In the B2B world, where deal sizes can soar into the millions, financial relationships are anything but straightforward.
This makes B2B payments acceptance a complex terrain of both challenges and opportunities.
By 2030, the B2B payments market size is projected to hit north of $170 trillion. But unlike their consumer-facing counterparts, B2B payments lack a standardized payment method. While credit cards dominate retail, B2B payments are a fragmented web of checks, wire transfers, ACH payments, digital payments and even cold hard cash.
The sheer diversity of payment options is both a blessing and a curse. Each comes with unique costs, settlement times and risks, creating a labyrinth for organizations to navigate as they seek to best serve their B2B partners of all sizes and geographies. Businesses need to align their payment acceptance policies with their corporate goals, which can be a complex process.
Despite the availability of various payment methods, many businesses still rely on traditional, comparatively inefficient processes like paper checks and manual reconciliation. This leads to delays, errors, increased costs and a lack of transparency.
While challenges such as legacy systems, data security and supplier resistance remain, after talking to dozens of senior payments industry executives for PYMNTS’ B2B Payments: Outlook 2030 event, it’s increasingly clear that the opportunities presented by automation, artificial intelligence (AI) and strategic partnerships offer a compelling case for change.
Read more: B2B Payments Aren’t Boring Anymore
In an era where every dollar counts, rethinking how businesses accept payments isn’t just a technical upgrade — it’s a strategic imperative.
The B2B payments landscape is undergoing a transformation, driven by technological advancements, evolving business needs and the increasing consumerization of business processes. This shift presents opportunities for innovation and growth, redefining how businesses interact financially.
21st century businesses have access to a wide range of modern payment tools. Among the innovations shared by experts in “Outlook 2030: How Platforms and Networks Will Power the Future of Business Payments,” a PYMNTS eBook, include B2B platforms meant to replicate the efficiency of consumer marketplaces by facilitating end-to-end transactions online, virtual cards and tokenization, real-time payments, embedded finance, digital wallets and even blockchain-based solutions like stablecoins.
Many of these tools, like B2B platforms and real-time payments, allow for the automation of financial processes, improving efficiency and reducing manual work. Tools like virtual cards, real-time payments and embedded finance can give businesses quicker access to funds and help them manage their working capital more effectively.
At the same time, technologies like tokenization and stablecoins, coupled with robust security protocols, can help to reduce fraud risks and improve security in B2B transactions. Digital platforms also can provide real-time data and insights into transactions, enabling better forecasting and strategic decision-making.
However, it’s crucial to note that, especially with innovations like stablecoins, the use of certain technology in corporate finance can commonly attract regulatory attention, requiring companies to maintain robust compliance practices.
Read more: The Great Paper Escape: Transforming Accounts Payable for the Digital Age
Integrating modern payment solutions with existing legacy systems can be complex and pose a significant challenge for businesses.
Adopting new payment methods can often meet resistance from suppliers, who harbor misconceptions about the associated costs, complexity and benefits. This lack of understanding frequently creates friction in payment cycles and slows the adoption of innovative solutions.
“The B2B money movement space has not yet benefited from some of the real innovations,” Seamus Smith, executive vice president group president at FIS, told PYMNTS, noting that checks still account for “nearly 40%” of B2B payment volume in the U.S., even though they are prone to fraud and reconciliation errors.
Automation offers a clear path to addressing inefficiencies in accounts receivable processes. From invoicing to payment reconciliation, automated systems reduce errors, speed up payment cycles and free up resources for strategic initiatives. By eliminating manual tasks, businesses can focus on growth and innovation.
Collaborating with FinTech companies and payment providers can help open the door to innovative solutions and a broader ecosystem of payment networks. Such partnerships can provide expertise and resources that amplify a company’s capabilities and competitiveness, although compliance and third-party risk management remain crucial.
Separately, AI-powered tools are transforming B2B payment processes by automating tasks, detecting fraud and providing predictive insights. These advancements empower CFOs to shift from reactive number-crunching to proactive strategic planning, positioning finance as a driver of innovation, as well as helping smooth out onboarding and acceptance professes.
In today’s evolving ecosystem, companies that prioritize innovation and adaptability will not only be positioned to overcome hurdles but also to unlock new growth avenues. By reimagining payment acceptance as a strategic enabler rather than a back-office function, businesses can stay ahead in a competitive world.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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