Commercial payments refer to the various types of payments made by businesses to other businesses or individuals. This can include everything from invoices and salaries to rent and utility bills. While most commercial payments are made using traditional methods such as checks or bank transfers, there is an increasing trend towards digital payments. This is due to the many advantages that digital payments offer, such as faster processing times, lower fees, and increased security. As a result, more and more businesses are making the switch to digital commercial payments.
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Data for today’s episode is provided by Mercator Advisory Group’s report – Outlook 2021: Commercial and Enterprise Payments,
2020-2021 Trends in Commercial Payments:
- Modernizing financial operations has moved to the forefront of many businesses’ priority list.
- Banking industry resourcefulness has been tested and will continue to be a highly valued characteristic.
- Platform models and cloud migration will be much more noticeable in 2021.
- Digitalization of financial operations has accelerated in 2020 and will continue as corporate inertia around such investments has been greatly challenged.
- Platform banking and services seem poised to gain traction given the need to gain efficiencies, the coming migration to ISO 20022, and the growing adoption of AI.
- Collaboration between fintechs and FIs will continue, with perhaps some consolidation as fintechs mature and banks deal with market risk.
In a year unlike any other, the financial services industry has done a very good job of keeping their organizations focused on clients, many of whom are under existential threat from ongoing pandemic-related policy decisions and the aftershocks of business shutdowns. But what can we expect as we move into 2021? What has changed and will these things be permanent or fade away as COVID also fades?
In this research report, Outlook 2021: Commercial and Enterprise Payments, Mercator Advisory Group answers these and other questions. In commercial banking and payments, broad and rapid change from any given year to the next is not typically to be expected. There may be certain aspects of the business where developments occur at a different pace than others, such as adjustments for some regulatory requirement, but in terms of overall themes the pace of change tends to occur over several years. However, acceleration is certainly occurring and technology gains are causing further change. This Mercator Advisory Group research report is our annual look at what we expect during the next year.
Mercator Advisory Group’s latest research report provides a direct view into the latest trends in corporate banking and payments as a pandemic is underway and a brave new world looms ahead. The report breaks out the key success factors into four themes with several sub-categories in order to more easily digest the scope of change underway and expected going forward.
“Looking across the industry during this interesting year, we of course see the acceleration of digital systems and process adoption, something that has been underway for several years but is at a whole new level now given the need to adapt to working realities,” commented Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service, author of the report, “and this is likely to be an ongoing trend given the availability of new technology and corporate needs to better manage cash.”