The Future of B2B Payments: A New Frontier

B2B Payments: The Future of Business Money Matters

Money coming in and going out is always important, but in uncertain times, cash flow becomes even more crucial. The current macro environment is making a strong case for better B2B payments, as there is a lot of room for improvement in commercial transactions. Legacy B2B payment processes heavily rely on traditional billing methods and manual processes, such as invoice reconciliations and the old-fashioned signing and mailing of paper checks. Although eliminating paper-based methods isn’t a walk in the park, starting with B2B payments can provide a glimpse of the benefits of broader enterprise modernization and the immediate advantages of money movement visibility and organizational certainty around cash flow.

Having the right tools can lead to a sharper focus on better financial results and unlock greater downstream efficiencies. By adopting digital processes, operational costs can be reduced, and overall transaction transparency can be enhanced. It’s high time to transform B2B payments from a cost center into a competitive advantage.

The Hidden Costs of Checks: A Slow and Painful Demise

Transforming Business Payments into a Secret Weapon

According to PYMNTS Intelligence, modernizing financial infrastructure through automation and digital transformation initiatives is crucial for businesses to not only survive but also thrive in today’s competitive marketplace. Industry leaders echo the same sentiment. Ben Weiner, senior vice president and global head of B2B payments at Nuvei, highlighted the rarity of true white space in the payments market, making B2B payments an attractive space for innovation. Tom Randklev, global head of product at CellPoint Digital, emphasized the ongoing digitization of the space, which optimizes operational and cost efficiencies in money movement.

Shifting to electronic B2B payments and automating functions like accounts payable (AP) and accounts receivable (AR) can help businesses address critical areas such as cash flow, liquidity, and working capital shortfalls, which are increasingly important in today’s environment. Seth Goodman, chief revenue officer at Boost Payment Solutions, emphasized that the real value lies in automation and reconciliation, as it opens the door to a new context of value-add benefits for B2B players.

Drew Edwards, CEO of Ingo Money, expressed the interest in turning payments into a money maker rather than a cost center. Treasurers and finance professionals are considering the costs of issuing and accepting paper checks versus faster and online payment options like virtual credit cards and push-to-card transactions. The interest in streamlining B2B payments has grown from the seamless and digital experiences decision makers encounter in their daily lives.

Aligning B2B payment innovations with those seen in consumer settings can create experiences that not only delight end customers but also maximize cash flows for organizations. Eric Foust, vice president of banking partnerships North America at Trustly, emphasized the value of convenience, making customers more loyal. He noted that businesses must focus on what’s next to stay ahead in the evolving and maturing B2B payments market. The growth areas are particularly beneficial for smaller firms, freeing up labor resources for strategic planning.