Treasurers are using automation to tackle global commerce

The digital transformation of the marketplace has given rise to new e-commerce ecosystems that highlight the need for secure payment mechanisms while meeting the real-time imperatives of seamless customer service.

New business models born from the digital transition, such as manufacturer-led direct-to-consumer (D2C) digital storefronts, have further underscored the need for agile and consistent real-time B2B and business-to-consumer (B2C) payments. ecosystem, according to “Mapping the Global Commerce Future”, a PYMNTS and City collaboration.

Get the report: Mapping the future of global trade

D2C business models require flexible payment mechanisms that allow brands to provide instant refunds to consumers to ensure smooth user experiences and prompt payments to suppliers and contractors to limit supply chain disruptions.

Setting new expectations for B2B transactions

The massive shift from consumer payments to online conduits – where frictionless and transparent B2C transactions are the hallmark – has set expectations that interactions between buyers and suppliers should be as smooth and intuitive, Shamir Khaliqglobal head of treasury and commerce solutions at Citi, told PYMNTS in an interview.

Read more: Citi says innovative trade finance requires instant payments and digital platforms

For treasurers, digital transformation often means automating workflow wherever possible to remove friction from operations around payment processes, a key element to managing risk and promoting sustainable growth.

The economic challenges of the pandemic, coupled with increased liquidity for companies that have expanded their e-commerce operations, have made B2B efficiency more important than ever. For treasurers, this required powerful transaction management options that provide greater transparency and control.

Adopt a “smart cash” mindset

But the surge in interest in instant payments isn’t just about delivering payments on time; today’s treasurer needs access to a better overall user experience (UX). A suite of smart treasury tools can help them anticipate and manage upstream and downstream risks while supporting long-term sustainable growth.

Additionally, treasurers with a global e-commerce presence need access to payment features that enable their go-to-market experiences to be efficient and seamless.

These features may include access to real-time FX rates and real-time payment status updates. Treasurers need to optimize every aspect of their organization’s interactions with the global payments ecosystem rather than leaving critical aspects to the vicissitudes of the market.

Much of today’s global D2C supply chains have become streamlined and miniaturized, matching the transformation of retail into an ever-changing digital ecosystem. An increase in online B2C sales activity is leading treasurers to adopt a “smart cash” mindset.

A data-driven, technology-enhanced approach to cash management leverages technology to remove friction from the entire global marketing process, providing treasurers with transparency over operations and increased control over payment process.

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On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

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