Payments Technology and Evolution of P2P and O2C
Analyst Perspective
At its heart, money is an intellectual construct, as demonstrated through its continual shape-shifting over the ages. Since most money today exists in digital form, technology has an outsized impact on advancing innovations, especially in the most mundane corners of finance. Payments—the transmission and receipt of money in commercial transactions—have been an especially fertile area for innovations that speed up processes and drive down the costs of doing business. ISG Research asserts that by 2029, one-half of all buying will involve payments made on high-efficiency platforms, reducing frictions and overhead to speed purchases and cut costs. The payments landscape is undergoing rapid transformation, driven by technological innovation, evolving consumer expectations and shifting regulatory dynamics. Differences in payment practices and norms between countries continue to exist because of cultural, legal and regulatory legacies, but these are narrowing. The rapidly evolving payments landscape is having an impact on how enterprises manage core processes such as procure-to-pay (P2P) and order-to-cash (O2C), as well as how software providers incorporate technology in their applications that manage these functions.