Goldman Sachs becomes part of SAP’s Ariba Network
Goldman Sachs has teamed up with SAP, the European software company, implementing its cross-border payments services in select SAP Ariba solutions.
The partnership is intended to make it “simpler and less costly for buyers to pay foreign suppliers in local currencies”, SAP said in a statement.
More than $3.2 trillion is transacted in commerce by global businesses and suppliers through the Ariba Network annually.
Around 4.6 million companies make up the Ariba Network, covering 190 countries which SAP says makes it “the largest business network in the world”.
“We put clients at the centre of this product to create a frictionless payment experience and provide competitive and transparent pricing,” says Goldman’s global head of transaction banking Hari Moorthy.
“We are proud to partner with SAP to introduce this innovative yet simplified approach to making payments across the globe on Ariba Network.”
Goldman’s customers will be able to pay foreign in local currencies “at lower cost with competitive foreign exchange rates” according to SAP.
The bank’s businesses will also be able to reconcile payments more easily, track payments in real-time, and reduce their risks with better visibility on foreign payments and currency exposures.
For SAP, this partnership benefits its own client network too.
“Partnering with Goldman[‘s] transaction banking [unit] allows us to deliver more innovative financial solutions, starting with these cross-border payment capabilities, which is critically important for so many of our customers on Ariba Network doing business in the global economy today,” says EVP of network and ecosystem for SAP’s procurement solutions unit Sean Thompson.