Blockchain Transforming Corporate Payment
Corporate payments refer to all sorts of cash transfers – both internal and external – executed by companies. Sending out and collecting payments is a cumbersome task for treasury departments, as it requires considerable magnitudes of time and effort.
The Staggering Disparity
The disparity between retail and corporate payments is jaw dropping. While a retail purchase takes a few kew punches, the corporate counterpart moves around tables in the form of a requisition. For example an employee makes a purchase of stationery for home needs in a matter of minutes while it may take days of following procurement protocol to make office purchases of the same stationery.
Fragmented Banking Relationships
A lot of corporates still maintain fragmented relationships with banks. Majority of banks still approach corporate clients via different business lines like trade, cash and treasury business. This translates to relationships based on silos and standalone payment solutions at business level instead of forming a common payment solution at the corporate level.
Rigid and Traditional Paper-based Requisition Form
Many corporate firms stick to the age old format involving paper and pens for procurement of office supplies. The process is manually routed around the tables involving reconciliation between purchase orders, goods received notes, bank accounts, Accounts Receivable, Accounts Payable, and customer contracts.
Resolution
Blockchain based solutions make it possible to securely break-off from the outdated in-house purchase policies by a shaft of benefits.
Shorten the processing time by online exchange of documents and instant settlement through secure channels.
Live monitoring of account balance makes it possible to manage working capital accordingly.
Information sharing and reconciliation among parties happen real time, thus, building trust.
Reconciliation transactions automated with other financial institutions
Using Smart contracts to automate critical business processes.
Data remains protected on the immutable ledger that forms the basis of blockchain technology.
Utilities
- Enables Banks to use this platform to finance corporate trades.
- Enables Corporate houses to make vendor payments.
- Enables Central Banks to facilitate wage disbursement.
- Enables Clearing houses to replace or build new clearing systems.
- Facilitates customization to any B2B payments use case.