How ERP supports compliance in digital payments

Digital payments, such as virtual cards and mobile wallets are becoming more prevalent in business than ever. Businesses are starting to realize the need to shift away from outdated payment methods, to more modern, digital solutions. While these digital payment solutions are making work and life easier, they are not without their challenges. Corporations small and large will need to be poised to ensure compliance with usage, as well as security and privacy, as they continue towards modernizing their payment processes. Like most complex systems, business is turning to technology to help with the planning and compliance — the most common answer is Enterprise Resource Planning (ERP).

ERP is automated software most commonly used to collect, store, manage and interpret data within all business components and divisions. It provides a holistic perspective of all business activity in real time, which is critical in managing corporate payment solutions, data collection, and compliance. ERP systems can facilitate information flow between all of these business functions internally as well as externally, enabling organizations to track and manage vendors, partners and other external stakeholder with transparency and detail. While enhancing business operational efficiencies, these systems are also important for mitigating human error — errors that could be detrimental in meeting compliance in any industry.

As most of Corporate America has turned to the cloud for managing and storing resources, ERP systems software also has. Web-based ERP software provides real-time access to all facets of business including human resources, strategic partners, vendors/suppliers and even customers. These systems are used for both internal and external access, making it more effective for collaboration and compliance as needed.

Web-based ERP software provides real-time access and connectivity

ERP was once primarily used for e-commerce, but these systems now include more functions and roles than ever before — account management, client relationships, transparency, global economic resources and standardization and compliance. Legal and regulatory compliance can often times cross international boundaries, which is why a larger integrated system is key. ERP systems take into account a global economy and can deliver a more efficient flow of information across all borders.

The financial sector faces tough standards

The financial sector is largely affected by compliance and legal regulations, and they are being held to extremely rigorous standards. This industry has a lot to be accountable for, not the least of which is fraud and anti-money laundering (at home and abroad).

They also have standards to follow for electronic payment systems, data protection and transfer, as well as accurate records keeping for all of it. With the right controls in place and a robust ERP system, these institutions may feel more confident in meeting PCI compliance requirements by centralizing payment data and providing secure, auditable records. A healthy and secure financial ecosystem can only be run by an equally healthy ERP network. Integrated networks can streamline the process and simplify the transactions while the system can see those transactions, simultaneously maintaining the integrity of the data through vigilant data collection, tokenization, data classification, data encryption and authentication of users.

But as you can imagine, it’s easier said than done. Regulatory mandates for the financial sector come quickly and often, which makes it even more challenging to stay compliant.

It’s important to stay vigilant and to make sure everyone from the corporate executives and board of directors to the strategic partners and the internal teams, understand the importance of compliance, and what it all means to them.

Keep teams informed on regulatory changes

Technology is only part of the equation. A strong compliance culture depends on people understanding their role in meeting standards. Here are effective ways financial leaders can stay on top of compliance.

• Educate staff. Whether through regular meetings or weekly email blasts, keep everyone who needs to know about regulatory changes up to date. Provide regulatory compliance training, and make sure employees also have access to resources such as industry publications and webinars on relevant topics.
• Invest in expertise. This includes hiring compliance officers and internal auditors. Engaging specialized consultants with deep expertise in regulatory matters can also help organizations to manage compliance initiatives more effectively.
• Learn from others. Keep an eye on competitors: Adopt their best practices and avoid repeating their blunders.

Compliance is risk management

It is clear that managing resources, financials and data is no more important than managing risk. Noncompliance could very well be the biggest risk a company could face next to fraud or data breach. Whether your company is an enterprise corporation or an independent business, communication is key. How a company collects, manages and interprets data might be the corner stone of their success. A robust ERP system can facilitate more than corporate payment solutions, inventory and production capacity. Your ERP could keep you integrated, efficient, informed and compliant.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.