PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Fintechs Offer Crucial Support for Modern B2B Payments

Steve Murphy by Steve Murphy
June 21, 2022
in Analysts Coverage, B2B, Fintech
0
payment modernization
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Business-to-business (B2B) payments refer to the transfer of funds between two commercial entities. Typically, B2B payments are made in the form of invoices, and they can be processed online or through traditional methods such as checks or wire transfers. In recent years, fintech companies have begun to develop new ways to process B2B payments, which has led to a transformation of the financial operations of many businesses. These new fintech solutions often offer faster payment processing times, lower costs, and greater transparency than traditional methods.

This piece appears in The Paypers and discusses a theme that we have been covering for many years, one that has accelerated during the past two-plus years; that is the increasing reliance upon fintechs by FIs in terms of modernizing capabilities to meet the growing corporate (and government) demand for better financial operations. A big part of that collaboration is of course payments, which incorporate both the payables and receivables aspects of company systems and processes, then expands beyond those into procurement and financing options as well. 

‘Over the past decade, there has been an increasing digitalisation of B2B payments and processes, and fintechs have significantly contributed to this digital transformation. Even though paper cheques are still widely used for B2B payments in some markets like the US, there has been a strong shift towards more innovative and, most importantly, digital solutions facilitating B2B processes and payments…

Fintechs have targeted specific pain points to create innovative and digital value propositions that bring significant benefits to both SMEs and corporates. This article analyses how fintechs are changing B2B payments across different use cases and have become key enablers to boost B2B payment growth.’

The author goes on to point out some of the shortcomings associated with non-digital systems and processes, which remain emblematic in large pockets of U.S. corporate financial operations, as evidenced by the continuing reliance upon paper checks for B2B payments (in the general range of 40-45%). The piece then goes on to discuss certain use case categories and instruments where fintechs have continued to grow capabilities, some directed towards corporate adoption and many in concert with banks seeking faster to market solutions for key constituencies. As we have pointed out many times, the early days of fintech were more or less dedicated to consumer propositions since the path to revenue was quicker, but as more and more entrepreneurs became familiar with corporate uses, that effort has widely grown into B2B solutions.

‘Fintechs have understood the pain points of SMEs and corporates and how they can provide specific solutions to address particular needs. This will be further amplified by the development of open banking provided by fintechs such as Bottomline, Trustlayer, Volt, and Yappily to facilitate cash management and initiation of payments…

By simplifying and digitalising B2B processes and payments, EDC expects fintechs to continue developing relevant value propositions and addressing the very needs of both SMEs and corporates. Fintechs have contributed – and will continue to contribute – to the growth of B2B payments.’

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

Tags: B2Bb2b paymentsdigitalizationdigitizationFinancial InstitutionFintechfintechsModernizationpayments modernization
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023
    liquidity management

    Liquidity Management Takes on Increasing Importance in Uncertain Economic Times

    March 14, 2023
    payments

    Key Challenges from Growing Payment Methods and Volume

    March 13, 2023
    Data Governance is a Journey, financial data

    How FIs Can Power Their Operations with a Modern Data Architecture

    March 10, 2023
    ISO 20022

    How Banks Can Realize Business Benefits and Reduce Payments Fraud With ISO 20022

    March 9, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Autorek complimentary report: Payments Industry Outlook 2023: