B2B firms have two items at the top of their wish list this holiday season: more liquidity, and greater operational efficiency.
These dual priorities reflect the pressure to navigate uncertain economic conditions, escalating supply chain complexities and evolving customer expectations.
Today’s financial landscape represents a golden era of working capital and embedded finance solutions designed with a lens toward corporations looking to scale and compete.
Take, for example, the news Thursday (Dec. 12) that Slope has launched a commercial buy now, pay later (BNPL) card solution, powered by Marqeta, enabling brands and marketplaces to allow their B2B customers to pay in-store or online with 30- or 60-day loan options.
Solutions like embedded BNPL for B2B can help businesses reduce friction in procurement and sales processes, ultimately boosting liquidity and operational efficiency.
Liquidity has always been the lifeblood of business, but in today’s volatile market, it’s more critical than ever. B2B firms are increasingly seeking ways to optimize working capital, reduce payment cycle times and access financing options that keep cash flow predictable and robust. Whether through dynamic discounting, embedded finance solutions or innovative receivables programs, liquidity is no longer just a finance team’s concern — it’s a strategic imperative.
At the same time, operational efficiency is also climbing the priority ladder. Companies are turning to automation, data analytics and digital transformation to streamline processes, reduce manual touchpoints and minimize costs. From procurement to payments, inefficiencies that were once tolerable are now glaring bottlenecks as firms look to scale without compromising agility.
Against this backdrop, the best gift B2B firms can receive this holiday treason aren’t under a tree — they’re in their balance sheets and back offices.
Read more: Could Micropayments Be the Next Frontier for B2B Commerce?
While liquidity and operational efficiency are interconnected, achieving both can sometimes create tension. For example, extending payment terms to improve liquidity might strain supplier relationships, impacting operational efficiency. Similarly, investing in automation can require significant upfront costs, temporarily affecting cash flow.
For B2B firms, it can be about finding the right mix of short-term tactics and long-term strategies. Virtual cards are emerging as an attractive solution for B2B firms looking to enhance both liquidity and operational efficiency.
Unlike traditional credit or debit cards, virtual cards are generated digitally for specific transactions, offering greater control and flexibility. They are increasingly being used to manage working capital more effectively while addressing some of the persistent inefficiencies in B2B payments.
On the operational side, virtual cards simplify and streamline the payment process. Each card can be tied to a specific transaction or supplier, reducing the complexity of reconciling payments. This granular level of control eliminates the risk of overpayments or fraud, which are common pain points in traditional B2B payment methods.
The PYMNTS Intelligence report, “CFOs Want Virtual Cards in Their Toolkits,” found companies plan to increase their use of virtual cards in the next year, driven by a need for financial flexibility, managing unplanned expenses and managing economic uncertainty. The highest levels of interest in virtual cards are seen in the media and technology sector (28%) and the fleet and mobility sector (26%), indicating high demand in industries where financial flexibility and operational control are critical.
Read also: Click, Pay, Done: How Embedded Payments Could Transform B2B
While B2B innovations can offer significant advantages compared to traditional methods, they are not without challenges. Not all suppliers accept card payments, for example, especially in industries where checks, ACH and wire transfers dominate.
“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.
But as more suppliers embrace digital payment methods, the barriers to adoption are likely to continue to diminish. Companies are embedding financing options, payments and insurance directly into their platforms, enabling more efficient workflows for buyers and suppliers alike.
“We’re injecting payment capabilities into business software platforms — whether that’s accounts payable, accounts receivable, vertical SaaS, or [ERP] systems,” Daniel Artin, head of FinTech partnerships at Boost Payment Solutions, told PYMNTS.
“Research shows that the volume of embedded B2B payments today is around $2.5 trillion, and we expect that to grow upwards of $6.5 [trillion] to $7 trillion within the next two to three years,” Artin said.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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