Visa announced on Thursday plans to allow client companies to pay through the SAP Financial Services Network, which is expected to help corporations automate and process invoice payments without the need for custom software.
“Corporations have long sought to simplify integration with their financial providers and take advantage of new services designed to optimize their payables and receivables,” Sanjay Chikarmane, the senior vice president and general manager of the information management and financial services network at SAP, said. “Integrating Visa’s payables solutions with ERP and finance systems via the SAP Financial Services Network is expected to help ease reconciliation and increase up-to-date visibility into cash.”
Companies are expected to be able to make Visa payments through their Visa Commercial issuer beginning in the summer.
Nearly half of an estimated $112 trillion in corporate payments are still paid by check. The new solution is designed to encourage and help companies to transition to electronic business-to-business payments.
“As companies shift from labor-intensive, paper-based processes to more efficient electronic procurement systems, having the option to pay with Visa will help simplify the process and bring many benefits,” Tad Fordyce, the senior vice president and head of global commercial solutions at Visa, said. “We anticipate that being able to make Visa payments via connection to the SAP Financial Services Network will help corporations streamline accounts payable processing, while avoiding the upfront and ongoing costs that would be associated with custom software for the payment process.”