AribaPay Gets Its First Transactions

One of the brand new products announced at the recent Ariba LIVE 2014 conference is AribaPay. Unveiled last year by Ariba, an SAP Company, and Discover Financial Services, a provider of direct banking and payment services, AribaPay is a cloud-based business-to-business (B2B) payments solution designed to provide better visibility into business payments and produce rich remittance information to improve the reconciliation processes. The offering completes the procure-to-pay (P2P) cycle embedded in the Ariba Network by integrating it into Discover’s global payments infrastructure to effect payments at maturity.
It took some time to integrate the Ariba and Discover products, but now the offering is market ready and has its very first customer. After participating in an early access program and completing the first payment using the service, Arlington Computer Products (ACP) says AribaPay delivers on its promise.
With AribaPay, the “track and trace” element gives the IT solutions supplier a view on where any payment stands at any point in time. With the elimination of paper documents and the real-time remittance information that accompanies its electronic payments, the supplier can reconcile things faster and more effectively manage its cash. With AribaPay on the Ariba Network, ordering, billing, and settlement processes between buyers and sellers are fully integrated.
In combining the pre-settlement business collaboration of the Ariba Network with Discover’s capacity to securely settle transactions on a global scale, AribaPay mitigates the pesky process of making and receiving B2B payments (which has been a manual exercise thus far). AribaPay should create value on both sides of the transaction.
Buyers who create purchase orders and receive invoices through the Ariba Network will be able to close the P2P loop by sending payments to their suppliers using Ariba Pay. They will see less paper, less risk, and less effort in managing bank account information and related data. They should be able to uncover and resolve disputes faster, monitor on-going payments better, and lower their processing costs and fraud risk.
On the other hand, sellers should be able to receive rich remittance information and gain a clear and reliable view into future payments (processing a paper check can cost $20, yet sellers have been using them to gain additional remittance info on customers). They’ll be able to track and trace payments, uncover payment problems earlier, and ultimately reconcile faster while lowering their payment processing costs. Needless to say, they will do it all in a completely automated environment.
AribaPay will be made generally available in the United States during the second quarter of 2014. The pricing model includes some software license and capped transaction fees for buyers and sellers.
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