Integrating Decentralized Finance (DeFi) Protocols into SAP Systems for Automated Payment Processing

DeFi or Decentralized Finance aims to automate and decentralize any form of traditional finance workflow done by a centralized institution. In this regard, cross border payments and transactions in SAP ERPs can be automated and secured using DeFi protocols. Thus, this study aims to design a payment interface that would fit into SAP ERP frameworks capable of meeting the low-cost, automated, and secure requirements for cross-border payment transactions. Traditionally, payments were made via SWIFT and SEPA. The proposed model intends to replace these with DeFi transactions handled through smart contracts, oracles, and payment middleware. Focusing on results, transaction latency, smart contract auditability, saved costs, and compliance assessments were measured for Ethereum, BNB Smart Chain, and Polygon. Real SAP Business Environment pilots showed over 60% decrease in processing cost while settlement speed increased by up to 90%. The model is designed to handle enterprise risk and compliance by incorporating robust KYC/AML governance, validation, and logging controls. A roadmap for the incorporation of DeFi into enterprise ERPs at a large scale for finance automation will serve as the study’s conclusion.