The growing adoption of virtual accounts in Europe reflects a fundamental transformation in the current model of global cash management. While the traditional cash management model involves complex cross-border multi-currency pooling structures and sweeping techniques to physically consolidate cash, the new model uses virtual account structures to segregate balances virtually and enable real-time global cash management. Virtual accounts hold the promise of optimizing the cash conversion cycle. Moreover, VAM helps simplify the multi-currency payment on behalf of (POBO) and collection on behalf of (COBO) structure as well. Such a structure is lucrative for corporates, such as commodities producers, whose sales are exclusively in one currency while sourcing and payables are often in local currency requirements.

Digital-world consumers expect banks to securely step up their technology game


Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.

Collaborative Payments Ecosystem Boosts Customer Centricity


Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.

New payments ecosystem key enablers


The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2


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