Hello, and welcome to the September 2018 edition of the Commercial and Enterprise Advisory Service newsletter. We provide a recap of our recent research documents available to members of this service on Mercator Advisory Group’s website, including a detailed review of the supply chain finance market, a procure-to-pay vendor comparison, and our forecast of commercial mobile payments into the next decade. We also preview forthcoming research as we move into Q4 of 2018.

Reports Highlighted:

Procure-to-Pay Convergence: Market Review and Vendor Comparison

Supply Chain Finance Market Review

U.S. Commercial Mobile Payments Forecast, 2016–2025



Procure-to-Pay Convergence: Market Review and Vendor Comparison

Mercator Advisory Group sees a transition in the procure-to-pay technology landscape and a future of convergence as companies that are providing solutions in each of the key delivery areas adapt to the next-generation technologies for an eventual connected digital cash cycle. This report reviews solutions that most directly affect the cash cycle, providing an overview of the procure-to-pay landscape and a detailed comparison of six vendors who are pursuing this space with solutions aimed at achieving a more completely integrated customer experience.

On the cusp of a new age with rapidly advancing technology it is sobering to realize that the modern digital capabilities for supporting these business cycle processes began appearing only about 20 years ago. This report is designed to help readers understand (and to some extent, evaluate) the systems and selected vendors that provide solutions in the sequence from procurement to payment. Mercator Advisory Group defines the “procure-to-pay” sequence as the processes and supporting systems necessary for procurement, invoicing, payment, and open account financing. The various solutions have been delivered over time in a generally fragmented way, with each key solution set having different specialty vendors. In this report we review the current and future state of the procure-to-pay technology landscape and some of the companies that are providing solutions in each of the key delivery areas.

See more at: Procure-to-Pay Convergence: Market Review and Vendor Comparison

Supply Chain Finance Market Review

The global economy in 2018 is projected by Mercator Advisory Group to total roughly $80 trillion, with the export of merchandise and services expected to be around $24 trillion. So trade finance is clearly a major indicator of how interdependent economic activity has become. International trade finance historically has been dependent on traditional methods (documentary collections and letters of credit), which have been heavily burdened by paper-based processes and industry esoterica. The move to open account types of trade financing, including supply chain finance, is still relatively new but is accelerating since the financial crisis.

This Mercator Advisory Group research report provides the latest views of the trade finance market and participants from both an international and a domestic purview and then dives into the continuing shift toward open account transactions. We address the supply chain finance (SCF) market in a number of ways. The report provides a detailed discussion of the key drivers that shape SCF. We discuss the most prevalent SCF tools in use, the different business approaches being taken by players in the space (banks and fintechs), and finally the ways in which emerging technology fits intoN the SCF space, both currently and into the next decade.

See more at: Supply Chain Finance Market Review



U.S. Commercial Mobile Payments Forecast, 2016–2025

The use of mobile technology in the commercial banking and payments landscape has been a neglected industry topic over the past several years, overshadowed by the fintech investment frenzy, fixation on blockchain potential, and more recently the onset of an open banking era (overlapped by interconnected topics such as application programming interfaces, or APIs, and faster payments). Part of the reason for the rather tepid interest in mobile technology is that its focus has been on the proximity payments channel (the point of sale, or POS), where corporate adoption naturally lags consumer behavior. Mobile payments adoption in general has been slow in the United States except for merchant-owned mobile wallets.

In this Viewpoint, we provide a clear and nontechnical discussion of the commercial mobile landscape, which at a high level consists of two channels that account for various types of direct and indirect payment activities, along with other services. These mobile channels are used by employees in conjunction with the same products and systems that they normally utilize to execute job functional requirements.

See more at: U.S. Commercial Mobile Payments Forecast, 2016–2025


Coming Research

During the next several months, we will be addressing various topics such as:

U.S. Commercial Credit Card Market Review

Faster Payments in Commercial Banking

B2B Marketplace Disruption

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.



Steve Murphy
Director, Commercial and Enterprise Payments Advisory Service