Breaking Down the Payment Silos by ProQuest

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Breaking Down the
Payment Silos
As a B2B payments
ecosystem takes shape,
buying organizations are
looking for a “one-stop
shop” for all their
payments to suppliers
By Andrew K. Reese



     n an increasingly electronically enabled world, paper checks         MasterCard launched its Payment Gateway in October 2007

I    might seem like a quaint vestige of an earlier, slower age. And
     yet paper checks still account for nearly three-quarters of the
$36 trillion in B2B payments. Now, however, new B2B e-payment
                                                                          with the objective of capturing and processing virtually all of
                                                                          an enterprise’s electronic payments, whether through payment
                                                                          cards or electronic funds transfer (EFT).
ecosystems are taking shape that may finally tip the balance of              Shari Krikorian, vice president for advanced payments at
payments toward the electronic side and give buying organizations         MasterCard Worldwide, notes that traditionally companies have
a “one-stop shop” for managing all their payments to suppliers.           been sold different payment products in silos by their banks.
   The move to eliminate paper from the payments process is               “As a result, a single company might be supporting multiple
being driven, in part, by the quest to reduce this cost of doing          interfaces, multiple workstations, multiple connections and
business. “As corporations search for new ways to reduce costs,           disparate workflows for different payment types,” Krikorian says.
there is a fair amount of re-examination in how buyers handle their       “So there has been a desire to have all this brought together into
largely manual, paper-intensive business-to-business transactions         a single interface that could handle all payments.”
processes,” argues Celent, the financial services advisory firm, in its      Wells Fargo was the first bank to offer the MasterCard Payment
new report, “After the Purchase Order: Easing Pain Points in B2B          Gateway to its commercial customers. For the bank, the benefit
Transactions.” Celent writes that buying organization are looking         is increased “stickiness” with its cust
								
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