News - SAP tests stablecoins for international payments
Blockchain is no stranger to technology for SAP. But the German technology group is taking it a step further - and is going to test stablecoin payments.
Normally Germany’s most valuable company is known for its complex software solutions used around the world. Now SAP is drawing attention to itself with a decisive move toward blockchain. In a blog post presents the Walldorf-based technology group in Baden-Württemberg with a new solution for using Circle’s USDC and EUROC stablecoins for payments.
"Today, cross-border payments are a hassle for many small and medium-sized companies with international business partners," he said. explains Sissi Ruthe, Product Expert at SAP. They are expensive, slow and opaque. Digital currencies can solve these problems, says Ruthe, with the "blockchain as an underlying technology". Specifically, we are talking about the "SAP Digital Currency Hub," a new payment solution for corporate customers.
⚠️ JUST IN: SAP is leveraging Circle's $USDC stablecoin for testing cross-border payments, with the aim of addressing the difficulties businesses encounter when transferring funds internationally - SAP Blog— BecauseBitcoin.com (@BecauseBitcoin) June 23, 2023
In a video of the new application, an SAP employee explains how the new payment solution works with stablecoins. Payments with cryptocurrencies are normally not "recorded in the books" and it is "quite complex" to reconcile such transactions with regular accounting.
As part of the new payment system, a wallet will therefore be made available that allows invoices to be paid via stablecoins. These transactions must then also be accounting sustainable.
Back in 2020, the international company published a blog post which discussed potential integration opportunities with the Ethereum Mainnet. It also announced last year that it would integrate crypto-payment service providers - such as Bitpay - into SAP products.
Blockchain is thus no longer a foreign concept for the German technology group. SAP’s new payment system is now entering the test phase. Business partners can now "play money" to test whether the payment solution with stablecoins can be a real alternative.