Goldman Sachs and Visa target global treasury modernisation
by Ben Poole
Visa has announced a global strategic partnership with Goldman Sachs Transaction Banking to help businesses - large to small - move money effortlessly around the world.
Through its implementation of Visa B2B Connect and Visa Direct Payouts solutions, Goldman Sachs aims to help its commercial and corporate banking clients simplify complexities and costs associated with existing systems and inefficient processes. These solutions should enhance Goldman’s cross-border business-to-business (B2B) and business-to-consumer (B2C) payments programme for high and low value payments.
Goldman Sachs’s corporate clients can move funds quickly and securely, have near real-time visibility into their payment status, obtain necessary reconciliation and compliance data, ultimately helping improve organisations’ cash flow.
"There is an immediate need for modernisation of global money movement to help businesses around the world simplify and enhance how they pay and get paid across borders," said Alan Koenigsberg, global head of new payment flows at Visa Business Solutions. "Visa’s partnership with Goldman Sachs Transaction Banking is an important milestone in our efforts to break down traditional processes and silos and help spur innovation in this critical industry segment for the decades to come."
How the partnership will work
Goldman Sachs Transaction Banking clients can begin using Visa’s solutions right away through their existing connections, whether that be API, file or online web platform.
For high-value cross-border B2B payments, Goldman Sachs will leverage Visa B2B Connect, a multilateral B2B cross-border payments network, available in 97 markets globally, to help optimise payments for its corporate client base. Built from the ground up, Visa B2B Connect is designed to shorten time spent on cross-border corporate payments by facilitating transactions from the bank of origin directly to the beneficiary bank, helping significantly streamline settlement.
The platform helps increase visibility and predictability into the transaction flow, giving Goldman Sachs clients an opportunity to track the status of payments from the originator bank to the destination bank in near real time, while improving transaction accuracy and simplifying the reconciliation process.
With Visa Direct Payouts capabilities, Goldman Sachs will bring push-to-account functionality for lower value, high volume cross-border business-to-small-business (B2SB) and business-to-consumer (B2C) payouts, eliminating complexities often associated with businesses having to manage multiple networks and intermediaries worldwide. Through a single connection to billions of endpoints in over 90 markets, Visa Direct Payouts expands the payment options Goldman Sachs can offer to its corporate clients.
"We believe paying someone halfway around the world should be just as easy as paying someone around the corner," said Eduardo Vergara, global head of Transaction Banking Product and Sales at Goldman Sachs. "We are proud to partner with Visa to introduce fast and easy ways our clients can make payments across the globe."
In a statement announcing the news, Goldman Sachs said that its Transaction Banking clients will benefit from this partnership in the following ways:
- One simple workflow for all payment types.
- Start using Visa services right away, with no changes to existing setup.
- Additional payout options for high and low value payments.
- Fee optimisation.
- Comprehensive information reporting for easy reconciliation.
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