A posting in Spend Matters provides an overview of different B2B payments areas where investment money has been pouring in, especially during the past 6-12 months. We have ongoing member research coverage for each of the specific areas mentioned. The massive B2B global payments market has all sorts of simultaneous developmental, investment, and collaborative events occurring.
‘B2B payment companies have raised significant amounts of capital recently, including Currencycloud ($80 million), AvidXchange ($260 million), Tipalti ($76 million, Transferwise ($292 million), Marqueta ($260 million), Ripple ($200 million) and Paystand ($20 million). Of course, Mastercard (AvidXchange) & Visa (Currencycloud) are behind some of these investments, driving B2B card use through the rails.’
The author goes on to make a number of valid observations as to the underlying drivers of B2B mania. These include shifts from paper to digital, new cross-border technology, cash cycle process and systems convergence, and so forth. All these areas are covered in our ongoing member research.
A review of the 2020 Outlook will also provide a view into research calendar topics for the year. Another good point made is the IoT impact, as businesses adapt to the real world faster demands that we see in the home. The path for digital banks usually follows the consumer > small business > up the ladder model, while fintechs find a spot and exploit and partner. Banks will need to find a way as well.
‘The “productization” of B2B payments presents a threat to banks’ transaction banking business and the associated revenue stream, certainly as product B2B payment companies go after smaller and mid-size corporates. Product B2B payment companies compete for customers with the banks, while infrastructure plays typically offer services to banks, credit unions, brokers, to help them develop new products in this increasingly digital and mobile world.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group