"When a business writes checks in the future, the involved parties to the payment will be working with an image replacement document," says Financial Insights' Capachin. "But companies need to realize that the Check 21 legislation destroys the float. On the flip side, the gain for corporations, however, is quicker payment."

A Smoother Drive in the Future

Exciting opportunities will take place in this market over the years. Some predict that because of Check 21, for example, paper checks will be a thing of the past sooner than anticipated. Regardless, the financial supply chain can expect further efficiencies.
A first move is the payment market transitioning to a more networked model where buyers and sellers can swap invoices with a single connection and in a common standard.

"Consolidating the market and building successful standards is very important," says Ijams. This is especially so as the financial supply chain extends its reach to the mid-market."

Jeanne Capachin suggests that paper checks will disappear faster than previously predicted. "Two years after imlementation of Check 21 business won't receive paper checks É all execution and reconciliation processes will be done from images. And if they are writing checks and want a paper check back they will be paying a premium for it."

In addition, Capachin says banks will offer more B2B network services in partnership with companies like Xign and U.S. Bank's PowerTrack.

The way Robertson sees the market is that it boils down to "a much greater focus on moving to electronic interaction so that the entire supply chain can be electronic from beginning to end."

What to Expect

If you're a Fortune 500 company, expect the card and third-party payment providers to move toward building a stronger network that facilitates the one-to-many and/or many-to-many model. Solutions should also be robustly functional around specific needs of different market verticals.

"Effective connectivity and collaboration will be the glue that will connect ERP systems with financial systems as well as the trading partners working with an organization," says Capachin. "The third-party providers are extending services that banks would typically provide."

Robertson adds, "One thing that's important to look for is vendors that have experience in their industry, work with their trading partners and are familiar with the particular trading environment they operate in."

Regardless, companies investing in this technology and the services attached to it can expect more and more options and functionality in automated payments. Says Capachin: "The ones that look the strongest into the payment solution will be the ones looking the deepest into the supply chain."

For more enablers in the Payment space of the Global Enabled Supply and Demand Chain Map, check out "Version 6.0 ," of the Map on iSourceonline.com.