Treasurers Turn to Automation to Tackle Demands of Global Commerce

The marketplace’s digital transformation has given rise to new eCommerce ecosystems that highlight the need for payment mechanisms that are secure while matching the real-time imperatives of seamless customer service.

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

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

Setting New Expectations for B2B Transactions

The massive shift of consumer payments to online conduits — where frictionless, seamless B2C transactions are hallmarks — has set expectations that interactions between buyers and suppliers should be as fluid and intuitive, Shahmir Khaliq, global head of treasury and trade solutions at Citi, told PYMNTS in an interview.

Read more: Citi Says Innovating Trade Finance Requires Instant Payments, Digital Platforms

For treasurers, the digital transformation often means automating workflow wherever possible to remove friction from operations concerning payments processes, a key component for managing risk and promoting sustainable growth.

The economic challenges of the pandemic, coupled with an increase in liquidity for those companies that expanded their eCommerce operations, has made B2B efficiency more important than ever. For treasurers, that’s necessitated powerful transaction management options that offer greater transparency and control.

Adopting a ‘Smart Treasury’ Mindset

But the surge in interest in instant payments is not 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.

In addition, treasurers with a global eCommerce presence need access to payments features that allow their commercialization experiences to be efficient and frictionless.

Those features might include access to real-time foreign exchange (FX) rates and real-time updates about payment status. Treasurers must optimize every aspect of their organization’s interactions with the global payments ecosystem rather than leaving critical aspects up to the market’s vicissitudes.

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

A data-driven, technology-optimized approach to treasury management leverages technology to remove friction from the entire global commercialization process, providing treasurers with transparency over operations and enhanced control over payments processes.