Project Name
Building a Secure MT-101 Payment Integration with Odoo ERP
The client is an enterprise organisation whose finance team was managing vendor and international payments manually through a corporate banking portal, a model that required manual data entry for every payment instruction, had no centralised approval workflow, and provided no real-time payment status visibility between initiation and settlement. As payment volumes grew, the manual process was generating errors, producing duplicate transactions, and making reconciliation increasingly difficult.
The organisation’s goal was to integrate their ERP directly with the bank’s B2B payment gateway, enabling payments to be initiated, signed, validated, and tracked entirely within the ERP without any manual interaction with the banking portal.
The client faced multiple operational and technical challenges that made payment processing inefficient, error-prone, and difficult to govern.
- Manual Payment Entry Causing Errors and Duplicates: Finance teams manually entered payment details into the corporate banking portal, leading to data entry errors, duplicate transactions, and unnecessary administrative effort.
- Lack of Centralised Payment Approvals: The payment process lacked an ERP-driven approval workflow, making it difficult to enforce authorisation controls, ensure compliance, and maintain a complete audit trail.
- No Real-Time Payment Status Visibility: Finance teams had no live visibility into payment progress. They relied on manual portal checks to determine whether payments were accepted, rejected, or settled, slowing reconciliation.
- Complex SWIFT MT-101 and Digital Signature Requirements: The bank required every payment to be formatted as a SWIFT MT-101 message, digitally signed with RSA SHA-256 using the client's PFX certificate, encoded correctly, and transmitted over mutually authenticated HTTPS.
- Strict Bank-Side Validation Rules: The bank validated account authorisation, duplicate payments, transaction limits, and payment-specific rules only after submission, causing avoidable rejections and processing delays.
- No Automated Settlement Notifications: Payment settlement updates were delivered through webhooks rather than the initial API response, requiring a dedicated integration layer to receive and process real-time status updates.
Ksolves, an AI-first Odoo development company, implemented a secure, end-to-end MT-101 payment integration within the ERP, enabling automated payment initiation, digital signing, validation, submission, and real-time status tracking, all without requiring finance teams to access the banking portal.
- Automated MT-101 Message Generation: The ERP automatically generates bank-compliant SWIFT MT-101 payment messages from payment records, eliminating manual data entry and ensuring consistent, error-free formatting.
- RSA Digital Signature & Certificate Authentication: Every payment request is digitally signed using the client's PFX certificate with RSA SHA-256 and transmitted over mutually authenticated HTTPS, ensuring secure and authenticated communication.
- Pre-Submission Business Validation: The ERP validates payment data, mandatory MT-101 fields, duplicate references, beneficiary details, and transaction rules before submission, preventing avoidable bank rejections.
- Real-Time Submission Response Handling: The integration captures the bank's immediate response, allowing finance teams to instantly identify accepted, duplicate, or rejected payment requests and take corrective action.
- Webhook-Based Payment Status Synchronisation: A secure webhook integration automatically updates payment status in the ERP as transactions progress, providing real-time settlement visibility without manual portal checks.
Technology Stack
| Category | Technology |
|---|---|
| Messaging Standard | SWIFT MT-101 |
| Security | RSA SHA-256 Digital Signature |
| Security | PKCS12 Certificate Handling |
| Integration | HTTPS Mutual Authentication |
| Integration | Webhook Notification Integration |
| Platform | ERP Payment Automation |
The implementation replaced manual, portal-based payment processing with a secure, automated ERP-driven workflow, improving accuracy, visibility, governance, and payment security.
- Manual Payment Processing Eliminated: All corporate payments are now initiated, signed, and submitted directly from the ERP, removing manual banking portal entry and reducing administrative effort.
- Fewer Payment Errors and Rejections: Pre-submission validation catches formatting errors, duplicate references, and business rule violations before transmission, significantly reducing avoidable payment failures.
- Centralised Approval and Audit Trail: A governed approval workflow and complete payment history provide full traceability from payment initiation through settlement.
- Real-Time Payment Status Visibility: Webhook-based notifications automatically update payment status in the ERP, eliminating manual portal checks and accelerating reconciliation.
- Enhanced Payment Security: RSA digital signatures, certificate-based authentication, and secure HTTPS communication ensure every payment request is authenticated, encrypted, and compliant with banking security standards.
By integrating the ERP directly with the bank’s MT-101 payment gateway, Ksolves transformed a manual, portal-driven payment process into a secure, automated workflow. Payments are now generated, digitally signed, validated, submitted, and tracked entirely within the ERP, giving finance teams real-time visibility, stronger governance, fewer processing errors, and a complete audit trail from payment initiation to settlement.
Is Your Finance Team Still Processing Corporate Payments Manually Through a Banking Portal?
