Mercator Blog

Commercial and Enterprise Payments Advisory Service Update
Date: May 31, 2017
Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service

 


Welcome to the May 2017 edition of the Commercial and Enterprise Payments Advisory Service newsletter. This recap of 2017 year-to-date research by this service lists the most recent publications (with links to summaries on the Mercator Advisory Group website) followed by reviews of reports on the international commercial card market as well as emerging corporate payables.


Report Summaries:

  1. Digitizing the Payments Cash Cycle: Advancements and Partnerships
    Highlighted below
  2. The Enemy at the Gates: Payments Fraud Is a Symptom
    Highlighted below
  3. Improving Receivables Management: Ignore at Your Own Peril
    Highlighted below
  4. Fintechs Now Can Apply for National Bank Charters: Update—Has the Train Stalled?
    A ForeSight report that delves into the implications of the OCC’s intention to grant national banking charters to fintech companies
  5. Commercial Card Global Markets: Travel and Virtual Accounts Driving Growth
    A detailed report on the latest trends in commercial cards outside of the North American markets, including forecasted volumes through 2020
  6. Emerging Technology in Corporate Payments? Faster Strides but Legacy Providers Remain the Leaders
    A ForeSight report that discusses whether or not disruption is already upon us and expectations over the next several years

The Enemy at the Gates: Payments Fraud Is a Symptom  

Payments Fraud

Cybercrime is a global and growing phenomenon tied to a combination of factors including the new era of global economic interdependency along with rapidly changing technology, which are creating opportunities for criminals to find new and often faster ways to defraud businesses of all sizes. Data breaches will inevitably lead to follow-on criminal activities that take advantage of people, process holes, and systems cracks to transfer wealth from legitimate sources to fraudsters across the globe. A range of activities should be undertaken by companies to create better protective cover around their organizational data and prevent or limit the damage from payments fraud.

This report addresses the increased cyberthreat faced by financial institutions and their clients and the vulnerabilities to payments fraud schemes. Payments fraud is a symptom of the broader issue of cybercrime, but it can also be controlled or minimized somewhat independently. In this report, Mercator reviews the issues underlying the global threat, discusses how they relate to payments fraud, and identifies actions that financial institutions and their clients can take to help manage the threat going forward.

See more at: The Enemy at the Gates: Payments Fraud Is a Symptom 

Digitizing the Payments Cash Cycle: Advancements and Partnerships

 Payments Cash Cycle

Businesses around the world are slowly but surely transforming from expensive and business-limiting manual processes to digital processes that enable them to be digitally connected enterprises. Banks and technology vendors are helping this transformation by providing latest-generation technologies. The transformation is not occurring at the speed with which technology is advancing, for a number of reasons. However, with the expected growth environment and inevitable rising rates, along with competitive pressures related to the interconnected world, working capital effectiveness will become a primary focus and drive faster adoption of business cash-cycle technology, from procurement through financial reconciliation.

This research report describes the latest technology solutions supporting the procure-to-pay space and methods for connecting the various tools continually being added. Procurement, e-invoicing, payments, and alternative financing are being digitized and integrated for the optimal performance in managing working capital, and the report states reasons why this is a critical need as companies move further into the era of a high-tech global economy.

See more at: Digitizing the Payments Cash Cycle: Advancements and Partnerships


Improving Receivables Management: Ignore at Your Own Peril

 Receivables Management

The business cash cycle and importance of managing the key elements of working capital remains a top focus of successful companies. While payments technology and effectiveness have gained the lion’s share of attention and investment during the technology surge of the past several years, receivables management capability is a major component of cost efficiency, cash flow effectiveness, and client satisfaction. Since it is also one of the more difficult parts of the cash cycle to influence, forward-thinking companies and their financial services providers should be taking a close look at prioritizing the important set of receivables processes and supporting technology.

See more at: Improving Receivables Management: Ignore at Your Own Peril


Coming Research


During the next several months, we will be addressing various topics. Research in progress includes:

  1. A report reviewing the fleet card market’s volumes and latest trends
  2. A viewpoint on the impact of mobile in commercial payments and the longer-term outlook
  3. A vendor review of those providing supply chain finance solutions

As always, feel free to reach out to Mercator Advisory Group to talk about anything payments and potential research topics that would be of interest to you and your team. Thanks, and feel free to send a message to me at any time. My email is smurphy@mercatoradvisorygroup.com. You can also call me at 1-781-419-1710.

 

Regards,

Steve

Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service