The solution will use SAP’s acquired B2B marketplace, Ariba Network. The latter was acquired by SAP in 2012, reportedly for for $4.3 billion.
SAP first introduced AribaPay in May 2013, in partnership with Discover Financial Services, a direct banking and payment services company.
Frank Bisignano, Chairman and CEO, First Data stated, “In combining First Data’s trusted global payments infrastructure with the unique insights and information-sharing capability of the Ariba Network, our companies can turn antiquated payment methods on their head.”
AribaPay eliminates paper transactions, providing better visibility into cash flow and producing rich remittance information that improves reconciliation processes for buyers and sellers. This structure helps and suppliers to complete the procure-to-pay process faster, easier and with greater visibility.
Using the service, buyers and sellers can:
- Exchange purchase orders, invoices and payments — all in a fast, secure, electronic environment
- Lower processing costs
- Receive richer remittance advice
- Reduce fraud risk
- Track and trace transactions
- Speed reconciliation and dispute resolution
SAP hopes that the solution will not only help companies digitize payments but also fuel a simpler, efficient and effective reconciliation process that creates real business value across the enterprise.
“Trillions of dollars in transactions around the world run through First Data and our Ariba Network,” said Bill McDermott, CEO, SAP. “I’m very proud to stand with Frank Bisignano and his team at First Data to fundamentally transform the way commerce is conducted between companies with AribaPay.”
A company release claims that more than US$40 billion in B2B payments have been made using AribaPay to date.
