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Data for this episode of Truth In Data is provided by Mercator Advisory Group’s report – B2B Payments: More Options Than Ever Before
- Card-based payments are delivered through established networks, either open-loop or closed-loop. There are 4 types:
- Commercial credit cards: Typically target mid-to large-market organizations with a wide variety of use cases
- Prepaid cards can target any use market – but are typically built for a single specific use case (ie. not general purpose)
- Fleet cards can target any type of business but, by defnition, require an organized fleet ecosystem
- Business Cards: Are used almost exclusively by small businesses, typically those with revenue less than $10 million
- BONUS: Good Old Paper Checks are processed through the Federal Reserve at a single processing center. Once cleared, the banks involved update the accounts of writer and receiver. Typically takes 2 days, used to take 5.
About this report
Fintechs’ digital solutions are changing the business-to-business payments space. As new technology emerges and modern upgrades to legacy systems provide better user experiences, businesses have an expanding array of choices for more effective and efficient business-to-business (B2B) payments. The influence of financial technology companies (fintechs) on the B2B space is growing and filling in the payments gaps as usage of paper payments starts to fade away.