Goldman Sachs has entered into a new partnership to enable companies carry out business transactions through SAP’s Ariba Network.

The collaboration will make Goldman Sachs’ cross-border Global Payments capabilities available in select SAP Ariba solutions.

Subsequently, buyers can pay foreign suppliers in local currencies at a reduced cost. The integration is also expected to improve operational efficiency with swift reconciliation of payments.

Additionally, it will support real-time payment tracking, reducing risks and minimising related inquiries.

Goldman Sachs Transaction Banking global head Hari Moorthy said: “We put clients at the centre of this product to create a frictionless payment experience and provide competitive and transparent pricing.

“We are proud to partner with SAP to introduce this innovative yet simplified approach to making payments across the globe on Ariba Network.”

The partnership will utilise Goldman Sachs’ machine learning techniques to optimise payment routing.

With more than 4.6 million customers connected to it, Ariba Network supports more than $3.2trn in commercial transactions every year.

SAP Procurement Solutions Network and Ecosystem executive vice-president Sean Thompson said: “We continue to expand our portfolio of ecosystem partners to add more value for customers.

“Partnering with Goldman Sachs Transaction Banking allows us to deliver more innovative financial solutions, starting with these cross-border payment capabilities, which is critically important for so many of our customers on Ariba Network doing business in the global economy today.”