Transformative Trends in Commercial Payment Reconciliation

Delivery

This report comes in PPT.

Key summary

Two key clusters of vendors in the payment reconciliation market

The embedded payment reconciliation market consists of two key teams, namely payment and banking specialists, and business software vendors. Payment and banking specialists leverage their proximity to corporates, while software vendors are increasingly pivotal for SMEs. The vendors driving digital transformation effectively will influence clients’ choices of banking and reconciliation.

Current solutions: Virtual products, business software integration and automation recommendation

The current market is dominated by virtual products, automation recommendation and business software integration. Meanwhile, virtual cards and virtual accounts enable further granularity for each employee or each supplier/client, without application of multiple main cards or main accounts for the company. Automation recommendation reduces human intervention, but does not eliminate entirely, with current level of accuracy.

Emerging trends: Blockchain and AI powered processing and risk management

Emerging trends in blockchain and generative AI are transforming reconciliation by enhancing transparency, speed, security and convenience. Meanwhile, AI garners significant attention and blockchain innovations, including private solutions from JP Morgan and public CBDC initiatives, are also reshaping the reconciliation landscape.

Digitalisation reduces difficulty while fragmentation increases challenge in reconciliation

The costs of handling paper payments and reconciliation have been driving a global push towards payment digitalisation. Meanwhile, digital payment fragmentation grows with payment types and brands especially digital wallets. Such digital fragmentation also introduces difficulties but in turn opportunities, especially for aggregators.