Digitalization of Businesses

The digital economy is putting pressure on finance departments around the globe.
This is the new normal of volatility - it is not just in the traditional areas of currency exchange risk and commodity prices, but also includes macroeconomic volatility and rapidly changing consumer preferences. In addition, tax policy volatility and complex regulatory requirements are challenging finance departments to provide ever deeper and ever more real-time information.
The second challenge is the proliferation of business model change, across all industries. Industry lines are blurring and the number of mergers and acquisitions continues to grow, becoming a standard model for achieving growth and innovation. Disruptive competitors are entering the market at an increasing pace. The emergence of digitally-enabled business models is forcing finance to become ever more agile and proactive.
As a result, finance is being asked to drive strategy in a whole new different way - providing real-time insight and proactive advice on investments, mergers and acquisitions, and on business model transformation.
In addition, finance is being asked to support the process of digital transformation across the enterprise. The sum of these changes has the potential to impact the entire financial value chain. Everything from how we bill, collect, report, and pay taxes, to how we plan for and control the business is going digital and real-time.
Enterprises have realized that finance transformation will help drive innovation and manage this volatility.
Tedious External Payment Setup

Real-time payments without external digital payments can be costly and tedious. The following constraints result from legacy system landscapes.
Payment service provider (PSP) integration:
- Customer-specific implementation and maintenance for each PSP
- Technical lock-in
Payment methods:
- Restricted to credit card payments
- Further digital payment methods only available via a custom implementation
Reconciliation
No automatic post processing in accounting, high manual effort and error-prone
External Digital Payments Features

The SAP digital payments add-on is a payment hub between PSP and SAP components, solutions, or applications that need to process incoming credit card or external payments.
The scope item enables the integration between SAP S/4HANA Cloud and the digital payments add-on. With this, you can use external payment methods in SAP S/4HANA for incoming payments.
The complete process is covered and automated, from payment advice processing via digital payments jobs, to automatic clearing and the final bank statement upload.
Various payment service providers are supported.
The activation of this scope item requires an additional license for the respective SAP Cloud Platform products Digital Payments and Customer payments.
You should consider these points when implementing the digital payments add-on and external digital payments:
- The customer needs to license the digital payments add-on (which is transaction-based).
- SAP S/4HANA Cloud, SAP S/4HANA On-Premise, and several other SAP solutions are integrated out-of-the-box.
- Integration with PSPs is available out-of-the-box. The customer must also have a contract with the PSP(s) of their choice.