The collaboration aims to democratise Embedded Finance for businesses on a global scale. Specifically, Visa's digital payments technology will be integrated into Taulia Virtual Cards, a solution interfacing with SAP enterprise resource planning (ERP) systems and business applications. This integration seeks to optimise the payment experience for both buyers and suppliers.
The partnership between Visa and Taulia is poised to simplify payments within the business ecosystem by enabling virtual payment credentials to operate across SAP business applications. Through this planned integration, Visa's APIs will embed virtual payment credentials, acceptance and enablement solutions directly into SAP business applications.
This joint solution will aid CFOs, procurement, and accounts payable teams in automating payments to suppliers, particularly beneficial for one-time payments, eliminating the need for extensive master data creation in the system – a process that historically could take weeks or months. Suppliers stand to benefit from improved cash flow and visibility, reducing friction in B2B transactions. This partnership and resultant solution replace a previously manual reconciliation process for buyers.
The digital payments industry is undergoing rapid transformation, driven by technological advancements and shifting consumer behaviour. Recent trends indicate a growing preference for digital payment methods, including mobile wallets, contactless payments, and online transactions. According to industry reports, the global digital payments market is projected to reach unprecedented heights, with a compound annual growth rate (CAGR) of over 10% in the coming years.
Amidst this landscape, partnerships between fintech companies and established players like Visa and SAP are becoming increasingly common. These collaborations aim to leverage each partner's strengths to deliver solutions that meet the evolving needs of businesses and consumers alike. With the integration of Visa's digital payments technology into Taulia Virtual Cards, the partnership between Visa and Taulia seeks to capitalise on this trend by offering businesses a secure payment experience within their existing ERP systems.
Furthermore, recent disruptions such as the COVID-19 pandemic have accelerated the adoption of digital payment solutions, as businesses and consumers prioritise safety and convenience. As a result, the demand for Embedded Finance solutions, which integrate financial services into existing business processes, has surged. The partnership between Visa and Taulia represents a strategic response to this demand, enabling businesses to optimise their payment workflows and improve their working capital management capabilities.
An EY market survey, with participants from 21 technology providers across the Americas, EMEIA, and APAC, revealed that 94% of global financial technology leaders consider real-time responsiveness to customer needs a significant feature of financial products. This finding underscores a growing interest among both financial and non-financial institutions to collaborate and identify opportunities for mutual growth.
Further studies indicate that businesses adopting Embedded Finance solutions experience notable benefits, with 88% reporting increased customer engagement and 85% claiming it aids in capturing market share. By integrating Visa's payment solutions directly into Taulia's platform, businesses can tap into new avenues for growth and innovation while reducing the risks associated with manual payment processing. This integration not only simplifies payment processes but also provides enhanced control and visibility over financial transactions. Leveraging Visa's global network and security features ensures fast, secure, and reliable payment transactions, fostering trust and confidence among both buyers and suppliers.
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