans-Pacific Partnership advancing

and intra-regional trade growing in importance the central role of

cross-border supply chains and SCF in particular will increase

in the next several years as enablers of trade development and

inclusion

The Standard Definitions are a ldquoliving documentrdquo meant to evolve

with market practice the needs of clients financiers regulatory

authorities and others The next phase will focus on dissemination

education and advocacy in support of global adoption

This is the start of a journey that will only speed up in adoption

impact and importance SCF an idea whose time has come

About Alexander R Malaket A recognised specialist in international trade including trade and supply chain finance Mr Malaket has advised government international institution banking and corporate clients around the world developed and delivered training materials and seminars and authored numerous white papers briefing and policy papers and research reports on a variety of topics in international business finance and international development

About International Chamber of Commerce (ICC) The ICC Banking Commission is a leading global rule-making body for the banking industry It produces universally accepted rules and guidelines for international banking practice With 85 years of experience and more than 600 members in +100 countries the ICC Banking Commission ndash the largest commission of ICC the World Business Organization ndash has rightly gained a reputation as the most authoritative voice in the field of trade finance

wwwiccwboorg

Alexander R Malaket

PresidentOPUS Advisory Services International IncDeputy Head of the Executive CommitteeICC Banking CommissionChairSCF Terminology Drafting Group

Share this story


Improving Access to Finance for SMEs with the Open RFI Project

SCF Community

IntroductionFor a financial service that claims to have a tripartite win-win-win

value current market adoption of Supply Chain Finance (SCF)

is still in its infancy As the credit rating of the larger corporate

is leveraged for SCF solutions suppliers have faster access to

cheaper liquidity from invoices The large corporate can achieve

working capital benefits through payment term harmonisation

or it can reduce the COGS (Cost of Goods Sold) Despite clear

benefits the cost and complexity of onboarding small suppliers

have resulted in a slower uptake in this group of suppliers and

hence there has been little possibility to take advantage of the

benefits SCF can offer

The Open Request for Information (RFI) launched by the

SCF Community on behalf of a group of Dutch multinational

corporations invited over 30 vendors to show how they would

apply SCF solutions to smaller suppliers ndash those with volumes of

EUR 200000 and below Corporates recognise the importance

of SME suppliers and are looking for ways to improve their

access to finance This recognition is underlined by the support

of the Dutch Ministry of Economic Affairs for the Betaalmenu ndash

initiative in early 2015 which is aimed at injecting liquidity into

Dutch SMEs

The objective of the Open RFI was threefold 1) to provide

participating corporates with an overview of available SCF

solutions and solution providers 2) to facilitate structured

engagement between SCF solution providers and corporates 3)

to perform a structured analysis of the SCF market and available

solutions for SMEs This project allowed for direct comparison of

leading SCF vendors for the first time in history

Preparations for an SCF implementationThere are a number of things corporates should address before

starting with an SCF implementation Firstly the overall SCF

strategy should align with strategy on other areas such as

procurement finance and IT Next due to the multidisciplinary

character various internal departments have to be involved in

the setup and enrolment of an SCF program

Thirdly a spend analysis of the corporatersquos supplier base needs

to be made in order to support a clear and segmented approach

to offer selected suppliers the intended SCF solution Finally in

order to fully reap the benefits of an SCF solution the internal

processes have to be analysed focussing on the efficiency of the

procure-to-pay process

RFI process and preliminary resultsIn total over 30 vendors were invited to participate and eventually

23 completed the RFI ABN Amro Asyx C2FO CRX Markets

Flinqer GT Nexus ING Kyriba OpusCapita Orbian Oxygen

Finance PrimeRevenue ProQuidity Rabobank Remitia Riskco

Santander Taulia Terbit TradeShift Trefi Finance Tungsten and

Urica The RFI contained seven categories and participants were

ranked relatively in each category

1) Qualifications and Strategy The proposed SCF solution had

to be well proven in the market and therefore participants

were required to give insights of their track record

2) Solution Scope Vendors should be able to onboard suppliers

in various countries and currencies and work together with

other liquidity providers Half of the vendors claimed to have

a global solution covering all currencies while the rest focused

more on Europe

3) Platform Technology Vendors had to elaborate how their

SCF platform interacts with current IT systems and P2P

processes on the corporate side Almost all platforms were

accessible online flexible to adapt to current infrastructure

and offered manual to fully integrated options to connect to

the corporatersquos ERP

4) Implementation and onboarding Given the scope of the

RFI (small suppliers) fast onboarding was deemed crucial to

participating corporates Differences exist between vendors

in terms of availability of online resources KYC and due

diligence and administrative requirements


5) Transaction Volume Availability of both funding and platform

is an important factor in selecting a solution provider The

benefits and pitfalls of various sources of funds and structures

are examined and collated

6) Accounting amp Legal Maintaining trade payable status is

important for corporates and accounting regulations should

be considered Each vendor responded with its legal structure

to reassure no reclassification issues would arise

7) Incumbent SCF provider Since the majority of large buyers

have existing SCF programs in place vendors were asked if

and how they would be able to co-exist All vendors indicated

that working side-by-side would be possible but not all of

them had prior experience with this matter

Outcome of RFI projectThe relative ranking combined with a weighting of the importance

for each category by the supporting corporates has generated

the final shortlist The SCF Community named C2FO ING Orbian

PrimeRevenue Santander and Taulia as the six vendors in its

lsquoOpen RFIrsquo project All six have presented their responses to the

Open RFI during the SCF Community Forum in Amsterdam on

18th November 2015

By gathering and assessing available solutions in the marketplace

the SCF Community has improved transparency for its corporates

by providing an overview of SCF solutions and facilitating

engagement This initiative contributes to the Communityrsquos

goals in developing knowledge on SCF while simultaneously

increasing adoption and standards in the practitionerrsquos field

The whitepaper that contains both a detailed analysis of the

SCF market as well as a checklist for corporates interested in

offering their own SCF solution can be downloaded from the

wwwscfacademyorg soon

About Matthijs van Bergen Matthijs currently holds

a position as researcher SCF at Windesheim and

is responsible for developing business cases for

Corporates and for the project management of Open

RFI He studied Supply Chain Finance and is an

experienced independent consultant for over 5 years

About Steven van der Hooft Steven gained extensive

experience in the field of Supply Chain Finance

through roles as director banking at Inchainge senior

management consultant at Capgemini Consulting and

while working at ING In 2015 he founded Capital

Chains a company that specialises in Training amp

Consultancy on Financial Supply Chain Management

issues for both banks as well as corporates

About SCF Community The Supply Chain Finance

Community is a not-for-profit group for all those

involved in supply chains manufacturers transport

companies banks consultancies technology

providers and academics Its mission is to share

experience best practice and new research linking

across finance treasury supply chain operations

logistics and procurement

wwwscfcommunityorg

Matthijs van Bergen

Researcher SCF Windesheim

Steven van der Hooft

CEOCapital Chains

Share this story


If Supply Chain Finance is Supplier-Centric Financial Supply Chain is Customer-Centric

Magnus Lind The Talent Show ndash Supply Chain Finance

Fintech is not only disrupting banks itrsquos disrupting corporate

finance as well At The Talent Show ndash Supply Chain Finance

conference in Malmo Sweden in April of 2016 both corporates

and vendors discussed the significant changes we can expect in

the way we engage with suppliers and customers in the future

The Talent Show highlighted the increasingly popular Supply

Chain Finance (SCF) solutions as one essential ingredient to

cater for the unbalanced capabilities of bank financing in the

corporate sector Investment graded companies enjoy excellent

access however SMEs and sub-investment grade companies

still suffer Change is nowhere on the horizon

SCF is one remedy to support the first tier suppliers of very large

customers with fair priced and sufficient financing SCF has

many benefits and the solutions have matured and now

provide reliable backbones for financing of approved invoices

Yet despite all the advantages of SCF it only solves a limited

amount of challenges in the whole corporate supply chain At

The Talent Show we discussed the supply and demand chain

holistically and mapped SCF as a subsection of the financial

supply chain (FSC) The FSC is much broader in scope includes

all tiers of suppliers and also the full demand chain With SCF as a

base we need to include second and higher tier suppliers and our

financial processing and the customers into the mindset If SCF is

supplier-centric FSC is customer-centric

The champion to implement SCF is often the treasury department

whereas it is procurement that eventually owns and runs the

programme Wersquove detected the CPO (Chief Procurement

Officer) usually has significant acumen to drive other supply

chain initiatives with his or hers combined customer and supplier

relations What the CPO lacks in financial skills are many

times balanced through a sense of urgency to understand the

rationalisation potential and how it improves the overall business

At the Show we heard about initiatives to bridge stakeholders

over the supply chain with treasurers and procurement actively

working together Anthony Buchanan Treasurer Procurement at

SABMiller gave a much-appreciated presentation of how the two

departments work together to build a sustainable chain for both

the large and the small suppliers

We heard fintech leaders introducing their solutions over the whole

FSC Taulia on supplier finance SAP Ariba on supplier networks

e-invoicing and their new partnership with PrimeRevenue We heard

Basware introduce ldquocorporate financial social responsibilityrdquo and

its new financing service Kurt Cavano from GT Nexus presented

ways to connect the physical supply chain with the financial one

and finally Danny Aranda from Ripple shared how blockchain is

taking over as the main rail for payments Gerard Chick Chief

Knowledge Officer at Optimum Procurement gave an appreciated

endnote at The Talent Show

We are continuously improving our abilities to adapt quickly

Being big isnt enough to sustain when new competitors are

unbundling large businesses in almost all industries The need

for large corporations to think and act more entrepreneurial is

imperative Peter Carlsson recent CPO at Tesla explained how

Tesla is driven by a few group-wide targets at a time providing

high speed over ground Many large companies have too complex

strategies and objectives even creating conflicting behaviour in

their own organisations Enterprises have to rethink their models

of management to fight off the attacks or they risk being killed

by a thousand cuts from a multitude of new entrants especially

if they are organised to fight the single cuts from their main (big)

competitors


Share this story

The EVP and CFO at Turkcell Murat Dogan Erden proved

in his keynote that even mature companies can adapt quickly to

game changers Turkcell is a dominant telecoms operator that

has successfully managed the transition from a pay-per-minute

market through providing world leading surf speeds content

and services Turkcell is also exploiting its credit management

competence to expand into consumer finance Turkcell will use

its market access through all the connected devices

Developing the FSC doesnrsquot only consist of cutting costs and

lead times It also enables expanding the core business offering

with financial components

About Magnus Lind Magnus Lind is co-founder of The Talent Show He has a background as an international business executive in Europe SE Asia and North America and he has founded companies in 7 different countries where he acted as CEO board director and investor The Talent Show puts innovation and disruption above case studies and legacy thinking

About The Talent Show The Talent Show is a corporate driven event focusing on the whole corporate Financial Supply Chain (CFSC) and how it links to the physical chain The audience consists of CFO and CPO supply chain treasurers and IT Participants include Sandvik Turkcell Port of Rotterdam Abengoa Octal Arriva DONG Energy Ericsson and SABMiller

wwwsupply-chain-financerocks

Magnus Lind

co-founderThe Talent Show


Supply Chain Finance Time for SMEs to Take Position

Anita Gerrits

For a long time the deployment of supply chain finance (SCF)

was seen to be the domain of large corporates only but times

are changing Nowadays large SMEs are also able to reap the

benefits of innovative ways to free up liquidity reduce working

capital and approve their ROI

Imagine an SME company supplying goods to retailers and a

significant part of its turnover is achieved with only a few large

customers The DSO has increased dramatically over the past

few years as these retailers have increased their payment terms

to 60 or even 90 days Some of these customers have a reverse

factoring program in place but donrsquot offer access to all their SME

suppliers some donrsquot have a program in place The margins in

the business are tight and although the suppliers are begging

for early payments extending the terms with them seems to be

the only way possible to fill the working capital gap What other

options does this company have

One of the options is to consider Receivables Finance (RF)

This solution allows the company to sell open invoices (receivables)

of customers with a good credit standing to a third party on a non-

recourse basis As this is classified as a true sale of receivables

whereby the default risk on the customer gets transferred in full

to the third party that buys the invoices the receivables position

(DSO) will decrease with the amount of invoices sold The discount

paid for early payment is based on the creditworthiness of its

customers and presuming these are healthy these rates are

attractive For instance this is only a fraction of what traditional

factoring solutions would cost The other benefit is that the

company selling the invoices has full control over what and when

they sell Flexible on-demand access to cash is what it delivers

Although his the creditworthiness of the customer is key the

customer is not directly involved in the transaction and oesnrsquot

even need to be made aware of it As the solution carries the word

ldquoFinancerdquo in its name it might suggest that RF is a loan or a specific

type of debt Neither of them is the case What it boils down to is

that the seller gets upfront cash on receivables and not just 80

of the full invoiced amount but up to 95 PrimeRevenue one of

the leading SCF solution providers successfully implemented this

innovative solution for a wide range of clients worldwide

With the current interest rates it doesnrsquot make much sense to

free up cash to put in on a savings account where the return

is zero or even negative Freeing up cash enables companies

to take advantage of (investment) opportunities to increase the

ROI thereby improving their overall financial healthiness In

a low-margin business environment offering a program with

attractive early payment discount terms to your suppliers is a

way to improve your gross margin and generate a high return

on excess cash And yes working capital increases but less

than the decrease that was generated on the receivables side

so in total working capital is being reduced and your balance

sheet total is shortened Dynamic discounting is one of the

Payables (Finance) solutions that is growing in popularity in the

SME world As banks and solution providers have lowered their

entrance barriers this solution is now within reach of a larger

part of the business community The benefit for the supplier is

that he reduces his working capital position (DSO) and gets paid

earlier at an attractive discount below its WACC to ensure a

better ROI

Another option for the SME is to offer an SCF (read Reverse

factoring) program to selected suppliers In that way there is

no impact on the working capital position of the buyer in case

the payment terms remain unchanged or alternatively when

terms are extended the payables position will increase and so

working capital decreases The good news is that some banks

and platform providers indeed are starting to offer large SME

companies to set up their own SCF program The downside

however is that the discount rates the funders charge for

medium-sized companies are fairly high in comparison to the

rates for big creditworthy corporates This can be explained

mainly by the sheer purchase volume of big corporates versus

medium-sized companies the size of the SCF program is thus

of a different order of magnitude Whatrsquos more the risk profile of

SME companies is often rated relatively high in comparison to

corporates which has a significant impact on the risk premium

component of the total discount rate


Share this story

Some banks and platform providers offer both Dynamic

Discounting as well as SCF with the option to switch between

the two might an opportunity arise for the buyer to invest its cash

for other purposes than to prepay its suppliers A bank will then

be brought in to take over the funding

All in all with all developments in the SCF market it would make

sense for SMEs to explore the potential benefits of SCF for the

business they are in Having said that SCF awareness is still

not very widespread amongst SMEs despite several initiatives

to change that for the better What a pity In the end there is

nothing to lose and everything to gain

About Anita Gerrits For the past 7 years Anita has been a strong believer in and advocate of the concept of SCF She provides consultancy support in this exciting relative new area of finance She also organises workshops acts as guest speaker and trainer to business management as well to students to create awareness and understanding of this topic It all began in 2009 when she played a leading role in achieving a cash flow turnaround of the European Consumer Business of Kimberly-Clark through a massive reduction in working capital She has a corporate background studied business economics credit rating advisory and business valuation

wwwg-raybiz

Anita Gerrits

Supply Chain Finance Specialist

Follow on Twitter Tweet aboutExchangeSummit EXCS16

From E-Invoicing toSupply Chain Financing

October 10 and 11 2016Barcelona Spain

Exchange Summit with 2 major E-Invoicing events in 2016

June 7 and 8 2016Orlando Florida USA

100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on

wwwexchange-summitcomfree100


Key topics 2016

bull E-Invoicing entering a new era ndash global market development and forecast

bull E-Invoicing from a corporate and governmental perspective

bull Implementing tax compliance in a paperless world

bull Compliance and fraud prevention within E-Invoicing

bull Driving forward ARAP and end-to-end P2P automation

bull Global standardisation and status of E-Invoicing interoperability

bull Best practice in onboarding customers to E-Invoicing

bull Supply chain financing ndash new opportunities and challenges

wwwexchange-summitcom

Within our two major E-Invoicing events in 2016 you will

bull network with more than 500 participants

bull meet experts from over 40 different countries

bull evaluate solutions from 50+ service providers

bull benefit from exclusive keynotes best-practices and discussions

Anzeige_EXC_Paypers_Layout 1 14042016 1530 Seite 1

E-invoicing


Cross-border Invoicing ndash The Real Challenge For Multinational Projects

Comarch EDI

Global approach with local adjustments Nowadays a significant majority of enterprises cooperates with

foreign business partners Whatrsquos more an increasing number

of organisations have been changing their document flow from

paper to digital formats to optimise processes in the supply

chain Thus there has been growing demand for solutions

enabling onboarding of partners worldwide exchanging the

whole set of messages in the supply chain (order-to-cash

procure-to-pay) and guaranteeing legal compliance project

management and local support Letrsquos explore the electronic

invoicing process in particular since it is an essential part of the

efficient B2B collaboration

Various legislations in forceIn Europe the Council Directive 201045EU has been

implemented in the Member States in 2013 which treats paper

and electronic invoices equally Also it is widely known that

each taxable person shall determine the way to ensure the

authenticity of the origin the integrity of the content and the

legibility of the invoice

However each Member State defines its rulings on electronic

invoicing and in spite of progress even within the EU there are

significant differences For instance in Portugal the taxable

person has to use certified invoicing software (assuming the

annual turnover of more than EUR 100 000) What is common

for both Portugal and Hungary is that the solution should be able

to present the data for audit purposes in the countryrsquos defined

SAF-T formats When considering the form to assure authenticity

and integrity besides business controls EDI and electronic

signature should be considered Then local requirements differ

for outsourcing of invoice issuance (unilateral or bilateral

written with some content requirements) notifications of tax

administration the obligation of EDI agreement based on EU

1994 Recommendation system documentation describing

software and procedures to name only a few

In the archiving area the unification is even lower Besides various

retention periods and tax authoritiesrsquo notification obligation Italy

requires an invoice preservation process France has lsquopartner

filersquo and lsquosummary listrsquo functionalities while in Germany the law

introduces three access mechanisms known as Z1 (direct access

to electronic data) Z2 (indirect) and Z3 (through the transfer of

extracted data)

Challenges to approach just outside EU bordersAssuming that all peculiarities were analysed (mostly thanks

to the EU documentation available in many languages) and

technical design and implementation were done yet even within

Europe further adjustments are needed For instance take into

consideration Norwayrsquos restrictions of storage Switzerlandrsquos

requirement for the service provider to be registered in the local

commercial register and the fact that electronic invoices have to

be ensured by electronic signature

Of course the European model called post-audit does not

rule worldwide Beyond the EU borders the regulations are

more complicated In Turkey or Russia there is a clearance

model implemented in which an electronic invoice must be

sent to the tax administration or licensed certified providers for

authorisation before during or just after issuance as an original

tax invoice LATAM has implemented the model and observes

high penetration of electronic invoice usage

MILLION DOCUMENTS

500were transmitted in 2015

Capacity of up to

400 DOCUMENTS PER SECOND

12LANGUAGESapplications available in 17 languages

Service Desk in

confirmed by tests carried out by an independent institution

ACTIVE USERS FROM

40 COUNTRIES

50 000 PROCESSEDDOCUMENTS

998

in less than30 seconds


Share this story

Click here for the company profile

Thus the cross-border invoicing issuance for companies

with subsidiaries worldwide is a real challenge where the law is

applicable (ie country of establishment place of VAT registration

transport invoicing goods or services)

Electronic invoice still on the riseDespite the legal and technical obstacles enterprisesrsquo awareness

of process automation with electronic invoicing and cost

reduction has been steadily increasing Most of them would take

the decision to start e-invoicing shortly if the legislation would be

clearer and standardised On the other hand the governments

are aware of the scale of the VAT fraud and are looking for tools

to seal the system ndash unfortunately each country is trying to find

its own way

However it is highly unlikely that the EU will implement the

clearance model there are several initiatives to speed up

the process The Member States decided to organise multi-

stakeholders forums to implement a European Standard for

e-invoicing (expected in 2017) and increase the interoperability

among service providers Hopefully the Directive 201455

EU on electronic invoicing in public procurement will prove to

be a significant milestone resulting in the mass adoption of

electronic invoices in the structured form (not PDF invoices)

and public authorities will realise the benefits of e-invoicing and

hasten the implementation of common understandable and

unified legislation on cross-border e-invoicing In a nutshell

the stage of market education and convincing towards adopting

automated invoices processing is coming to an end Most of

the enterprises have launched or consider the implementation

of e-invoicing at a country level in the short term Currently the

biggest challenge is to enable the smooth extension of their

projects on the transnational level Finding a service provider with

vast international experience is essential Comarch EDI enables

compliance with all local legal requirements Its membership

in organisations such as the GS1 or the European E-Invoicing

Service Providers Association (EESPA) guarantees that the

company is a reliable partner Comarch EDI has cooperated with

GS1 and EESPA for many years in several countries to make

sure that our services are of the highest quality and the solution

is compliant with national and international requirements

About Bartłomiej Woacutejtowicz He has over 10 years of experience in the field of B2B communication in the supply chain Initially responsible for the EDI market development in Southern and Central Europe he is currently responsible for the development of Comarch EDI portfolio

About Comarch EDI Comarch EDI is a B2B platform which provides a competitive advantage by a fast and secure data exchange with business partners The solution provides the automation of data processing throughout the supply chain from the procurement process through the logistics to invoicing and payment processing

wwwcomarchcom

Bartłomiej Woacutejtowicz

Product Development ManagerComarch EDI


Why lsquoOpenness Should Be The 1 Selection Criteria for Any E-invoicing RFP Process

Simplerinvoicing

In the previous editions of this report I talked about the

opportunities e-invoicing brings in supply chain finance and

streamlining payments and collection processes I also talked

about strategies for businesses to adopt e-invoicing on a

large scale Whatrsquos more I spoke about the EU directive that

makes e-invoicing to (semi-) governments mandatory as of

October 2018 In the past year numerous driving forces pushed

e-invoicing forward The most important one however was the

high interest from e-invoicing providers and ERP and accounting

software to collaborate platforms are increasingly sharing data

(such as invoice data) with others through interoperability

Yet as we can see in the reports from Billentis lsquotruersquo e-invoicing

adoption rates (counting only full XML invoices no PDFs) are

still below 15 in most European countries The reason is

that companies have not fully embraced the concept of open

e-invoicing Open e-invoicing requires a different view from

e-invoicing service providers but also their clients the business

partners

The move towards open e-invoicing has one major benefit for

trading partners it eliminates the need for onboarding them on

your e-invoicing platform by enabling the exchange of invoices

using their own software The result increased reach ie a larger

number of suppliers that can send e-invoices to you as a buyer

hence better business case Plus extent is one of the key success

factors in grasping as many trading counterparties as possible

A typical lsquoopenrsquo service provider has numerous interoperability

agreements with other service providers Some of them have

over 100 agreements The ultimate form of openness for an

e-invoicing service provider ERP or accounting software provider

is the adoption of PEPPOL a protocol for the secure exchange

of invoices It is the most far-reaching way of connecting with

the largest base of your suppliers against minimal cost You

can also describe PEPPOL as a standard API defined by the

industry of e-invoicing ERP and accounting software vendors

for exchanging invoices

The lsquoclosedrsquo service providers typically embrace the paradigm

that all partners have to be on-boarded on the providerrsquos

e-invoicing platform This may work for top business partners

but for the partners with less volume (longtail) this approach

usually leads to low conversion to e-invoicing Whatrsquos more

closed service providers may see the open model as a threat

the platform becomes accessible for trading entities on other

platforms However in reality the open model is an opportunity

it adds reach and thus invoice volume potential to the platform

that would otherwise be untapped

So what should participants do bull Put lsquoopennessrsquo as the 1 criteria for your e-invoicing RFP

if your service provider does not follow the lsquoopenrsquo paradigm

the chances that you will successfully onboard your longtail

suppliers in a supplier friendly way are very limited If your

service provider does not support the open model put pressure

on him to embrace it After all openness is not a threat just an

opportunity

bull Choose an e-invoice that only complies for 80 over a

paper invoice Be less rigid for your longtail suppliers with

regards to invoice standards and data requirements in favour

of a single industry standard the one agreed by accounting

e-invoicing and ERP software vendors This implies that you

do not impose your own data requirements Instead you adjust

your system to efficiently process industry standard invoices

bull Use PEPPOL discovery engine (aka SML) where possible

and make e-invoicing the default The PEPPOL protocol

has a very sophisticated discovery service accessible via

a very simple DNS(1) mechanism it allows you to discover if

your buyer requires an e-invoice Use that discovery engine to

assess if your buyer requires an e-invoice rather than depend

on an onboarding process with your buyer


Share this story

bull Donrsquot overestimate VAT compliance many companies

think VAT compliance requires parties to agree bilaterally on

e-invoicing that conversion by parties is forbidden by VAT law

that invoice originality is a major concern and that authenticity

and integrity are complex The reality is that none of these are

true Conversion of invoices is fact of live for years and no

show-stopper at all Invoice originality is in most European

countries easily solvable by service providers and ERP vendors

in the market the PEPPOL regulatory framework solves

authenticity and integrity and is not a concern anymore for

participants

What should service providers and ERP vendors do Embrace

openness Opening your platform does not harm your business

model Instead it allows easy integration of your platform with

many other e-invoicing ERP and accounting software vendors

with only one standard and protocol (PEPPOL) It eliminates the

need for costly bilateral agreements And it also empowers your

existing and new customers to use your services beyond your

platform

In a nutshell the paradigm of open e-invoicing and further

collaboration between e-invoicing providers ERP and accounting

software vendors in the area of interoperability is essential to

move Europe further in e-invoicing The private sector should now

step in and leverage that growth

(1) DNS is the same mechanism that makes sure that www

simplerinvoicingorg is translated into a technical IP address

of our web server The same mechanism is used to resolve

for example a VAT number into the IP address to which an

e-invoice can be delivered

About Jaap Jan Nienhuis Jaap Jan Nienhuis is Manager Simplerinvoicing at SIDN He is responsible for managing the Simplerinvoicing scheme authority Jaap Jan has a special interest in the development of new services in 4-corner models In his former roles he has been involved in a number of European collaborative e-invoicing initiatives including the EBA E-invoicing Working Group

About SIDN Simplerinvoicing is a collaboration between leading European e-invoicing and accounting software providers who all strive for mass adoption of e-invoicing by interoperability and standardisation Simplerinvoicing is a PEPPOL Authority The Dutch government is connected via Simplerinvoicing

wwwsimplerinvocingorg

Jaap Jan Nienhuis

Manager SimplerinvoicingSimplerinvoicing

DONT MISS THE OPPORTUNITY OF BEING PART OF LARGE-SCALE PAYMENTS INDUSTRY OVERVIEW

The Paypers offers the most valuable source of information and guidance for all parties interested in the current state of affairs of the payments industry

Paul Alfing Chairman e-Payments Committee Ecommerce Europe

Once a year The Paypers releases three large-scale industry overviews covering the latest trends developments disruptive innovations and challenges that define the global onlinemobile payments e-invoicing B2B payments ecommerce and web fraud prevention amp digital identity space Industry consultants policy makers service providers merchants from all over the world share their views and expertise on different key topics within the industry Listings and advertorial options are also part of the Guides for the purpose of ensuring effective company exposure at a global level

For the latest edition please check the Reports section

ONLINE PAYMENTSAn all-in-one reference guide on (online) payments amp ecommerce industry trends evolving business models top players and relevant (alternative) payment methods

B2B PAYMENTS SCF amp E-INVOICINGIndustry voices from the online finance space share insights into the dynamic B2B payment e-invoicing supply chain finance industries to support innovative solutions amp thriving businesses

WEB FRAUD PREVENTION ONLINE SECURITY amp DIGITAL IDENTITYIn-depth source of information highlighting key facts amp trends into the global digital identity transactional and web fraud prevention amp detection ecosystem

Regulation amp Law


PSD2 XS2A ndash a Step Towards Open Banking

Evolution Payments Consulting

The world of retail banking and payments has become a very

engaging and dynamic environment We have seen new

products and services emerging over the past few years aimed

at disrupting the status quo For a market that has remained

relatively stable over the decades we are on the verge of

witnessing great change

To facilitate this change current payment regulation needs to

be amended to give financial service providers new and old

the opportunity to access systems and data so that they can

participate in the market and offer innovative products and services

To address this the European Commission published the Payment

Services Directive 2 (PSD2) in the Open Journal of the European

Union in January 2016 which will be transposed into Member

States national laws in January 2018

The aim of the Payment Services Directive 2 (PSD2) is to harmonise

the European payments landscape from a regulatory perspective

ensuring that all relevant organisations and activities are

adequately covered This marks a shift towards an integrated

single market for safe electronic payments that strives to support

the growth of the European Union (EU) economy Moreover the

aim is to ensure that consumers merchants and companies

enjoy choice and transparent secure payment services so that

they will fully benefit from the internal market

One of the principles of PSD2 is to foster an environment

whereby customers wanting to use value-added services from

Third Party Providers (TPPs) can do so safely in the knowledge

that their personal security credentials have not been shared with

a third party and that the service provider can access only the

information for which the customer has given explicit consent

However for these products and services to become mainstream

and widely adopted by consumers the TPPs require access to

the customerrsquos online bank accounts to access data in real-time

The mechanism by which this will be achieved is through Access

to Accounts more commonly referred to as XS2A which is set

out in PSD2

Access to accountsThe European Banking Authority (EBA) in cooperation with

the European Central Bank (ECB) will publish Regulatory

Technical Specifications (RTS) which will determine how TPPs

with a customerrsquos consent can access account information in

a secure manner to provide value-added services How this will

be achieved has yet to be determined the EBA will publish a

consultation paper with the draft RTS in late 2016

It is anticipated that the EBA will recommend the use of Application

Programming Interfaces (APIs) to deliver the vision of Access to

Accounts Yet it is still unclear on what API standards they will

focus and how these will practically be managed

The implications for regulated businessesHowever what is known is that this will have a profound impact

on incumbent banks payment organisations and fintechs

The implementation of an API environment whereby TTPs

can access customer account data to provide new innovative

products and services will challenge existing business models

There is going to be an influx of new market entrants Some will

be familiar names looking to extend the scope of their offerings in

the new API market economy Others are going to be nimble agile

fintechs that will deliver new compelling propositions and services

by doing things differently and looking to take market share from

incumbent organisations When PSD2 becomes a reality there is

nothing to stop companies applying to be a regulated entity as

a Payment Initiation Service Provider (PISP) andor Application

Initiation Service Provider (AISP) delivering new innovative

products and services directly to consumers

Are we seeing the conditions for a perfect storm On the one

hand we have banks that need to provide access to accounts

through PSD2 Regulation Some of them will become PISPs

andor AISPs to protect their existing business and revenues

and attract new customers


Share this story

On the other we have the challengers a mix of established

organisations looking to grow their business through extension

and diversification of their core competencies through fintechs

and start-ups looking to carve a niche into the market with

focused products and services

The current status quo will be challenged Established technology

giants (eg Google Apple Samsung etc) with their financial

muscle large customer base across the majority of European

countries significant brand reputation and a strong understanding

of what drives consumers could potentially look to position

themselves as digital financial services providers

Nimble agile fintechs that donrsquot have the legacy IT environments

developed over many years are in a prime position to deliver and

launch new services

These organisations will look to realise a vision of a digital financial

services provider that can offer the consumer one place where

they can consolidate all the financial services data into an easily

understandable format with tools to manage their money and

without the legacy banking infrastructure and complexities

associated with it

A place where the customer can look apply and be granted

services (ie secureunsecure loans payday advances credit

card application foreign exchange services etc) in a quick

easy and frictionless manner from a variety of service providers

Automation and great UX being the name of the game

They do not have to provide the financial services directly to

the customer They can act as the broker the digital conduit

for products and services benefiting from the commercial

relationships struck with selected service providers

The world of retail banking and payments is set for great change

About Brendan Jones A senior management consultant with over 30 yearsrsquo experience in the payments industry working with a variety of organisations including technology amp service providers and financial organisations Previously held senior roles focusing on business strategy regu lat ion bus iness deve lopment MampA product development programme amp operations management and business process reengineering

About Evolution Payments Consulting Evolution Payments Consulting (EPC) provides payment consulting services to the financial services industry and allied organisations EPC provides payments industry advice to companies looking to support the implementation of new regulation developlaunch new banking and payment propositions re-purpose existing products and services to meet the new and existing regulatory requirements

uklinkedincominjonesbrendan

Brendan Jones

Director



Late Payment ndash A Perspective

ABFA

Research reports or surveys into late payment are what seem to

pass for lsquoclick-baitrsquo in the rarefied world of SME and commercial

finance media The Asset Based Finance Association (ABFA)

regularly carries out its own studies our most recent review of

Companies House data finds that whilst in the manufacturing

sector the biggest businesses are benefiting from a slight fall in

payment times those benefits are not being passed down the

supply chain to smaller manufacturing businesses who still

suffer an ever-increasing wait for payment

Unfortunately this is a longstanding issue In 1997 the then

(literally) new Labour government launched the Better Payment

Practice Campaign with the business groups to address these

very issues Now the flag is flown by the Chartered Institute of

Credit Management with the Prompt Payment Code

There has been legislative action since 2010 as well with changes

to the legal framework at the EU level being implemented through

the Late Payment of Commercial Debts Regulations (2013) and

more significantly with last yearrsquos Small Business Enterprise

and Employment Act bringing forward a wide-ranging package

of measures to bolster the Code including requirements around

mandatory reporting of payment times

These measures are slowly coming through in Regulations now

and additional legislation in the form of the Enterprise Act 2016

(which received Royal Assent during the writing of this article) will

enable the establishment of the Small Business Commissioner

that will specifically focus on payment issues

But nine years on from the credit crunch and after several years of

intense political focus on these issues concerns about payment

times and the knock-on implications for cash-flow and availability

of working capital still regularly top the lists of concerns for small

business owners As indicated by our own research the nagging

concern is that whilst it might be getting better for the larger

businesses ndash who are arguably not the ones being imperilled in

the first place ndash the situation for smaller businesses is worsening

each and every year

What can be done Well depending on its resources and final

remit the Small Business Commissioner could be an interesting

proposition Despite relatively limited formal powers the

Groceries Code Adjudicator (GCA) has made some effective

interventions in its bailiwick naming and shaming one player

in particular earlier in the year in a spectacular example of

lsquobehavioural economicsrsquo in action However whether this media

and political pile-on will prompt and sustain meaningful change

across a notoriously cut-throat sector remains to be seen

For our part the ABFA and others have been calling for the

Small Business Commissioner to be established as a serious

proposition with a wide remit to identify all instances and

circumstances where smaller businesses are treated unfairly We

argue that such a body will need teeth as well as a big mouth if it

is really going to level the playing field

What is actually meant by late payment gets to the heart of

this and is why the ABFA argues that the conversation should

be about poor payment practices more generally not just late

payment

Delaying payment to a supplier outside agreed payment terms

unless there are legitimate reasons for not doing so is late

payment and is clearly unacceptable

What about a larger customer business leveraging the market

power it has over its smaller suppliers to impose extended payment

terms It is not lsquolatersquo payment but it is no less unacceptable and the

economic effect on supply chains is the same What about using

that same market position to impose retrospective discounts

as the GCA found What about the imposition of contractual

clauses that have the net effect of passing contractual risk from

the larger businesses that are best able to manage it down the

supply chain to the smaller businesses that are not


Share this story

Prominent amongst these are pay when paid clauses

(prevalent in the recruitment process outsourcing (RPO) world)

unlimited liquidated damages clauses and ban on assignment

clauses The latter contractual terms seek to prevent suppliers

from using their unpaid invoices to access invoice finance

Admirably the government is already taking specific legislative

action against these with the aforementioned Small Business

Act enabling Regulations (expected shortly) to render such

clauses ineffective belatedly bringing the UK into line with

most of the other major world economies This will allow invoice

financiers to provide more funding to more businesses and will

particularly benefit the smaller supplier businesses that suffer

most from these unnecessary clauses

Ultimately this should also be good for larger customer businesses

who will benefit from more stable and well-funded supply chains

Of course whilst invoice finance can help SMEs unlock funding

it is not a silver bullet and is not a substitute for paying suppliers

promptly and treating them fairly For that there needs to be a

cultural shift and that is where an empowered and resourced

Small Business Commissioner could have a real impact

About Matthew Davies Matthew is the Director of Policy and Communications at ABFA

About ABFA The ABFA represents the asset based finance industry in the UK and the Republic of Ireland Members include UK and Irish high street banks specialist and challenger banks specialist businesses of international banks and corporates and independent nonbank finance providers

wwwabfaorguk

Matthew Davies

Director of Policy and CommunicationsAsset Based Finance Association


The Directive 201455EU for E-invoicing and Procurement How Public Authorities Should Respond

EESPA

Important developments are underway in the promotion of

e-invoicing in public procurement Under the Directive 201455

EU Member States must ensure that all public sector contracting

authorities are able to receive and process electronic invoices

from suppliers which follow a new European standard for an

e-invoice This will happen over the next three or four years and

is a major opportunity for encouraging e-invoicing adoption

E-invoicing is supportive of public policy priorities such as

deficit reduction financial transparency and sustainability and

will specifically make a material contribution to public sector

cost reduction and efficiency Moreover it will provide benefits

to private sector suppliers Its ease of implementation can be

demonstrated with reference to many successful private sector

and public sector experiences and to the extensive range of

existing market solutions and service provider offerings

The European Union and the Member States have in recent

years taken some steps to promote e-invoicing as a public policy

priority in support of the Single Market and Digital Agendas

For instance the EU has funded important building blocks and

initiatives such as PEPPOL and the CEF programme to support

the adoption process With this clear public policy support

European public administrations of all kinds are getting ready to

adopt e-invoicing on a broad scale

The new standardDirective 201455EU provides a clear definition of an electronic

invoice an invoice that has been issued transmitted and

received in a structured electronic format which allows for its

automatic and electronic processingrdquo

The Commission has requested CEN a key European standardi-

sation organisation to draft a European standard for the semantic

data model of the core elements of an electronic invoice

CEN has created a CEN Technical Committee ndash CEN TC434 ndash to

carry out the work The lsquosemantic data modelrsquo will be a structured

and logically interrelated set of terms and their meanings

relevant to the business functions of an invoice To ease the use

of such standard the Commission has also requested CEN to

provide a limited number of syntaxes which follow the European

standard on electronic invoicing the appropriate syntax bindings

and guidelines on transmission interoperability lsquoSyntaxrsquo means

the machine-readable language or lsquodialectrsquo used to represent

the data elements contained in an electronic invoice and for

structuring messages based on the lsquosemanticrsquo data model

The European standard is now under preparation in the CEN TC

434 and will be approved and published by the early part of 2017

lsquoThe benefits of electronic invoicing are maximised when the

generation sending transmission reception and processing of

an invoice can be fully automated For this reason only machine-

readable invoices which can be processed automatically and

digitally by the recipient should be considered to be compliant

with the European standard on electronic invoicing A mere

image file should not be considered to be an electronic invoice

for the purpose of the Directive

How should public authorities respondThe Directive does not itself create a mandatory rule for the

parties contracting authorities and their suppliers to move all

their invoicing to electronic exclusively based on the European

standard at least not at this stage The Member States may

keep e-invoicing based on existing national standards and are

not forced to move away from traditional invoicing Having said

this the arrival of a European standard creates an opportunity

for harmonisation and a concerted process of adoption across

national public sectors and the EU

To make all this happen policy-making regulation and the

distribution of operational responsibilities are all critical factors

for the success of e-invoicing For the development of a suitable

policy framework the Member States will typically wish to

establish a national strategy with detailed action plans to ensure

implementation to decide on the degree of compulsion the

various ways and standards for adoption and to agree on a

centralised or decentralised infrastructure


Share this story

European E-invoicing Service Providers Association

Member Public administrations may consider the use of lsquoshared

servicesrsquo the use of third-party e-procurement and e-invoicing

solutions and services and the degree of integration between

pre-award and post-award processes Contracting authorities

will wish to ensure that the necessary technical infrastructure

is deployed to receive invoices confor ming to the European

standard in the required formats

Once received the Directive does not require the contracting

authority to do more than lsquoprocessrsquo such invoices This can be

done in a fully automated way particularly if the contracting

authority is already processing e-invoices in a semi-automated

way or the invoices can be simply converted to a human

readable form (using available technology) and processed

manually The authority can leave it to suppliers to choose

whether to adopt the standard and render invoices in the format

and neither encourage nor discourage its use This describes a

minimalist strategy

It is recognised that the minimum requirements are a starting

point and likely to evolve as the e-invoicing journey progresses

The opportunity presented by the new European standard

calls for more ambitious and various e-invoicing adoption

programmes For this contracting authorities would think about

moving towards completely automated processing of e-invoices

after they are received perhaps only based on the new

standard Such an approach describes a maximalist strategy ndash

a recommended goal by many commentators

This will be a challenging and exciting period for the public sector

and their service and solution providers It is a real opportunity to

spread the e-invoicing habit and save money for buyers and their

suppliers whilst promoting supply chain efficiency

[The above material is drawn from a Guidance Paper prepared

for the European Multi-Stakeholder Forum on e-Invoicing and

prepared by the writer in conjunction with an Activity Group of

the Forum]

About Charles Bryant Charles Bryant is Secretary General of EESPA and also active in the Global Supply Chain Finance Forum

About EESPA The European E-invoicing Service Providers Association acts as a trade association at European level for a large and dynamic community of e-invoicing service providers drawn from organisations that provide network business outsourcing financial technology and EDI services EESPA is an International Not-for-Profit Association organised under Belgian law Formed in 2011 it has over 60 full and associate members and is involved with a range of important initiatives in interoperability the public policy debate and promoting adoption

wwweespaeu

Charles Bryant

Secretary GeneralEESPA


The International Association for Alternative Finance

Growth of alternative financeSince 1999 and the early days of the internet we have seen

business models such as the travel sector been transformed

High street shops with glossy travel catalogues have given way

to web stores and ultimately travel comparison websites These

new models have enhanced the customer journey and delivered

rates of return to operators who have embraced these new

ways of working Not least with these models is the low cost of

operation low point of entry and typically higher yield per traveler

particularly when ldquoadd onrdquo sales such as insurance are achieved

From a slower start alternative finance has embraced similar

models Against a moribund collection of banks and traditional

finance providers the transition is starting to be made from

those high street shops which represent the traditional banks to

online web stores The resultant growth of alternative finance has

surprised even its staunchest critics

Standards and regulationAgainst this background of growth the alternative finance sector

has been slow to recognise the power of regulation as a way

to slow or indeed kill growth A good historical comparison is

the battle of the airlines in the 1980rsquos where heavyweight and

dominant airlines very nearly killed the growth of fast moving

low cost airlines through regulation

Differently to the street fighters of the Bransonrsquos alternative

finance providers have approached the threat from regulation

almost naively The predominant view is that each player will

develop its own approach to standards and regulation and that

all will be well However there is a massive under-estimation

of the traditional banks who spend tens of millions engaging

with regulators and influencers in order to maintain the status

quo The experience of challenger banks who were unable to

get exemptions from the UK bank tax is probably an indicator of

where such influence has acted against new entrants

The contradictionThe contradiction of platforms and funding providers is that

they want to be regulated This seems totally contra to a newly

developing sector where agility is everything

In addition regulators have been relatively disinterested in

regulating alternative finance as it represents such a tiny

proportion of finance Regulators are busy elsewhere

So what is the danger Well the danger is that alternative

finance providers may get regulated but in a way that they

had not expected This could be the result of regulators not

understanding the dynamics of this new market and may purely

by accident kill the sector

So what are the alternatives There are a number of different

segments to the alternative finance market consumer related

activity for sure touching on elements of regulatory space

However there are common threads which need standards to

be developed which could act as a guide for future but informed

regulation

These guidelines need to cover some real basics reflecting a new

industry For instance how much time is spent on staff vetting

crucial where sales staff are often responsible for authenticating

transactions And what happens with IT security both for

the platforms themselves and the feeds to and from funding

providers Again how long is it before a platform is hacked

If it can happen to the closed SWIFT network new technology

platforms could be even more vulnerable Resilience and

security is the responsibility of each platform at the moment but

a failure of the weakest link could have a devastating impact on

the sector

Regulation and Growth in Alternative Finance ndash A Contradiction in the Making


Share this story

The International Association of Alternative Finance (IAAF

orguk) has been taking a lead through 2015 in encouraging

platforms to work together to develop standards The concept

is to not make anything mandatory at this stage but to build

guidelines that members can work towards This has been

achieved in parallel with key stakeholders and regulators

The latter have been especially supportive as they do not want to

kill an embryonic alternative finance sector

However the fate of the sector very much rests in the decisions

of platforms and funding providers Do they lose the agility

of alternative finance or do they work together on building

guidelines and standards which could become the kind of

regulation that will support growth The IAAF is launching the

first Guidelines for the growth of alternative finance on June 16

The guidelines cover key areas required to support the growth

of the sector and will hopefully provide the pathway that the

industry needs

About Tony Duggan Tony was previously Supply Chain Development Director at Wickes where he developed Europersquos largest B2B platform As Consulting Services Director at Bolero a division of the SWIFT banking network he worked with some of the worldrsquos largest banks on global SCF initiatives This unique experience along with his real experience in start-ups and SMEs has provided him with real insights into the challenges of SCF and has been fundamental in the design of the Crossflow solution

About IAAF Founded in London in 2014 the International Association for Alternative Finance (IAAF) is an industry body committed to the promotion and development of the Alternative Business Finance sector IAAF sets out its drive for the Business Alternative Finance to be applied with excellence globally thereby creating opportunities for members and supporting the economy development as a whole The Associationrsquos four key focus areas are regulation reputation operational environment and future growth

wwwiaafinorg

Tony Duggan

Founder and DirectorIAAF

Company profiles

73 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016 | COMPANY PROFILES

Company CloudTrade

CloudTrade is one of the fastest growing e-invoice networks and built firmly on the premise that e-invoicing should be free for suppliers easy-to-use and non-disruptive ndash only then will suppliers move away from paper These principles underpin the CloudTrade service which ensures high supplier adoption is guaranteed

Website wwwcloudtradenetworkcom

Service provider type E-invoicing service provider

Head office location UK

In which market do you provide your services

North America Europe Middle EastAfrica AsiaPacific

Contact details Mr Richard Manson Commercial Director richardmansoncloud-tradecom +44 (0)7956 441898 2-6 Boundary Row London SE1 8HP

Active since 2010

Keywords electronic invoicing e-invoicing PDF invoicing P2P purchase to pay e-order O2C order to cash

Markets

Which side in the supply chain is your primary target group

Both buyers and suppliers

B2B B2C andor B2G (Government)

B2B B2G

Target customer Corporates

Are you specialized in a certain industry

Generic (no specific industry)

Proposition

Which processes in the supply chain do you facilitate

Ordering supply chain invoicing

Support interoperability with other service providers

Yes ndash we currently interoperate with a number of service providers Furthermore CloudTrade is a registered Access Point on the PEPPOL network

Which pricing model do you mainly use

Subscription and transaction-based

Solution description CloudTrade removes the barriers to supplier adoption Our patented solution provides a non-disruptive way for a supplier to send electronic invoices ndash without having to change systems or infrastructure The net result is that we will remove more paper from an organisation in a shorter time frame than any other e-invoicing approach

Services which of the following services do you offer

Purchase Order Flip No

Matching of related transactions Yes ndash match invoices to POs contracts service entry sheets or goods receipt Business rules can be amended per customer

Distribution of e-invoices Yes

Invoice presentment portal No ndash a portal is available for the receiving organisation but not for the sending organisation Processing updates are provided to the supplier via e-mail

Legal compliance tools Yes

TAXVAT compliancy Yes

e-Signature service Yes

Finance amp (reversed) factoring services

Yes ndash offered through a CloudTrade partner

(Dynamic) discounting Yes ndash offered through a CloudTrade partner

e-Archiving Yes

Scanning of paper invoices Yes

View company profile in online database


Total invoice management 100 paper to electronic

Yes

Printing No

Workflow functionality Yes

Direct integration with payments No

Accounts Payable management Yes

Accounts Receivable management

No

Integration with ERPaccounting software

Yes

Which standards do you support All current major e-invoicing e-billing and payment standards

Conversion from or into various XML formats (mapping)

Yes

Content validation of incoming invoice data

Yes ndash each document is validated against a set of document and customer specific validations

Facilitate customer onboarding Yes ndash due to the ease by which suppliers are able to adopt CloudTradersquos e-invoicing service typically more than 90 of suppliers that we are asked to on-board will come on board

Other services The core technology underpinning CloudTradersquos service is document agnostic We can (and do) provide e-document services across numerous sectors and document flows


Company Comarch

Comarch is a global provider of IT solutions Comarch has more than 20 years of industry experience thousands successfully completed projects in over 40 countries worldwide references own RampD department made up of high-end IT engineers high ranking IT analyst ratings Gartner IDC Truffle 100 custom data centers in Poland and Germany

Website wwwcomarchcom wwwedicomarchcom

Service provider type Software vendor e-invoicing provider

Head office location Poland


Global

Contact details Mr Bartlomiej Wojtowicz Product Manager bartlomiejwojtowiczcomarchcom +48 12 684 8735

Active since 1993

Keywords supplier onboarding supplier portal e-invoicing purchase-to-pay archiving electronic invoices master data management supply chain financing

Markets




B2B

Target customer Micro SMEs SMEs corporates

Are you specialised in a certain industry

Broad scope of industries including FMCG retail DIY automotive logistics oilampgas pharma electronics

Proposition


Supplier onboarding master data management ordering supply chain logistics e-invoicing supply chain financing


Yes


Licensed SaaS transaction-based

Solution description Comarch EDI provides the companies with smart solution enabling exchange of validated and tax compliant invoices in the format adjusted to back office systems It provides electronic archive and electronic signature as well as Service Desk in 12 languages (including English German French Turkish Russian) to guarantee onboarding of each partner


Purchase Order Flip Yes

Matching of related transactions Yes


Invoice presentment portal Yes





Yes

(Dynamic) discounting No

e-Archiving Yes

Scanning of paper invoices Yes via partners


Yes



Printing Yes via partners

Workflow functionality No


Accounts Payable management No


No


Yes

Which standards do you support Support for various formats


Yes


Yes

Facilitate customer onboarding Yes

Other services Suppliers onboarding


Company ebpSource Limited

The most experienced team in the e-billing and payment industry ebpSource delivers software solutions consultancy and support to billers banks payment processors and outsourcers ebpSource brings unparalleled knowledge and a highly successful track-record designing developing deploying integrating and supporting many of the largest and highest-adoption services of this kind worldwide

Website wwwebpsourcecom

Service provider type Software vendor and reseller ndash e-billing e-invoicing e-signing mobile payment supply chain finance and authentication specialists Large-scale projects at a national and international level Ongoing support and specialist consultancy

Head office location United Kingdom


Globally

Contact details Steve Wright Commercial Director swrightebpsourcecom +44 1753 567896

Active since 2006

Keywords ebpsource e-billing payment software solution e-invoicing e-signing authentication

Markets


Both suppliers and buyers


B2B B2C B2G



Cross-industry with specific specialisations in national e-bill consolidation bank-based e-invoicing and payment telecoms and utility e-billing e-signing and smart authentication

Proposition


Authentication e-invoicing payments online banking integration supply chain finance ordering e-signing


ebpSource has a wealth of experience in connecting e-billing and payment infrastructures at a national and regional level


License subscription transaction-based

Solution description ebpSource provides a range of software consultancy and support services to help clients achieve new levels of operational efficiency customer service and cost reduction The team works closely with clients to design develop deploy integrate and support end customer applications Our key focus is long-term strategic partnerships with customers










Yes

(Dynamic) discounting Yes

e-Archiving Yes

Scanning of paper invoices No


Yes



Printing No


Direct integration with payments Yes



Yes


Yes



Yes


Yes


Other services Technology development consultancy and application support


Company Order2Cash

Order2Cash is a pioneering provider of global order to cash optimisation services Cited by Gartner as a pure-play Order2Cash solution provider our services empower the work of Fortune 500 companies and leading enterprises around the world helping them to reduce costs and optimise spending on resources and technology Discover more at wwworder2cashcom Order2Cash is an Anachron company wwwanachroncom

Website

Service provider type

Head office location


Contact details

Active since

Keywords

wwworder2cashcomOrder2Cash provides flawless integration of the entire accounts receivable process across the enterprise and around the globe End-to-end global SaaS solutions including credit checks secure online contract signing multi-channel e-invoicing online payments credit management and document archiving

EMEA Head office Amsterdam the Netherlands US Head office NY USA

Globally

Phone EMEA +31 20 531 39 00 USA +1 347 478 5398 Email infoorder2cashcom Twitter O2CAnachron LinkedIn linkedincomcompanyorder2cash

2000

order to cash e-invoicing credit management payments contracting interoperability

Markets




B2B B2C B2G

Target customer Mid-large corporates and multinationals


Our solutions are focused on AR automation and accelerating the order to cash process As such they are suitable for use in all industries

Proposition




Solution description

Credit checks online document signing e-invoicing payments cash application credit management collections

Yes we have interoperability agreements with an extensive range of B2BB2G e-invoicing networks and are a member of the European E-Invoicing Service Providers Association (EESPA)

Transaction-based pricing

Order2Cashcom offers a suite of SaaS solutions that combine to create a flawless integration of the entire accounts receivable process across the enterprise and around the globe Its modules support credit checks contracting e-invoicing payments and credit management Select components and tailor a solution to suit your business needs




Distribution of e-invoices Yes Our solutions integrate with 700+ ERP systems for easy document exchange In addition we are connected with over 25 P2P platforms


Legal compliance tools We work closely together with partners such as PwC and EY to ensure international TaxVAT compliancy

TAXVAT compliancy Global coverage

e-Signature service Every document is signed with an e-signature (QES or AES) to guarantee integrity and authenticity and to meet VAT requirements This can be completed with a timestamp


Offered through partner network of financial institutions




e-Archiving Every document is securely archived complete legal storage period

Scanning of paper invoices Yes in cooperation with our network of output partners


Yes

Printing Yes in cooperation with our network of global output partners



Accounts Payable management Available in cooperation with our network of output patners


Yes


Yes We have established connections with over 700 ERP systems

Which standards do you support UNCEFACT CII ISO20022 Financial Invoice UBL 20 and others if required


Yes Any structured data can be converted to XML format


Yes All data is validated and reported

Facilitate customer onboarding Yes Full support guidelines and advice is offered to all clients on customer activation

Other services Related to invoicing reporting query management customer grouping authorisation tools consolidated billing Alongside invoicing services your Order2Cash solution can expand to include online payment functionalities robust credit management and cash application tools as well as a secure online contract and document signing service Further details on the full platform can be found on our website

Connecting everyone everywhere

Flawless integration of the entire AR process across the enterprise

and around the globe

wwworder2cashcom

Fix Your Leaky Receivables Scan the QR code to claim your FREE Diagnostic Spreadsheet and measure the hidden costs in your accounts receivables processes


Company Saphety Level ndash Trusted Services SA

Saphety is a leading company in global network solutions for electronic documents exchange document presentment data synchronisation and public procurement Saphety has 4700 companies and over 129000 users throughout more than 30 countries

Website httpwwwsaphetycom

Service provider type E-invoicing service provider bank software vendor reseller or specialist

Head office location Portugal (headquarters in Lisbon and operational offices in Bogotaacute Colombia and Satildeo Paulo Brazil)


Global

Contact details infosaphetycom +351 210 114 640

Active since 2000

Keywords electronic documents exchange e-invoice invoice software paperless transactions EDI document presentment public procurement data synchronisation

Markets


Buyers suppliers both


B2B B2G

Target customer Micro SMEs SMEs corporates and government


Automotive government healthcare retail utilities telecom tourism oil amp energy finance (bank and insurance) mass businesses and others

Proposition


Contracting ordering supply chain invoicing payments


Yes


Subscription transaction-based

Solution description SaphetyDoc enables you to exchange business documentation electronically including purchase orders delivery notes and invoices in a simple way at a low cost While complying with all legal requirements related to e-invoicing SaphetyDoc allows to completely eliminate the use of paper in the invoicing process from issuance to sending and approval







TAXVAT compliancy AU AT BE BG CA CY CZ DK EE FI FR DE GR HK HU IS IE IM IL IT LV LI LT LU MT MX MA NL NZ NO PL PT RO SG SK SI ZA ES SE CH GB US

e-Signature service Yes we provide e-Signature Service We can also use external e-Signature service if requested by client


Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes

Which standards do you support UBL 20 EDIFACT Flat files TXT XML Idoc etc


Yes


Yes


Other services IPC Invoice Payment Control Doc+ Market reports in progress

Please stop wasting paperBest RegardsMother Earth

Learn more at saphetycom

Saphety offers the best paperless solutions to help your businessbe more environmentally friendly while improving your efficiencyand workflow process


Company Tungsten Corporation Ltd

Tungsten Corporation accelerates global trade by enabling customers to streamline invoice processing improve cash-flow management and make better buying decisions Tungsten Network helps buying organisations reduce their invoice-processing costs by 60 and profit by applying real-time spend analytics to their line-level invoice data Suppliers gain efficiencies greater payment-status visibility and optional early payment

Website wwwtungsten-networkcom

Service provider type Global e-invoicing network invoice finance and spend analytics

Head office location London UK


Globally

Contact details Mr Ruud van Hilten SVP Global Buyer Sales ruudvanhiltentungsten-networkcom +44 87 0165 7420

Active since 2000

Keywords electronic invoicing accounts payable procurement supplier network purchase to pay invoice finance spend analytics AP workflow

Markets




B2B amp B2G

Target customer Micro SMEs SMEs corporates multinationals


Generic (no specific industry) E-invoicing is a horizontal process

Proposition


Invoicing purchase to pay working capital financing purchasing orders supplier self-service real-time spend analytics


Yes We interoperate with compliant service providers where there is customer demand qualifying invoice volume and compliance is maintained


Balanced-costs are shared by buyers and suppliers Low volume suppliers receive 52 free invoices annually and high volume suppliers receive 520 free invoices annually After these free invoice transactions have been used a flat fee structure is applied per invoice transaction

Solution description The worldrsquos largest organisations connect with thousands of suppliers around the globe through Tungsten Network We enable companies to send and receive error-free tax-compliant invoices around the globe without the need to install any hardware or software We provide a unique supplier engagement and onboarding programme to ensure that suppliers participate and transact with their buyers


Purchase Order Flip Yes We can take POs from all sources in a buyerrsquos structure and present these to the supply chain Suppliers can convert POs directly into invoices on our portal

Matching of related transactions Yes We match invoices with POs online-level if required

Distribution of e-invoices Yes We enable companies to send and receive compliant B2B invoices

Invoice presentment portal Yes Suppliers can use our portal to manually enter their invoice data convert a PO check the status of their invoices and select early payment

Legal compliance tools Yes Our rules engine enables companies to receive compliant invoices in all the jurisdictions we are compliant in

TAXVAT compliancy Yes We work with local tax authorities to enable companies to send and receive compliant invoices We are currently compliant in 47 countries with a pipeline of new countries in progress



e-Signature service Yes All compliant invoices are digitally signed where required by local regulations We provide at-source signature verification


Yes Invoice financing is a service we offer through Tungsten Network Finance This can be funded by Tungstenrsquos own financing partners the buyer or the buyerrsquos banking partners

(Dynamic) discounting Yes We offer this service on a case-by-case basis via Tungsten Network

e-Archiving Yes We provide legally compliant archiving

Scanning of paper invoices Yes As a component of a structured e-invoicing programme


Yes As a component of a structured e-invoicing programme

Printing Yes We can arrange this service through a partner

Workflow functionality Yes We can arrange this service through a partner

Direct integration with payments Yes Tungsten Bank has access to all relevant payment systems

Accounts Payable management No We partner with the worldrsquos largest BPO providers


No We partner with the worldrsquos largest BPO providers


Yes We fully integrate with any ERP financial software

Which standards do you support Yes We support all structured file formats and most data standards


Yes We support all structured file formats and most data standards


Yes We use extensive and flexible rule-sets to ensure compliance with our buyersrsquo business processes

Facilitate customer onboarding Yes We provide a unique supplier engagement and onboarding programme and can contractually guarantee paper conversion rates in best practice projects

Other services Purchase order services invoice status service spend analytics supply chain finance

89 B2B FINTECH PAYMENTS SUPPLY CHAIN FINANCE amp E-INVOICING GUIDE 2016 | GLOSSARY

Glossary3-Corner Model3-Corner Model is an exchange model where senders and

receivers of invoices are connected to a single service provider for

the dispatch and receipt of messages

Another definition 3-Corner Model is an invoicing process set-up

whereby trading partners have separate contractual relationships

with the same service provider When both senders and receivers

of invoices are connected to a single hub for the dispatch and

receipt of invoices it is referred to as a 3-Corner model This central

hub consolidates the invoices of several receivers and many

senders in the case of accounts payable and several senders and

many receivers in the case of accounts receivable processing

Consolidators and trade platforms are usually 3-Corner Models in

which both senders and receivers are connected to the service

The 3-Corner Model in principle can only offer reach to the

parties that are connected to the central hub This means that

either invoice senders or invoice receivers often have to connect

to multiple hubs in order to increase their reach To solve limited

reach in 3-Corner Models roaming has been introduced

4-Corner Model4-Corner Model is an exchange model where senders and

receivers of invoice messages are supported by their own service

provider

Another definition 4-Corner Model is an invoicing process

set-up whereby each trading partner has contracted with one

or several separate service providers whereby the service

providers ensure the correct interchange of invoices between the

trading partners The concept of the 4-Corner model originated

in the banking sector When senders and receivers of invoices

are supported by their own consolidator service provider (for the

sender) and aggregator service provider (for the receiver) it is

referred to as a 4-Corner Model A network usually based on open

standards provides connectivity and the facilities for the secure

trusted exchange of invoices and or other business documents

In the 4-Corner Models the consolidator and aggregator roles are

often two different service providers

AAccess to financeAccess to finance is the ability of individuals or enterprises to

obtain financial services including credit deposit payment

insurance and other risk management services

Accounts payableAccounts payable refers to the money a business owes to others

current liabilities incurred in the normal course of business as an

organisation purchases goods or services with the understanding

that payment is due at a later date Accounts payable is also

the department within an organisation responsible for paying

invoices on behalf of the organisation

Accounts payable automationAccounts payable automation represents the (semi-) automated

management of accounts payable administration by automated

processing of invoices Accounts payable automation requires

integration of the invoicing process with accounting software

Accounts receivableAccounts receivable refers to money which is owed to a company

by customer for products and services provided on credit This

is often treated as a current asset on a balance sheet A specific

sale is generally only treated as an account receivable after the

customer is sent an invoice

Advanced electronic signature (AES)Advanced electronic signature (AES) means an electronic

signature which meets the following requirements a) it is

uniquely linked to the signatory b) it is capable of identifying

the signatory c) it is created using means that the signatory van

maintain under its sole control and d) it is linked to the data to

which it relates in such a manner that any subsequent change of

the date is detectable


Alternative financeAlternative financial services (AFS) is a term often used to

describe the array of financial services offered by providers

that operate outside of federally insured banks and thrifts

(hereafter referred to as lsquobanksrsquo) Check-cashing outlets money

transmitters car title lenders payday loan stores pawnshops

and rent-to-own stores are all considered AFS providers

However many of the products and services they provide

are not lsquoalternativersquo rather they are the same as or similar to

those offered by banks AFS also sometimes refers to financial

products delivered outside brick-and-mortar bank branches or

storefronts through alternative channels such as the internet

financial services kiosks and mobile phones

Online platform-based alternative financing activities include

donation- reward- and equity-based crowdfunding peer-to-

peer consumer and business lending invoice trading debt-

based securities and others

Asset based lending (ABL)Asset based lending (ABL) is a specialised form of secured

lending whereby a company uses its current assets (accounts

receivable and inventory) as collateral for a loan The loan is

structured so that the amount of credit is limited in relation to the

value of the collateral The product is differentiated from other

types of lending secured by accounts receivable and inventory by

the lenders use of controls over the borrowerrsquos cash receipts and

disbursements and the quality of collateral rather than ownership

of the receivables as in factoring

Asset based loanAsset based loan is a business loan in which the borrower pledges

as loan collateral any assets used in the conduct of his or her

business Funds are used for business-related expenses All

asset-based loans are secured

Automated clearing house (ACH)Automated clearing house (ACH) is an electronic payments

system (outside the card networks) for clearing and settling

transactions Funds are electronically exchanged directly to

from participantsrsquo accounts Frequently used by end-user

organisations as the payment method by which to pay their

issuer

BBasel IIIBasel III is a comprehensive set of reform measures designed to

improve the regulation supervision and risk management within

the banking sector The Basel Committee on Banking Supervision

published the first version of Basel III in late 2009 giving banks

approximately three years to satisfy all requirements Largely

in response to the credit crisis banks are required to maintain

proper leverage ratios and meet certain capital requirements

Bank payment obligation (BPO)Bank payment obligation (BPO) is a class of settlement solution

in international supply chain finance Bank payment obligation is

an irrevocable undertaking given by an obligator bank (typically

buyerrsquos bank) to a recipient bank (usually sellers bank) to pay

a specified amount on an agreed date under the condition

of successful electronic matching of data according to an

industry-wide set of rules adopted by International Chamber of

Commerce (ICC) Banking Commission

Bill of ladingA bill of lading (sometimes abbreviated as BL or BoL) is a

legal document between the shipper of a particular good and

the carrier detailing the type quantity and destination of the

good being carried The bill of lading also serves as a receipt

of shipment when the good is delivered to the predetermined

destination This document must accompany the shipped goods

no matter the form of transportation and must be signed by an

authorised representative from the carrier shipper and receiver

BlockchainBlockchain is a distributed ledger comprised of digitally recorded

data in packages called blocks These digitally recorded blocks of

data are stored in a linear chain Each block in the chain contains

cryptographically hashed data (such as Bitcoin transactions)

The blocks of hashed data draw upon the previous-block in the

chain

Business interoperability interfaces (BII)Business interoperability interfaces on public procurement

in Europe (BII) is CEN Workshop providing a basic framework

for technical interoperability in pan-European electronic

transactions expressed as a set of technical specifications that

in particular are compatible with UNCEFACT


Business Process Outsourcing (BPO)Business process outsourcing (BPO) is the contracting of a

specific business task such as payroll to a third-party service

provider Usually BPO is implemented as a cost-saving measure

for tasks that a company requires but does not depend upon to

maintain their position in the marketplace

Business-to-business (B2B)Business-to-business is a type of commerce transaction

that exists between businesses such as those involving a

manufacturer and wholesaler or a wholesaler and a retailer

Business to business refers to business that is conducted

between companies rather than between a company and

individual consumers This is in contrast to business to consumer

(B2C) and business to government (B2G) A typical supply

chain involves multiple business to business transactions as

companies purchase components and other raw materials

for use in its manufacturing processes The finished product

can then be sold to individuals via business to consumer

transactions

Business-to-business paymentsBusiness-to-business payments represent the payments that

are made between businesses for various goods services and

expenses

Business-to-consumer (B2C)Businesses or transactions conducted directly between a

company and consumers who are the end-users of its products

or services Business-to-consumer as a business model differs

significantly from the business-to-business model which refers

to commerce between two or more businesses

Business networksMany businesses use networking as a key factor in their

marketing plan It helps to develop a strong feeling of trust

between those involved and play a big part in raising the profile

and takings of a company Suppliers and businesses can be

seen as networked businesses and will tend to source the

business and their suppliers through their existing relationships

and those of the companies they work closely with Networked

businesses tend to be open random and supportive whereas

those relying on hierarchical traditional managed approaches

are closed selective and controlling

CCard schemeCard schemes such as Visa or MasterCard promote the use of

various card types which carry their logos Banks and financial

institutions have to apply for membership of the appropriate card

scheme before they can issue cards or acquire transactions

Cash flowCash flow represents the pattern of company income and

expenditures and resulting availability of cash

CENBII CENBII is an UBL-based XML format used for the OpenPEPPOL

network it currently exists in a version 1 and version 2 CENBII

is meant to be used for international transfers on OpenPEPPOL

whereas domestic transfers will generally use a localised version

of CENBII (eg EHF SimpleInvoice)

CFDIComprobante Fiscal Digital a traveacutes de Internet (CFDI) or Digital

Tax Receipt through Internet refers to the current mandated

form of e-invoicing in Mexico All e-invoices in Mexico are issued

as CFDI as of January 1 2014

ClearingClearing is the process of exchanging financial transaction

details between an acquirer and an issuer to facilitate posting

of a card-holderrsquos account and reconciliation of a customerrsquos

settlement position

Clearing house automated payment system (CHAPS)The company has responsibility for the operation of an electronic

transfer system for sending real-time gross settlement same-day

payments for CHAPS Sterling and CHAPS Euro

Commercial cardA commercial card is the generic umbrella term for a variety

of card types used for business-to-business (B2B) payments

Some of the cards listed as commercial are purchase cards

entertainment cards corporate cards travel cards and business

cards


Commercial financeCommercial finance is a generic term for a range of asset based

finance services which include factoring invoice discounting

international factoring reverse factoring and asset based lending

facilities There are many variations on each of these product

sets (and the precise nomenclature varies from market to

market) but all exist to provide working capital funding solutions

to businesses

ConversionConversion represents the act of automatically converting the

format of an electronic invoice from the format of the sender

to the format of the recipient (format conversion) or converting

the encoding of content (eg different code list or units of

measure) using agreed mapping processes that do not alter the

information represented by the document (content conversion)

Corporate cardCorporate card is a type of commercial card used by

organisations to pay for business travel and entertainment (TampE)

expenses It is also referred to as a travel card The liability for

abuse of the card typically rests with the company and not with

the employee

Corporate liabilityThe end-user organisation is liable for the commercial card

charges this is the case for purchasing card programs and

sometimes corporate card programs

CovenantThe covenant represents a promise in an indenture or any other

formal debt agreement that certain activities will or will not be

carried out Covenants in finance most often relate to terms in

a financial contracting such as loan documentation stating

the limits at which the borrower can further lend or other such

stipulations Covenants are put in place by lenders to protect

themselves from borrowers defaulting on their obligations due to

financial actions detrimental to themselves or the business

DDays payable outstanding (DPO) Days payable outstanding (DPO) is an efficiency ratio that

measures the average number of days a company takes to pay

its suppliers

Days sales outstanding (DSO)Days sales outstanding (DSO days receivables) is a calculation

used by a company to estimate their average collection period It

is a financial ratio that illustrates how well a companyrsquos accounts

receivables are being managed

Debtor (buyer)A debtor or buyer constitutes a business that has been supplied

with goods or services by the client and is obliged to make

payment for them It is also referred to as the purchaser of

goods or services supplied by a client whose debts have been

assigned sold to a factor

Debtor finance Debtor finance also called cash flow finance is an umbrella

term used to describe a process to fund a business using its

accounts receivable ledger as collateral Generally companies

that have low working capital reserves can get into cash flow

problems because invoices are paid on net 30 terms Debtor

finance solutions fund slow paying invoices which improves the

cash flow of the company This puts it in a better position to pay

operating expenses Types of debtor financing solutions include

invoice discounting factoring cash flow finance asset finance

invoice finance and working capital finance

Debt financingDebt financing refers to when a firm raises money for working

capital or capital expenditures by selling bonds bills or notes

to individual andor institutional investors In return for lending

the money the individuals or institutions become creditors and

receive a promise that the principal and interest on the debt will

be repaid

Directive of the European CommissionThe Directive of the European Commission is a legal act of the

European Union regarding defining a new legal framework for

payments

Distributed ledgerA distributed ledger is a consensus of data shared and synchronized

geographically across multiple websites countries and institutions


Dynamic discounting Dynamic discounting represents the collection of methods in

which payment terms can be established between a buyer and

supplier to accelerate payment for goods or services in return for

a reduced price or discount

EElectronic invoice (e-invoice) An e-invoice is an electronic invoice that contains the information

required by Council Directive 201045EU and which has been

issued and received in any electronic format It contains more

than just an image of an invoice An e-invoice also contains data

in a format that computers can understand This means that an

e-mail with a PDF file attached is not an e-invoice

E-invoice addressE-invoice address is the ID used to send or receive an e-invoice

The type of ID used differs depending on the country and the

format in use Typical IDs include GLN DUNS VAT-ID IBAN and

OVT A sender must know a recipientrsquos e-invoice address in order

to send an e-invoice The message is routed to the recipient by

any operator along the way using the e-invoice address

E-invoicing service providerIt is a provider that on the basis of an agreement performs

certain e-invoicing processes on behalf of a trading partner or

that is active in the provision of support services necessary to

realise such processes To determine whether an IT vendor is a

service provider the following circumstances should be taken

into account a) That the contract with the trading partner(s)

leads the latter to expect a VAT-compliant service b) The nature

of the service is such that VAT compliance is appropriate c) The

provider is insured against service related risks to his clientsrsquo tax

compliance Trading partners can use multiple e-invoicing service

providers see 3-Corner Model and 4-Corner Model definitions

An e-invoicing service provider can subcontract all of parts of

its services to other providers such subcontractors can also be

e-invoicing service providers if they meet the criteria set out in this

definition

Early payment discountAn early payment discount is offered by some companies to

motivate credit customers to pay sooner The early payment

discount is also referred to as a prompt payment discount

or cash discount The seller often refers to the early payment

discount as a sales discount while the buyer may refer to the

early payment discount as a purchases discount

Electronic bill presentment and payment (EBPP)Electronic bill presentment and payment (EBPP) usually

consumer-oriented lsquobill payingrsquo presented and paid through

the internet Other terms such as internet bill presentment and

payment (IBPP) electronic bill presentment (EBP) and online bill

presentment and payment (OBPP) are also in use

Electronic data interchange (EDI)Electronic data interchange (EDI) constitutes the electronic

communication of business transactions such as orders

confirmations and invoices between organisations Third-parties

provide EDI services that enable organisations with different

equipment to connect Although interactive access may be a

part of it EDI implies direct computer-to-computer transactions

into vendorsrsquo databases and ordering systems

Electronic funds transfer (EFT)Electronic funds transfer (EFT) represents the moving of funds

between different accounts in the same or different banks

through the use of wire transfer automatic teller machines

(ATMs) or computers but without the use of paper documents

Electronic invoice life cycleA process comprising a) the issue of the electronic invoice by or

in name and on behalf of the supplier b) receipt of the invoice by

or on behalf of the buyer and c) storage of the electronic invoice

during the storage period by or on behalf the supplier and the

buyer

Electronic invoice presentment and payment (EIPP)Electronic invoice presentment and payment has originated

in the B2B world and describes the process through which

companies present invoices and organise payments through the

internet


Electronic invoicingElectronic invoicing represents the management of an electronic

invoice life cycle without the use of paper-based invoices as tax

originals

Electronic payablesA form of electronic payment using the card infrastructure

managed centrally within an organisation typically by accounts

payable (AP) Also known as electronic accounts payable (EAP)

automated payables e-payables push payments straight

through payments (STP) buyer initiated payments (BIP) single-

use accounts and electronic invoice presentment and payment

(EIPP) Each provider has a proprietary name for its particular

solution functionality and processes vary for each

Electronic procurementElectronic procurement represents the use of the internet or a

companyrsquos intranet to procure goods and services used in the

conduct of business An e-procurement system can streamline

all aspects of the purchasing process while applying tighter

controls over spending and product preferences

Electronic signatureAn electronic signature or e-signature is any electronic means

that indicates either that a person adopts the contents of an

electronic message or more broadly that the person who claims

to have written a message is the one who wrote it (and that the

message received is the one that was sent) By comparison

a signature is a stylised script associated with a person In

commerce and the law a signature on a document is an indication

that the person adopts the intentions recorded in the document

Both are comparable to a seal

Electronic statement presentation (ESP)It refers to the electronic presentment of a variety of other

commercial documents apart from invoices such as account

statements purchase orders delivery notifications and others

Not included are many unstructured documents that are

exchanged

Enterprise resource planning (ERP) Enterprise resource planning (ERP) is an integrated information

system that serves all departments within an enterprise Evolving

out of the manufacturing industry ERP implies the use of

packaged software rather than proprietary software written by or

for one customer ERP modules may be able to interface with an

organisationrsquos own software with varying degrees of effort and

depending on the software ERP modules may be alterable via

the vendorrsquos proprietary tools as well as proprietary or standard

programming languages

EscrowEscrow is a financial instrument held by a third-party on behalf

of the other two parties in a transaction The funds are held by

the escrow service until it receives the appropriate written or oral

instructions or until obligations have been fulfilled Securities

funds and other assets can be held in escrow

FFactorThe factor is a financial entity providing factoring facilities

FactoringFactoring is an agreement between a business (assignor) and

a financial entity (factor) in which the assignor assignssells its

receivables to the factor and the factor provides the assignor

with a combination of one or more of the following services with

regard to the receivables assigned advance of a percentage of

the amount of receivables assigned receivables management

collection and credit protection Usually the factor administers

the assignorrsquos sales ledger and collects the receivables in its

own name The assignment can be disclosed to the debtor

Faster PaymentsFaster Payments enable interbank funds transfers in near real

time typically initiated via the internet or phone The Faster

Payments Service represents the biggest advancement in UK

payments for several decades and is designed to run in parallel

with the existing Bacs and CHAPS services Other financial

institutions are able to join either as members or to access

the system through agency arrangements with a member in the

same way they do with other payment systems


Fleet CardA fleet card is a specialised commercial card used to capture

fleet-related expenses (eg fuel vehicle maintenance repair

and service)

Four-party payment systemThe four-party payment system is a card payment system

involving the end-user and issuer on one side and the merchant

and acquirer on the othermdashall of whom are linked by the network

includes the Visa and MasterCard models

GGlobal process owner (GPO)A global process owner is a professional who has (or should have)

complete ownership of an end-to-end process globally This

means that once the correct process has been established there

should be no process deviation unless approved by the global

process owner A global process owner has final approval of the

adoption of any technology affecting the given process

IInterchange feesThe interchange fee also called the discount rate or swipe fee

is the sum paid by merchants to the credit card processor as a

fee for accepting credit cards The amount of the rate will vary

depending on the type of transaction but averages about 2 of

the purchase amount The interchange fee is typically higher for

online purchases than for in-person purchases because in the

latter the card is physically present and available for inspection

InteroperabilityInteroperability is the ability of making systems and organisations

work together (inter-operate) While the term was initially defined

for information technology or systems engineering services to

allow for information exchange a more broad definition takes

into account social political and organisational factors that

impact system to system performance Another definition refers

to interoperability as being a task of building coherent services

for users when the individual components are technically different

and managed by different organisations

InvoiceAn invoice is an itemised bill for goods sold or services provided

containing details such as individual prices the total charge and

payment terms

Invoice discounting Invoice discounting is a form of short-term borrowing often used

to improve a companyrsquos working capital and cash flow position

Invoice discounting allows a business to draw money against its

sales invoices before the customer has actually paid

Invoice financeSee Debtor finance

Invoice trackingInvoice tracking represents the process of collecting and

managing data and information about an Invoice Item and its

various traits andor states as it is followed or tracked throughout

different phases of its life cycle (lifecycle)

LLevel I dataIt refers to standard transaction data including date supplier and

total purchase amount Also written as lsquolevel 1rsquo data

Level II dataIt represents the enhanced transaction data including Level

I data plus a customer-defined reference number such as a

purchase order number and separate sales tax amount Also

written as lsquolevel 2rsquo data

Level III dataIt constitutes the detailed transaction data including Level II data

plus line-item detail such as the item purchased Sometimes

referred to as simply lsquoline-item detailrsquo Also written as lsquolevel 3rsquo

data

Line-item detailIt is a transaction data reflecting what was purchased See also

Level III data

NNetwork providerA network provider is a service provider that connects directly to

both the supplier and the buyer The supplier or buyer is required

to make only one connection to the network provider enabling

them to connect to multiple buyers andor suppliers With an

e-invoicing network there is no requirement to interoperate as

connection is independent of data format and a global network

enables the flow of data cross-border


OOne cardOne card is a type of hybrid card in which a single card is issued

to an employee for more than one category of expenses (eg

goodsservices and travel expenses) eliminating the need to

carry two separate cards

One card plus fleetA single card used for purchasing travel and fleet-related

expenses (fuel vehicle maintenance others) It combines the

functionality of a P Card corporate card and fleet card

OpenPEPPOL OpenPEPPOL is an open point-to-point network of sending

receiving web services to cover all of Europe it is currently

primarily in use in Finland the Netherlands Norway and Sweden

CENBII v1 is the base format but domestic transfers might use

a localised version

Order-to-cashOrder-to-cash also known as OTC or O2C is the end-to-end

process by which companies receive an order from a customer

deliver the goods or services raise the invoice for the transaction

to send to the customer and receive the payment from the

customerrsquos bank account Increasingly the OTC process (which

is part sales and part accounts receivable) is being managed as

an end-to-end process See also Accounts Receivable

PPACPAC stands for Authorised Provider of Certified Tax Receipts via

Internet Authorisation as a PAC is issued by SAT after an entity

proofs the technical and legal requirements to ensure the safety

capacity and infrastructure of the provider in delivering services

to the taxpayer

Peer-to-peer (P2P) lending A method of debt financing that enables individuals to borrow

and lend money ndash without the use of an official financial institution

as an intermediary Peer-to-peer lending removes the middleman

from the process but it also involves more time effort and risk

than the general brick-and-mortar lending scenarios

PO flippingPurchase order (PO) flipping happens when a supplier receives a

purchase order from its customer through a supplier portal and

at the time of raising an invoice converts the data provided in

the purchase order into the data on the invoice The benefit of

this process is that by the time the invoice has been received

by the customer the matching of the invoice with the purchase

order information will be perfect PO flipping is however only

appropriate for the type of supplier that uses a supplier portal

to create invoices typically a lower volume supplier See also

Supplier portals

ProcurementProcurement is the process of obtaining or acquiring goods and

services It also represents the department within an organisation

that is usually responsible for the development of requests for

proposals (RFPs) proposal analysis supplier market research

negotiations buying activities contract administration inventory

control etc Also referred to as purchasing sourcing or similar

term

Procure-to-pay (P2P) processThe steps the employees of an end-user organisation follow to

make a purchase and the associated payment An organisation

typically has different P2P processes for different types of

purchasespayments a P-Card P2P process is usually the most

streamlined Also referred to as purchase-to-pay or source-to-

settle process

Purchase order (PO)Purchase order is a written authorisation for a supplier to

deliver products andor services at a specified price according

to specified terms and conditions becoming a legally binding

agreement upon supplier acceptance

Purchase-to-pay processSee Procure-to-pay (P2P) process

Purchasing card (P-Card)A purchasing card is a type of commercial card used by

organisations to pay for business-related goods and services

end-user organisation must pay its issuer in full each month for

the total of all P-Card transactions Also called a procurement

card (ProCard) and purchase card


RRebateIt refers to money paid by an issuer to its customer (an end-user

organisation) in conjunction with the end-userrsquos commercial card

usage the rebate amount is based on various criteria as defined

within the contract terms between issuer and end-user Also

sometimes called revenue share

ReceivablesReceivables represent an asset designation applicable to all

debts unsettled transactions or other monetary obligations

owed to a company by its debtors or customers Receivables

are recorded by a companyrsquos accountants and reported on the

balance sheet and they include all debts owed to the company

even if the debts are not currently due

Receivable financeReceivable finance allows suppliers to finance their receivables

relating to one or many buyers and to receive early payment

usually at a discount on the value

ReconciliationThis is the matching of orders done by (internet) shoppers with

incoming payments Only after a successful reconciliation the

merchant will start the delivery process The extent to which

payment service providers carry out reconciliation and the way

in which they do so (sending an e-mail providing files) may vary

Reverse factoringReverse factoring is an arrangement made between large buying

organisations and banks with the intention to finance suppliers

and provide a lower buying price to the buyer Like lsquofactoringrsquo

there are three parties involved ndash the buyer supplier and the

factoring company (in this case typically a bank) The bank

takes on the responsibility to pay the supplierrsquos invoice early

for a discounted price The buyer then settles with the bank

according to the terms of the original invoice The supplier has

offered or agreed to a discount based on early payment and this

discount is shared between the bank and the buyer

SSales tax (VAT)Referred to as value added tax in the UK or sales tax in the

US this form of indirect tax is applied to almost all business

transactions It is the companyrsquos responsibility to add the tax

amount to its sales transactions and pay the tax on purchase

transactions At the end of each period (each quarter) it is the

companyrsquos responsibility to net off the charged tax on the sales

invoices and the paid tax on the purchase invoices and if there

is a positive balance to pay this to the government Increasingly

the management of VAT is moving into the shared services

organisation as this is where purchase and sales invoices are

processed

SettlementSettlement is the process by which merchant and cardholder

banks exchange financial data and value resulting from sales

transactions cash disbursements and merchandise credits

Shared servicesShared services refer to a business model which is largely

applied by mid-tier or enterprise-sized companies It is larger

companies who typically adopt shared services because scale is

one key element of the model The intention of shared services

is to run operations more efficiently and more cost-effectively

Using the finance function as an example shared services works

in the following ways Firstly it is the centralisation of a finance

activity the consolidation of systems that activity runs off the

standardisation of the processes that support that activity and

the automation (and continuous improvement) of that activityrsquos

processes Secondly it is the running of this centralised

consolidated activity as a ldquobusiness within a businessrdquo which

means the shared services organisation will often have its own

profit and loss account (PampL) will treat the rest of the business

as its customer will hire and develop service oriented staff will

possibly have service level agreements (SLAs) with its customers

and will charge for its services When a company centralises

a function it is not quite accurate to call it shared services

Centralisation is just one aspect of shared services


SOAP (Finvoice)Transmission frame (SOAP) specifies the sender recipient and

service provider data The service provider routes the message

to its recipient on the basis of frame data File may include

several Finvoice messages Each message must include a

transmission frame (SOAP)

SOAP (generic)Simple object access protocol (SOAP) is a web service protocol

or message framework for transferring XML-based messages

between web services BT does not support UBL directly but it is

able to identify and handle an UBL message wrapped in a SOAP-

envelope

Software-as-a-Service (SaaS)SaaS is a cost-effective way for companies to lsquorentrsquo software

without the burden of installation and maintenance because it is

supplied hosted (via the internet) and maintained by an external

vendor

Source-to-settle processSee Procure-to-pay (P2P) process

Small and medium sized enterprises (SMEs)

SMEs are organisations which employ fewer than 250 persons

and which have an annual turnover not exceeding EUR 50

million and or an annual balance sheet total not exceeding EUR

43 million

Split liabilityLiability for commercial card charges is split between the

cardholder and end-user organisation based on merchant

category codes for example the cardholder might be liable for

travel and entertainment (TampE) expenses while the organisation

is liable for the other transactions

Straight-through payment (STP)Straight-through payment (STP) is a specific version of electronic

payables an end-user organisation receives and approves a

supplier invoice then initiates payment to the supplier through its

issuer The supplier does not need to process a card transaction

as payment is made directly through its merchant account

SupplierThe supplier represents a merchantvendor with whom the

organisation does business

Supplier financeSupplier finance is a set of solutions that optimises cash flow

by allowing businesses to lengthen their payment terms to

their suppliers while providing the option for their large and

SME suppliers to get paid early See also Supply chain finance

Reverse factoring

Supplier onboardingThis refers to getting a supplier set up on a particular program

such as purchase-cards dynamic discounting or electronic

invoicing Supplier onboarding involves both the communications

concerning the process change and the supplierrsquos role within it

and the technical set-up of the program

Supplier portalA supplier portal is the front end of the e-invoicing or

e-procurement platform which enrolled suppliers connect to via

the internet Here suppliers can accept purchase orders change

profile information such as bank details and addresses flip

purchase orders (see PO flipping) and raise invoices Supplier

portals are generally used by low volume suppliers as the

supplier will have to re-key the data into its own billing system

One significant benefit for a supplier using a supplier portal is

that it gets full visibility of the invoice process namely when the

invoice will be paid

Supply chain finance (SCF)The use of financial instruments practices and technologies to

optimise the management of the working capital and liquidity

tied up in supply chain processes for collaborating business

partners SCF is largely lsquoevent-drivenrsquo Each intervention

(finance risk mitigation or payment) in the financial supply

chain is driven by an event in the physical supply chain The

development of advanced technologies to track and control

events in the physical supply chain creates opportunities to

automate the initiation of SCF interventions


Supply chain paymentsSupply chain payments optimises cash flow by allowing

businesses to lengthen their payment terms to their suppliers

while also providing an alternative option to their suppliers to get

paid early

TTrade financeTrade finance signifies financing for trade and it concerns both

domestic and international trade transactions Trade finance

includes such activities as lending issuing letters of credit

factoring export credit and insurance Companies involved

with trade finance include importers and exporters banks and

financiers insurers and export credit agencies as well as other

service providers

TreasuryTreasury is defined as the funds of a group institution or

government or to the department responsible for budgeting

and spending Another definition refers to treasury as being

the department of a government in charge of the collection

management and expenditure of the public revenue

Three-party payment systemThe three-party payment system is a card payment system

involving the end-user on one side and the merchant on the

othermdashlinked by the network which also fulfills the role of issuer

and acquirer includes the American Express and Discover

models

UUBL Universal Business Language (UBL) is an XML-based format with

corresponding business processes created by OASIS it amongst

others contains scenarios for sourcing ordering and billing Many

newer formats (EHF CENBII and OIOUBL) are localisations of UBL

20

UnderwritingIn B2B payments underwriting represents the department within

an acquirerprocessor organisation that evaluates the financial

stability and risk of a potential merchant customer

VValidation E-invoice XML-data is validated usually against schema which

means that the structure and content of the data is checked Failed

validation means that the invoice is going to be rejected by the

receiving operator which then sends negative acknowledgement

to sending operator which forwards the acknowledgement to

sender

Value addedThe enhancement a company gives its product or service before

offering the product to customers Value added is used to describe

instances where a firm takes a product that may be considered a

homogeneous product with few differences (if any) from that of

a competitor and provides potential customers with a feature or

add-on that gives it a greater sense of value

WWorking capitalWorking capital represents the cash and other liquid assets

needed to finance the everyday running of a business such as the

payment of salaries and then purchase of raw materials

XXMLThe Extensible Markup Language (XML) is a flexible markup

language for structured electronic documents XML is based on

SGML (standard generalised markup language) an international

standard for electronic documents XML is commonly used by

data-exchange services to send information between otherwise

incompatible systems

Contact us

EditorsMirela AmarieiTiberiu AvramDaniela CiobanuOana IfrimAnda KaniaEmil JuverdeanuSebastian LupuMadalina MocanuAndreea NitaAdriana ScrepnicMihaela Mihaila

RELEASE VERSION 10MAY 2016 COPYRIGHT copy THE PAYPERS BV ALL RIGHTS RESERVED

TEL +31 20 893 4315 FAX +31 20 658 0671MAIL EDITORTHEPAYPERSCOM

B2B Payments Supply Chain Finance amp E-Invoicing Market Guide 2016




















































management


































































elaborate article




















com email address

Mirela Amariei



Table of contents

37

11

1213

1517

192022

25262830

3233

3637

39

414244


Thought Leadership







Table of contents

4748

50

52

54

5758

60

63646668

70

72

89





Glossary






















innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender


































































management


































































elaborate article




















com email address

Mirela Amariei



Table of contents

37

11

1213

1517

192022

25262830

3233

3637

39

414244


Thought Leadership







Table of contents

4748

50

52

54

5758

60

63646668

70

72

89





Glossary






















innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender

























































elaborate article




















com email address

Mirela Amariei



Table of contents

37

11

1213

1517

192022

25262830

3233

3637

39

414244


Thought Leadership







Table of contents

4748

50

52

54

5758

60

63646668

70

72

89





Glossary






















innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender

















Table of contents

37

11

1213

1517

192022

25262830

3233

3637

39

414244


Thought Leadership







Table of contents

4748

50

52

54

5758

60

63646668

70

72

89





Glossary






















innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender

















Table of contents

4748

50

52

54

5758

60

63646668

70

72

89





Glossary






















innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender





































innovation









































the market








Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender


















Nowrdquo -Bloomberg














































































their bank relation












ndash McKinsey












































10

Share this story






































wwwthepayperscom

Mirela Amariei



B2B Payments



Deutsche Bank








































structure


















Share this story






































gtbdbcom

Andrew P Reid


Deutsche Bank



Aite Group
























or houses)








accessed and used



























Source Aite Group


Share this story






































wwwaitegroupcom

Enrico Camerinelli




Traxiant

































































Share this story



























wwwtraxiantcom

Roger Bass


Blockchain



Orchard Finance










than once




























































Share this story






added value


















Kris Wielens




Innopay





































processes such as

































Share this story













transfers



















wwwinnopaycom

Gys Hough

ConsultantInnopay



SWIFT

























supplier and seller














Share this story






information data















Wim Raymaekers




wwwswiftcom



UniCredit































































Share this story





date the solution





























innovation



wwwgtbunicrediteu





sharedserviceslink














pay programmes




















the return






and Procurement





















behind the SFP


Share this story











required PR




a key stakeholder












Susie West


Exclusive interview



wwwtokenio

Marten Nelson

VP MarketingToken


Token






































and labs




like to share












































Share this story




Falguni Desai















quickly try again



















collaboration
















































access to capital






















optimisation

















wwwimlfraunhoferde

Share this story











risks

























INTIX












own future






Data problems













major impacts










































Share this story





be realised






technologies





























Commercial Payments



NAPCP


















resolve issues
























dollar savings













Share this story









detail second





























wwwnapcporg

Terri Brustad




KAE








payments space





























duty of care)



















payments











Share this story



































seamless experience





wwwkaecom

Chris Holmes


Trade amp Finance














relationships

























of understanding)



















































Finance 2016








inclusion









wwwiccwboorg

Alexander R Malaket


Share this story



SCF Community





















Dutch SMEs


































more on Europe
































18th November 2015

































wwwscfcommunityorg

Matthijs van Bergen



CEOCapital Chains

Share this story
































































competitors


Share this story















Magnus Lind




Anita Gerrits

























































better ROI



















Share this story













wwwg-raybiz

Anita Gerrits







100 FREE TICKETS

100 FREE TICKETS

Apply now on

Apply now on



Key topics 2016
















E-invoicing



Comarch EDI







































extracted data)

















MILLION DOCUMENTS


Capacity of up to



Service Desk in


ACTIVE USERS FROM

40 COUNTRIES


998



Share this story













its own way





























wwwcomarchcom





Simplerinvoicing


















partners


































opportunity
















Share this story











participants








platform














Jaap Jan Nienhuis










Regulation amp Law






































out in PSD2

































Share this story














launch new services






associated with it














Brendan Jones

Director




ABFA



































each and every year



















payment














Share this story























wwwabfaorguk

Matthew Davies




EESPA






































































Share this story


















minimalist strategy

















the Forum]



wwweespaeu

Charles Bryant



















































regulation











the sector



Share this story

















industry needs



wwwiaafinorg

Tony Duggan


Company profiles


Company CloudTrade








Active since 2010


Markets




B2B B2G




Proposition



















e-Archiving Yes





Yes

Printing No





No


Yes



Yes






Company Comarch






Global


Active since 1993


Markets




B2B




Proposition




Yes













Yes


e-Archiving Yes



Yes








No


Yes



Yes


Yes










Globally


Active since 2006


Markets




B2B B2C B2G




Proposition

















Yes


e-Archiving Yes



Yes



Printing No





Yes


Yes



Yes


Yes




Company Order2Cash


Website




Contact details

Active since

Keywords



Globally


2000


Markets




B2B B2C B2G




Proposition

























Yes






Yes













wwworder2cashcom









Global


Active since 2000


Markets




B2B B2G




Proposition




Yes













Yes


e-Archiving Yes





Yes

Printing Yes





Yes


Yes



Yes


Yes













Globally


Active since 2000


Markets




B2B amp B2G




Proposition





























































provider










































































issuer





























chain























transactions



expenses


































settlement position








cards








to businesses











the employee














its suppliers

























be repaid



payments


































definition



























buyer




internet




originals



























exchanged




































and service)





























payment terms



















data


Level III data




















a localised version












to the taxpayer















Supplier portals







term






settle process



















































processed

































envelope




vendor






43 million

















Reverse factoring





























paid early







service providers










models





20









sender
















B2B Fintech: Payments, Supply Chain Finance & E-Invoicing Guide 2016

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Transcript of B2B Fintech: Payments, Supply Chain Finance & E-Invoicing Guide 2016