How to Solve the 4 Main Payments Challenges

Sascha Kopp
Read time: 4 mins
How to Solve the 4 Main Payments Challenges - Image

Coupa Treasury consultants have collected years of experience working with implementation projects, scoping workshops, and much more of hands-on experience working with real treasurers. One topic of which is payments and payment implementation projects. We have gathered some of the key questions they have addressed over the years. Here are some key challenges we have noticed. 

#1 payments challenge: a complex set-up

What is the biggest challenge for international businesses in handling their payments?
When it comes to payments, the biggest challenge for companies is usually their existing set-up. Very often we witness the following: You have banks on one side, ERP systems on the other side, and the individual entities in the middle. They all exchange payment data, generated by various technologies and in different formats, communicated by several channels. Companies find it difficult to manage this complexity.

Payments Lifecicle Overview

How can companies make sense of this complex set-up of several e-banking systems, payment platforms and communication channels?
A payments solution, such as Coupa Treasury, allows corporates to leave complex set-ups behind: instead, they experience simplicity with one platform that is accessible to all group companies and connected to all ERP systems and banks. Coupa Treasury can be used with any payment format.

You can access it on a desktop computer, mobile phone or tablet. All you need is Internet access. One of the many benefits of this solution is that it is scalable and can be adapted to changing company requirements – and we all know companies change all the time.  Every time a new entity is added, no matter where in the world, this company and its banks can easily be connected to the payment platform. There is no need for an additional solution. Coupa Treasury handles it all and is easy to use, transparent and secure when communicating data.

Payments Livecicle overview

#2 payments challenge: fraud and cyber crime

How important is payment fraud?
Fraud, cyber crime and internal manipulation have been increasing dramatically for years. In 2016, the Leoni Group lost 40 million euros to payment fraud. In 2017, ABB reported a fraud case amounting to 100 million dollars. Companies lose more and more money and the number of attacks has been growing. This was confirmed by the AFP Payments Fraud & Control Survey published in April 2019: 82% of companies report having fallen victim to payment fraud.

How can companies best protect themselves against payment fraud?
Organizations currently invest a lot of time and money in fraud prevention. The best way of achieving payment security is to eliminate vulnerabilities, i.e. by using a multi-bank payments platform with integrated user permissions management such as Coupa Treasury. Thanks to a single point of entry and an additional security measure by way of 2-factor authentication in the Treasury Connect app, Coupa Treasury protects companies from external threats. The integrated permissions functionality enables companies to define and manage user rights and implement dual approval for payment processing, thus ensuring compliance.

#3 payments challenge: cost

How can companies save money in their payment process?
In addition to bank fees, payments processing eats up resources. For most companies a centralized set-up is the most efficient – as well as the most secure – option to manage group-wide payments with only one team. As a web-based system, Coupa Treasury also enables decentralized cooperation using a central platform.

What is the most affordable payments set-up for companies?
The most cost-efficient combination of formats and connectivity always depends on the countries in which payments are processed as well as on the volume of payments. Coupa Treasury offers all types of connectivity, be it local standards such as EBICS, host-to-host connections to main banks or a global solution such as SWIFT. Coupa Treasury consultants offer advice on how to find the most affordable solution.

#4 payments challenge: new banking partners

What is the impact of changes to the banking landscape on corporate payments?
Companies are hit hard by changes to the banking landscape. In recent years, some banks have discontinued their services in some countries over night. But even when the selection of a new banking partner is driven by strategic and cost reasons, this change usually goes hand in hand with a new, additional e-banking system.

But it could be so much simpler: Companies who process their payments on the integrated payments platform in the treasury management system always work with the same user interface. This user interface is independent of the banks, channels and payment formats a company uses.

All in all:

Make the move to a central, multi-bank payments platform and benefit from:

  • compliance
  • security
  • reduced cost and effort
  • 100% visibility and transparency
  • 100% cash flow visibility
  • 100% independence thanks to self-administration

Time to discover Coupa's range of treasury services.