American Express and Goldman Sachs announced a collaboration on Wednesday offer AmEx virtual cards through Goldman’s corporate banking platform, Goldman Sachs Transaction Banking (TxB).
The new digital offering aims to facilitate and streamline business-to-business (B2B) payments for large business customers, by offering multiple payment options on a single platform.
âA major issue for our large commercial card customers is managing multiple platforms and a myriad of long, expensive and complex processes to complete, track and reconcile thousands of payment transactions every day,â said the Executive Vice President of Global Business Services at American Express Dean Henry.
As a growing number of young people fintechs Siphoning off customers from traditional financial institutions, innovation is becoming increasingly important to industry stalwarts like American Express and Goldman Sachs. American Express has relationships with nearly 60% of Fortune 500 companies, and this collaboration will allow Goldman to tap into this important group of Amex business cardholders.
The new Amex-Goldman integrated payment service offers a âone-flowâ process that consolidates payment activity with a set of B2B payment instructions. This will eliminate redundancies in the payment process and reduce the bank charges caused by initiating multiple files.
“We are delighted to partner with Goldman Sachs to modernize these outdated B2B payment processes,” Henry said in the statement. âTogether, we are setting a new standard in banking transactions for large businesses by providing access to faster, real-time payments – tracking that can increase efficiency and reduce costs.â
The TxB corporate banking platform already offers automated clearinghouse payments, wire transfer services, and foreign currency payments.
The Goldman TxB payment system is part of the recently announced digital solution and routes payments through specific channels in accordance with with buyer’s preferences for speed and cost.
âWe have developed the Goldman Sachs TxB platform to provide our clients with a modern cash management platform that is digital, agile, easy to use and secure, bringing a quality consumer user experience to the world of payments. B2B â, said Hari Mooreux, global head of TxB at Goldman Sachs. The bank will work with American Express “to extend our payment platform, enabling customers who are American Express Corporate Card members to make card payments and improve the efficiency of their payment experiences with suppliers,” did he declare.
Several major US banks offer digital treasury solutions similar to Goldman Sachs, including Bank of America, Citigroup, and JPMorgan Chase. American Bankers Reports that Moorthy valued the US business banking market at $ 80 billion and the global market at $ 150 billion to $ 160 billion.
According to the press release, the new payment service is currently available to select customers and is expected to be released for general availability in early 2022.