Procurement-to-Payment (P2P), within crypto operational frameworks, refers to the integrated process encompassing all stages from the initial request for goods or services to the final settlement of payment using digital assets or fiat through crypto-native rails. Its purpose is to streamline institutional expenditure workflows, enhance transparency, and reduce manual intervention across the supply chain.
Mechanism
The P2P system architecture integrates modules for supplier onboarding, request for quotation (RFQ) generation, contract negotiation, order placement, and invoice processing. Smart contracts can automate key stages, such as releasing payments upon verification of service delivery via oracles. Payment execution often utilizes stablecoins or direct cryptocurrency transfers, leveraging blockchain for immutable transaction records and faster settlement.
Methodology
The strategic methodology for P2P in crypto focuses on optimizing cost efficiency, improving auditability, and mitigating fraud risks through cryptographic security. This involves implementing robust digital identity verification for suppliers and establishing clear governance rules for smart contract execution. By digitizing and automating the entire procurement and payment lifecycle with blockchain technology, institutions can achieve greater operational control and financial predictability in their crypto-related business operations.
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