When Single Euro Payments Area (SEPA) credit transfers were introduced, Google was quick to see their value and used them to convert 98% of its 15,000 monthly euro wires to ACH-like credit transfers, slashing its banking fees for the transfers by 98% and saving 50,000 euros ($69,237) a month.
"It's our goal to maximize standardization and efficiency in our cash management," says Ronni Horrillo, assistant treasurer, "and we could see that SEPA credit transfers would help us do this." With more than half its non-U.S. revenue coming from Europe, Google had the scale to capitalize in a big way.
The before-and-after contrast is striking. "Our payment processes had been people-intensive, inefficient and costly," Horrillo notes. "The wires required manual input into our electronic banking system and verification of each transaction." Now automated payments are originated in Google's Oracle ERP system, sent to Citigroup and distributed as credit transfers to European suppliers.
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