As an example, EBPP is already being used to streamline the settlement flows between airlines and cargo agents. Figure 2 below shows how information flows through the system. Using the service, agents can pay according to their usual trading terms, while airlines have a clear view of their incoming funds. Into The E-commerce Era We are at the start of a period of tremendous change and cool heads will be required to ensure that services, alliances and infrastructures meet the real needs of customers in the future. There are certainly some challenges that must be overcome.
Regulatory issues are ever present.
Requirements for central bank reporting of crossborder transactions are not yet harmonised, and crossborder disputes can be complex and costly to resolve. Despite these caveats, e-commerce also offers opportunities to dramatically improve the use of working capital. Treasurers and their bankers have come a long way in recent years in establishing efficient, secure and lean financial structures - euro liquidity management solutions and shared service centres being good examples. There is a danger that, without the careful oversight of the finance function, a hastily implemented e-commerce strategy might destroy some of this carefully built value. Creative banking relationships, good information reporting and central treasury control are more important than ever in this environment of change, uncertainty and opportunity.