Modern Treasury, a software platform that helps companies modernize money movement, and Goldman Sachs Transaction Banking (TxB) today announced a partnership to accelerate the shift to embedded payments, helping joint customers seamlessly embed and scale domestic and international payments into their products to drive growth.
Modern Treasury’s Payment Operations software platform will provide mutual clients with an integrated money movement solution, with payments powered by TxB.
“Embedding payments into software products is increasingly the trajectory of commerce, and by partnering with Modern Treasury, we are creating new opportunities for clients to seamlessly leverage our payments capabilities within their own platforms,” said Eduardo Vergara, Global Head of Product and Sales at Goldman Sachs Transaction Banking.
Embedded payments is one of the fastest growing sectors across the payments industry as entire industries and workflows digitize. Global Payments notes that 60%-70% of new clients come from software channels.1 However, existing banking infrastructure was not designed with them in mind, and companies often have to build in-house solutions, which takes considerable development and resources.
To embed payments, companies need expertise in both banking capabilities and software. However, navigating across them introduces complexities around client onboarding, compliance, counterparty management, programmatic payment initiation, product ledgering, third-party payment reconciliation, accounting integrations, and more, becoming a barrier to entry for many mid-market companies seeking to digitize payments.
“Modern money movement is software driven. Goldman Sachs understands software developers and has built award-winning APIs2 for this audience,” said Dimitri Dadiomov, Modern Treasury co-founder and CEO. “Modern Treasury fills the payment operations gaps to provide our joint clients with a best-in-class software solution for money movement, so they don’t have to build it themselves. We look forward to helping more customers get products and services to market faster, driving growth.”
The companies have jointly served clients since late last year. Going forward, product teams from both companies have committed to a mutual product roadmap to address new client needs, tighten the integration, and offer mutual clients a unified product experience.
“We’re delighted to work with Goldman Sachs and Modern Treasury to better serve our investors and business partners,” says Nigel Glenday, Chief Financial Officer at Masterworks, the leading art investment platform. “With the help of both companies, our payment operations now support timely reconciliation of investor payments, irrespective of payment methods, and an integrated workflow to identify and resolve payment exceptions as they arise, all of which contributed to receiving our recognition as a recipient of this year’s noted Adam Smith Award.”
Modern Treasury and Goldman Sachs have collaborated on a solution to expedite clients’ time to onboard3. In addition, clients can open virtual accounts, make domestic and cross-border payments, view real-time payment statuses, manage incoming payment receipts, and access many more services needed to support today’s high-growth companies.