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Virtual credit card payments for Vendors/Suppliers using SAP Ariba and SAP Taulia can help stretch your Working Capital by providing "FREE" credit for upto 60 days - the time between card charge and paying the Bank after card statement, and earn cash rebates reducing the cost of the purchase. Virtual card payments are better alternative to Procurement Cards - since it is single use, specific to a Supplier, specific to PO or Invoice, has a maximum amount specified to be charged and offers other payment controls to make transaction secure which can be easily reconciled with Accounts Payable (AP) transaction records.
Help us build the right product for making Virtual Credit Card payments from SAP Ariba, by joining (registering) this Customer Engagement Initiative: Embedded Virtual Card Payments for SAP Ariba Procurement and SAP Business Network using Taulia (https://influence.sap.com/sap/ino/#campaign/3707)
Virtual cards are becoming increasingly essential in procurement applications like SAP Ariba. Virtual cards are revolutionizing B2B payments by offering a secure, efficient, and transparent alternative to traditional methods like checks or physical cards. Virtual cards are digitally generated, single-use or limited-use credit card numbers used for specific B2B transactions. Like physical cards, they have 16-digit numbers, expiration dates, and CVVs, but exist only online. Businesses can generate virtual cards through online platforms provided by financial institutions or fintech companies. They can set predefined spending limits, vendor restrictions, tie to particular purchase order(s) or invoice(s) or purchasing transaction(s), set activation and expiration dates for each card, ensuring tight control over expenses. Once created, the card details can be used for online payments or through mobile wallets for in-person transactions. Integrating virtual card functionality into procurement applications like SAP Ariba offers a multitude of benefits for both buyers and suppliers, streamlining the procurement process, enhancing security, and boosting overall efficiency.
Depending on the source, there are varying statistics regarding B2B virtual card usage. RFI / Visa study says the global value of virtual card transactions is expected to increase from $1.9 trillion in 2021 to an astronomical $6.8 trillion by 2026 and the global B2B virtual card market is expected to reach a staggering USD 1,291.05 billion (or USD $1.3 Trillion) by 2030, growing at a CAGR of 21.15% (Straits Research).
Benefits for B2B buyers:
Enhanced security: Eliminates risks associated with physical cards, like loss, theft, or data breaches. Each transaction generates a unique number, minimizing fraud exposure.
Improved payment control: Predefined spending limits and vendor restrictions ensure compliance with company policies and prevent unauthorized purchases.
Streamlined reconciliation: Real-time transaction data simplifies expense tracking and reconciliation, saving time and resources.
Faster payments: Virtual cards facilitate instant payments, improving supplier relationships and potentially earning early payment discounts.
Increased transparency: Detailed transaction data provides valuable insights into spending patterns, helping optimize budgets and negotiate better deals with vendors.
Benefits for B2B sellers:
Guaranteed payment: Reduces the risk of bounced checks or delayed payments.
Faster transaction processing: Streamlined payment process leads to quicker funds receipt.
Simplified reconciliation: Virtual cards provide consistent data format for easier reconciliation.
Improved cash flow: Faster payments and reduced manual processing contribute to smoother cash flow management.
Don't delay – register today on Embedded Virtual Card Payments for SAP Ariba Procurement and SAP Business Network using Taulia / https://influence.sap.com/sap/ino/#campaign/3707 and be a part of the SAP Customer Engagement Initiative Cycle 2 in 2024!
