Client Story
Bringing Greater Visibility to Cross-Border Payments
Empowering LVMH
Global luxury goods maker LVMH collaborated with FIS, SWIFT and six of its partner banks as part of the SWIFT gpi for Corporates pilot project, which aims to remove delays, uncertainty and lack of visibility from the cross-border payments made by multinational corporations. It was the logical extension of the payment centralization and automation project LVMH embarked on in 2010 with the FIS® Payment Hub - Quantum Edition (formerly Trax), which integrates seamlessly with SWIFT.
At a Glance
Objective
Integrating Payment Hub - Quantum Edition with SWIFT gpi to allow for same-day settlement and bring transparency to 1.5 million cross-border payments.FIS Solutions
Results
Today, LVMH relies on Payment Hub - Quantum Edition to automatically assign a unique transaction reference (UETR) to each payment for easy tracking, reconciliation and reporting. The bank’s system automatically sends back MT199 and XML ISO PSR messages with detailed transaction status, including fees and FX rates. The Payment Hub - Quantum Edition dashboard allows LVMH’s users to track payments easily without the need to raise queries with the bank, which previously took days or longer to resolve.
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Impact
By bring greater transparency to the status and settlement of its cross-border payments, LVMH benefits from greater predictability and accountability within its supply chain. Payment Hub - Quantum Edition and the SWIFT gpi integration are helping the company better manage its commercial relationships, reduce friction and control costs as it brings its luxury goods to market.
of group’s 1.5 million payments are cross-border
SWIFT gpi is a potentially transformative industry development, but it is not taking place in isolation, as application program interfaces (APIs) offer the potential to move toward managing cash, liquidity and risk in real time. FIS and LVMH continue their work in bringing clarity and confidence to cross-border payments and are exploring the potential for future API integrations.