| | NOVEMBER 20219CIOReviewbetween disparate email applications. A similar path to B2B mass connectivity can be to leverage the internet DNS capabilities along with federated registries to avoid the need for a centralized directory, and to establish prescriptive exchange standards to facilitate similar interoperability between business payment systems.This approach creates a virtual network for connectivity between business systems. These registries leverage the internet DNS to route messages in the same way email systems do. There is no one point of accumulation or storage of sensitive data, but rather a standard communication protocol that enables an inquiry to find endpoints to deliver a business message, such as an electronic invoice (e-Invoice). The service providers perform the exchange service role, similar to email exchanges, providing integration services to correctly format the data for ingestion by the target business' accounting system.This creates a framework thatreduces the number of external connections businesses need to manage,and the corresponding security risks.In addition, prescriptive message standards reduce the data mapping burdens typically required to facilitate information exchanges. Furthermore, the resulting framework of federated registries and virtual networks creates a necessary network effect dynamic for mass connectivity to deliver electronic documents and messages across disparate systems. This is not a hypothetical concept. Today, the Business Payments Coalition (BPC) is working on prescriptive message standards to establish a U.S. e-Invoice exchange framework. The exchange framework leverages federated registries for businesses to dynamically discover where to send an e-Invoice. Just like an email server, a business leverages an access point to the virtual network to perform the exchange service. The U.S. e-Invoice exchange framework is not a new idea, but rather seeks to follow modelsexisting in Europe and other countries. One primary objective for the BPC work group has been to leverage what is working in other countries and eventually achieve international interoperability. Businesses today sell beyond their own borders, and they need systems that have global reach and interoperability. A consistent method is needed for sending invoices within, and outside of, the U.S. Why have one method for sending invoices domestically and another method for international customers? The work group has been working closely with several international entities on the design of the federated registry protocol, and have incorporated the same message exchange tools and standards used by procurement and e-invoicing systems globally, such as OASIS UBL.Currently, as many as ten service providers are conducting a validation exercise to test federated registry concepts for discovery and message delivery across multiple virtual networks. In addition, the BPC will soon be initiating a work group to assess an appropriate governance model and body for the U.S. e-Invoice Exchange Framework. We encourage interested parties to go to the Business Payments Coalition website for more information.The technology is available to facilitatethe exchange of messages supporting electronic payments between businesses domestically and globally. Other countries have already implemented e-Invoice exchange frameworks, proving the viability and value. The Business Payments Coalition is nearing completion on defining the standards and operational model for a U.S. e-invoice exchange framework. We are at a crossroad and the light is green. Will U.S. industry stakeholders capitalize on the green light and drive forwardto solve the B2B payment systems mass connectivity barriers and achieve historically elusive electronic B2B payment processing efficiencies? Businesses today sell beyond their own borders, and they need systems that have global reach and interoperability
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