Recently the Federal Reserve put out a request for information and feedback from the business community regarding the way businesses process payments from other businesses. This paper is called “Payment System Improvement: Public Consultation Paper.”
In this paper, the Federal Reserve laid out some of the issues that the United States faces with its current B2B payment systems. Most importantly, the current system is bogged down in checks, invoices, and paper processing. Their hypothesis is that what is needed is a real-time electronic payment system that could fix the issues facing businesses today.
The Federal Reserve laid out these parameters for the kind of system they imagined was needed:
- A real-time system that could validate the payer’s availability of funds.
- Real-time guarantees that there would not be a reversal of payment or return of payment.
- Real-time notification of the payment to both the payer and the payee.
- Almost real-time posting to the payer and payee’s accounts. Immediate availability of the funds to the payee.
- Eliminate the need for banking information to be revealed.
Creating a B2B payment system that could do all these things would significantly accelerate the pace of business, provide unprecedented security of funds, and put the U.S. at the forefront of global B2B commerce. In other words, it would enable faster, safer, smarter global trade. However, this level of innovation is not likely going to come from traditional B2B payment providers or banks. There is too much revenue at stake – $250 billion – to risk shaking the status quo. It is going to take a non-bank provider to answer the call.
Here at Traxpay, we are all about shaking up the status quo, and that’s what we’ve been doing since we started building our system in 2009 and publicly launching in May of 2012. When comparing the capabilities of Traxpay today to the needs outlined by the Federal Reserve, we not only match up, but go far beyond these requirements.
Traxpay is already operating real-time, 24/7, and handles “good funds only” transactions that bring immediate settlement, access, and availability of funds. The Traxpay platform also connects rich data and remittance to the transaction – any type and any size – to reduce mismatches and speed reconciliation. What’s more, we architected our system to work with existing corporate processes and workflows, including ERP, P2P, and O2C systems and more. And because we operate via a secure cloud and have a bank-grade private datacenter built and backed by our partner IBM, it means no big IT headache for B2B customers as they adopt and deploy, and our customers can rest assured all transactions are safe and secure.
Traxpay users like Restposten.de, flightright, Wurth, EOS and 30,000 B2B companies already have access to these advantages and trust Traxpay with multi-millions in transactions every month. With all the advantages it offers to businesses, Traxpay is fast becoming the provider of choice for B2B payment transactions.