Watch video interview
Launched in 2021, Zoetis Reference Laboratories China (Zoetis Reference Labs) is a technical service provider providing clinical laboratory tests for companion animals.
Zoetis Reference Labs have developed a one stop lab order management system where vet clinics can quickly and easily access the services provided by the labs. The company sought help from one of its banking providers, J.P. Morgan, to set-up a comprehensive and robust treasury management solution/system that can provide:
- A unified merchant acquiring system covering all forms of payment methods for both corporate and individual customers across various sales channels in China.
- An efficient account reconciliation system that can support and reconcile large volumes of low-value e-commerce transactions in real-time.
- A real-time visibility platform that allows Zoetis Reference Labs to track transactions instantly, so goods can be dispatched once payment is received.
The comprehensive solution equipped Zoetis Reference Labs with an innovative and scalable transaction infrastructure to grow its new business.
To kickstart Zoetis Reference Labs’ business they put in place a robust treasury infrastructure that combines powerful cash management solutions to support its e-commerce business. These include:
- Unified merchant acquiring platform: Zoetis Reference Labs will be able to list their marketplace on popular sales channels in China, as well as collect and process its online sales’ proceeds across all local payment methods, including UnionPay cards, WeChat Pay, Alipay and e-banking remittance, among others.
- Effective cash management scheme: the firm will leverage a Unitised Call Deposits (UCD) collections account which delivers improved interest provided funds have been in the account for at least seven days.
- Real-time connectivity via API: the use of application programming interfaces (API) connectivity will allow real-time exchange of data between Zoetis and J.P. Morgan. Account statements across payment methods are automatically reconciled into J.P. Morgan’s systems, enabling Zoetis to view account statement updates directly via the bank’s unified platform – J.P. Morgan Access.
Best practice and innovation
As a newly created subsidiary, Zoetis Reference Labs needed a treasury infrastructure put in place as soon as possible and one that would meet its urgent need for funding to commence operations in China. The comprehensive solution, combining a unified merchant acquiring platform, an API connectivity mechanism, and a high-yielding collections account, demonstrates how Zoetis was able to move quickly and utilise best practices in a highly complex market.
“From accessing capital quickly to get our business running, to establishing an efficient merchant acquiring platform to serve our customers, to the use of APIs to streamline payment processing and reconciliation at the backend, we are confident that this best in class treasury infrastructure will help power our new e-commerce business today and in the long-term,” concludes Zhang Lin, Senior Finance Director.