SAP, a global leader in enterprise software solutions, has launched a Test Drive program to make cross-border payments easier and more efficient.
This program aims to address common challenges faced by small and medium-sized enterprises (SMEs) when conducting international transactions, such as high costs, slow processing times, and a lack of transparency.
By using blockchain technology and stablecoins like USDC and EUROC, businesses can now settle cross-border transactions in a more efficient, cost-effective, and transparent manner.
Stablecoins are tokenized versions of fiat currencies and are pegged 1:1 to their underlying currency. These coins are backed by cash holdings or government securities to ensure stability.
To facilitate seamless payment processing, each business partner must have a self-custodied wallet, similar to a bank account. The buyer initiates a transaction by using wallet software to enter the seller’s wallet details and signing the transaction with a private key.
The blockchain then validates and executes the transaction, allowing for the quick transfer of funds represented by USDC or EUROC coins to the seller, usually within minutes.
Through the Test Drive program, SAP provides participants with an immersive experience to explore this innovative approach to cross-border payments. Test users receive simulated USDC as play money, allowing them to simulate payment for a sample invoice.
It is important to note that the Test Drive operates on a dedicated test network and does not involve real coins or actual payments.
SAP plans to seamlessly integrate this digital currency solution into its underlying ERP systems, including SAP Business One, Business ByDesign, and S/4HANA Cloud.
This integration would enable fully automated processes with autonomous reconciliation, a significant step forward in improving cross-border payment efficiency.
With the Test Drive initiative, SAP aims to showcase the future of cross-border payments, showcasing the speed, affordability, and reliability that digital currency brings to international transactions.
Compiled by Coinbold