Virtual payments the way forward for corporates


A lack of trust in people, the payment system or the overall payment process has hampered corporate adoption of virtual and tokenised payment solutions, opined Kurt Knackstedt, CEO, Troovo who spoke at an ITB Asia 2020 Virtual conference session.

While companies have primarily used corporate cards for supplier purchases for nearly three decades, Knackstedt believes that the time is up for these static card products. The current lull in business will enable companies to take the leap into virtual payments.

Once centralised, virtual payments will open up a new world of efficiency

“People are no longer in the same office, so the ability to run physical-proximity type processes – a wet signature on a document, or a rubber stamp that many Asian countries still require for purchases – will not work now. Virtual payments can help out,” Knackstedt pointed out.

He encouraged companies to make use of robotic software, managed by a team of people, to centralise these payments, which will in turn take away work that is repetitive and prone to human error.

Doing so would also help to build trust in both the process and employees.

“It has to be as people-free as possible. No one likes to fill expense reports, do paperwork, or wait two days to get three people to authorise the payment (for an airline ticket for a business trip),” he said.

Instead, an employee would get a virtual card generated, pushed to their phone, tap it at point-of-sale and know that the airline has received the card digitally and issued the ticket confirmation.

“The future of payment is any payment, anywhere in the world, anytime, run through any system, any scheme, any device, but all centrally-managed and all driven from a technology perspective,” Knackstedt concluded.

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