Airlines have been looking at various facets of #B2Bpayments. One of them is to focus on a cross-border infrastructure and interoperability for streamlined payments. It is about paying any entity, any time, any account, irrespective of the payment system used.
The goal of interoperability is to enable different systems to work together to facilitate the transfer of funds between businesses located in different countries.
Cross-border B2B payments involve multiple disconnected systems and stakeholders. An interoperable setup for payments helps entities receive their funds quickly. Plus, it can also help in making the most of real-time transaction tracking and automated B2B payment processing. It is also important to assess to what extent interoperability can result in cost reduction, including associated currency conversion costs
The challenge is to deal with a gamut of networks and payment methods. Each solution has its own, siloed ecosystem. Banks, FIs, merchants, technology providers/ enablers, and issuers need to collaborate and support cross-system compatibility and interoperability. The role of back-end networks is important as newer players have enabled interoperability between payment methods.
· How is interoperability shaping up?
· Can one expect consolidation in the B2B cross-border payments space?
· How is an API-driven architecture playing its part?
Keen on this topic? Ai Events is scheduled to conduct the Airline & Travel Payments Summit (ATPS) B2B in London (24-25 September):
By Ritesh Gupta, Ai Events
