In its latest move to build up its treasury offering, banking giant Goldman Sachs has partnered with Germany-based software company SAP which will enable clients to make payments through SAP’s Ariba Network, a digital marketplace with $3.2 trillion of annual transactions.
According to a press release, this partnership will allow businesses to pay their foreign suppliers in local currencies at a lower cost with competitive foreign exchange rates. Businesses will also be able to track their payments in real-time and improve their operational efficiency through the reconciliation of payments with corresponding invoices.
“Partnering with Goldman Sachs Transaction Banking allows us to deliver more innovative financial solutions, starting with these cross-border payment capabilities, which is critically important for so many of our customers on Ariba Network doing business in the global economy today,” said Executive VP of Network and Ecosystem at SAP Procurement Solutions Sean Thompson.
Businesses will be able to improve their control over foreign exchange payments and currency exposures in procurement and treasury. The payments can be done in each party’s preferred currency thus improving the buyer-seller relationship.