Giving businesses control over their cash flow around the world is clearly the way that the payment services industry is venturing. There are a variety of secure services to help businesses improve the way they manage funds and make payments, while maintaining their records and importing data directly into their own accounting systems.
In today’s global economy, organisations find increasingly that they need to be financially agile and responsive, reacting to wherever the business is being taken. Internet payment and cash management services (IPCM) help make this possible. IPCM solutions enable businesses to access and control cash quickly and efficiently around the world. Specialist teams work closely with these businesses to develop a secure, cost-effective solution to their overseas investment and payment needs.
These online solutions offer a simple, convenient and cost-effective way to make regular payments via the internet. A dynamic and intuitive interface guides the user through the payment creation process, enabling them to submit straight-through processing (STP) payments that will require no intervention by the cash manager or treasury services company. Consequently, these become a highly cash-efficient method of making payments when compared to the standard tariff for non-STP transactions.
Although these solutions tend to be designed as standalone products, we are now seeing an increase in payment services to complement an existing suite of treasury management solutions and being solely internet-based. This new offering bridges the gap between cash-based investment accounts and the requirement to pay balances away, anywhere in the world, quickly, cost-effectively and efficiently.
The technology at the heart of the solution is a virtual payment system for both payables and receivables. At the core of this system is a facility which provides businesses with swift access to domestic payment mechanisms in foreign jurisdictions, thereby eliminating the need for third party clearing house intervention. We are seeing increased key involvement in software advancement from treasury service companies, which are dedicated and committed to developing and refining the solutions on offer.
By engaging with businesses directly, it is easier to ensure that specific payment needs are met as well as orchestrating and facilitating successful client trials. Often these software trials result in extremely positive feedback which is taken on-board, further developed and tested, thereby creating a completely flexible and intuitive system.
In addition treasury service companies are looking to their existing product range for opportunities to splice them directly with an IPCM solution. This creates a sophisticated secure online system for streamlining cash management processes with no third-party involvement, thus attracting fewer charges and making these an extremely cost-effective solution. The use of new technology results in a highly efficient product that meets the needs of an extremely demanding payments market.
By using an IPCM solution, businesses do not have to spend time on maintenance, thus reducing costs because the solutions are web-based and the treasury service company hosts the software. Businesses do not have to install any upgrades, as they are dealt with immediately and centrally by the treasury service company or software developer. More importantly, businesses benefit from the security of dealing with regulated entities which are committed and dedicated to forming long-term relationships and becoming a trusted partner.
Virtual payment and money transmission requirements are rapidly growing as part of any modern business, offering the advantages of seamless integration into existing reporting and accounting infrastructures.
A decline in the return on capital employed of globally listed companies over the last decade has been noted in recent EY and PWC reports. This is despite businesses taking an increased focus on balance sheets since the financial crisis in 2008.
Europe’s opening banking regulation is finally here. After months of preparation across the continent, the Revised Payment Services Directive comes into effect on January 13.
The revised Payment Services Directive regulation, regarded as one of the most disruptive in Europe’s financial services sector, will begin to make an impact on January 13, 2018.
This year promises to further the regulatory compliance burden imposed on financial institutions. How are firms in the sector responding to the challenge?