In today’s fast-paced business world, staying competitive requires more than just hard work. It demands innovation, efficiency, and smooth financial operations. As companies grapple with increasingly complex payment processes and cash flow challenges, having a smart, streamlined solution is no longer optional — it’s essential.
That’s where the powerful collaboration between SAP Business One and Visa B2B Integrated Payments (VBIP) steps in, offering an embedded payment solution designed to simplify transactions, strengthen cash flow management, and supercharge financial efficiency.
In this blog, we’ll dive into how this dynamic partnership is revolutionizing payment workflows, explore the game-changing features of VBIP, and uncover the major trends reshaping the commercial payments landscape. Get ready to discover how your business can gain a competitive edge through smarter financial operations!
Visa: A Trusted Global Payment Network
Visa is a world leader in digital payments, offering a reliable and expansive network for consumers, businesses, and governments worldwide. With a mission to provide the best ways to pay and be paid, Visa’s infrastructure supports billions of transactions globally. Let’s look at some key highlights of Visa’s payment network:
- Broad Reach: With 4.5 billion cards in circulation, Visa has established itself as a global payment powerhouse.
- Merchant Acceptance: Over 130 million merchant locations in more than 200 countries and territories accept Visa payments.
- Transaction Capacity: Visa processes US$15 trillion in payment volume and handles 269.8 billion payment transactions annually.
Visa’s “Network of Networks” * provides the infrastructure to connect buyers and suppliers, fostering efficiency and maximizing transaction capture. With a strong focus on innovation and evolving payment capabilities, Visa continues to lead the charge in enhancing payment processes for businesses worldwide.
*Moving money to all endpoints and to all form factors, using all available networks and being a single connection point for Visa’s partners and providing value-added services on all transactions, no matter the network (source: Visa annual report).
Emerging Trends in Commercial Payments
The commercial payments landscape is undergoing significant transformations driven by key emerging trends – Why Commercial Payments ? Understanding these trends helps businesses stay ahead and leverage opportunities for growth and efficiency
These trends underscore the need for innovative payment solutions like SAP Business One and Visa B2B Integrated Payments, which seamlessly integrate with ERP platforms.
Visa B2B Integrated Payments (VBIP)
SAP and Visa, in in partnership with Axxis Consulting, have introduced VBIP, a groundbreaking solution that simplifies and secures payment processes within SAP Business One (SAP ERP). VBIP allows businesses to pay all suppliers, whether they accept cards or not, through a single workflow directly within the SAP platform.
Key Highlights of VBIP
- Unified Payment Process: Pay with Visa commercial cards within SAP Business One, regardless of the supplier’s card acceptance status.
- Seamless Reconciliation: Complete payments and reconciliation directly within SAP Business One without switching between multiple platforms.
- Extended Payment Terms: Benefit from up to 55 days of extended payment terms for both card-accepting and non-card-accepting suppliers.
- Real-Time Monitoring: Monitor payment and reconciliation status directly within SAP Business One.
- Cost-Effective Payments: No additional fees for card-accepting suppliers. Charges for non-card-accepting suppliers are managed separately by Visa’s appointed payment processor.
Benefits of SAP Business One and Visa B2B Integrated Payments
Visa B2B Integrated Payments offers numerous advantages for businesses looking to optimize their financial operations:
1. Enhanced Cash Flow Management
VBIP allows businesses to extend payment terms up to 55 days, providing better control over capital and expenses. This extended credit period can help companies manage cash flow more effectively and reduce the strain on working capital.
Illustrative Example:
- Invoice Amount: RM100,000
- Net Payable Amount after 2% Early Payment Discount (EPD): RM98,000
- Transaction Fee (1.08% of RM98,000): RM1,058
- Total Amount Payable: RM99,058
- Savings : RM942
This example demonstrates how businesses can continue to benefit from Early Payment Discounts (EPD) even after accounting for transaction fees.
2. Increased Operational Efficiency
By embedding payments directly within SAP Business One, VBIP eliminates the need for multiple payment platforms. This streamlined approach reduces administrative tasks and enhances operational efficiency.
3. Real-Time Payment Tracking
VBIP provides real-time visibility into payment and reconciliation status, enabling businesses to monitor and manage their financial transactions more effectively.
4. Cost Savings Opportunities
With VBIP, businesses can take advantage of EPD from their suppliers while offsetting transaction fees. This approach not only saves money but also strengthens relationships with suppliers by ensuring timely payments.
How SAP Business One and Visa B2B Simplify Payment Processes
- Payment Initiation: The buyer initiates payment using a Visa commercial card through VBIP within SAP Business One.
- Payment Processing: VBIP processes the payment, regardless of whether the supplier accepts card payments.
- Reconciliation: Payments are automatically reconciled within SAP Business One, reducing the need for manual intervention.
- Payment Monitoring: Businesses can track payment and reconciliation status in real-time.
Steps to Onboard VBIP with SAP Business One
Getting started with Visa B2B Integrated Payments is simple and straightforward:
1. Visa B2B Solution Overview: Gain a comprehensive understanding of the solution.
2. VBIP Installation: Installation by Axxis Consulting, which typically takes up to two days.
3. SAP Business One Platform Launch: Corporates log in, launch VBIP, and agree to the terms and conditions.
4. Visa Credential Registration: Complete a one-time onboarding process to register Visa credentials.
5. Payment Initiation: Start making payments seamlessly within SAP Business One.
Realizing the Value of SAP Business One and Visa B2B Integrated Payments
The integration of Visa B2B Integrated Payments within SAP Business One provides businesses with a competitive edge by enhancing payment processes and cash flow management. By embedding payments into ERP workflows, organizations can:
- Strengthen Supplier Relationships: Ensure timely payments and take advantage of early payment discounts.
- Optimize Cash Flow: Gain better control over financial operations with extended payment terms.
- Improve Efficiency:
Reduce administrative tasks and streamline payment processes. - Enhance Financial Visibility: Monitor and track payments in real-time for better decision-making.
Conclusion
As businesses face increasing challenges in managing payments and cash flow, innovative solutions like SAP Business One and Visa B2B Integrated Payments are essential for success.
The partnership between SAP, Visa, and Axxis Consulting offers a powerful tool to optimize financial operations, improve cash flow management, and drive efficiency. By embedding payments directly within SAP Business One, organizations can stay ahead in a competitive landscape while leveraging the trusted and expansive network of Visa.
If your organization is looking to transform its payment processes and gain a competitive advantage, now is the time to explore the benefits of SAP Business One and Visa B2B Integrated Payments.