The second part of our Payments Industry Trends series explores how banks are partnering with fintechs to drive payments growth.

This installation focusses on how both banks and corporates are leveraging emerging payments services to deliver more innovative and comprehensive offerings to their clients.

Consumer Experience Drives Corporate Expectations
It’s no secret that the B2C (Business-to-Consumer) payments landscape has seen a significant shift towards faster payments. With B2C payments providers like PayPal, Zelle, and Visa Direct moving prominently into the spotlight of consumer payments, money is moving faster now than it ever has before. As corporate payment professionals grow accustomed to faster payments in their consumer lives, the expectation for innovation within the business payments world is strongly geared towards the same.

This year’s survey found that 76% of banks have corporate customers that are asking for automated B2C payment services. This is echoed by nearly half of the corporate respondents involved in this year’s survey indicating they are interested in using B2C services in the future. As the trend of faster payments continues to grow rapidly within the B2B payments space, it is important for your organization to stay up-to-speed with the latest and most secure payment solutions with the potential to revolutionize the way businesses pay and get paid.

Emerging Payments Services
Faster business payments are gaining traction within the B2B payments landscape as organizations begin to leverage the many benefits associated with the increasing speed of payments. Emerging payment services are helping corporates by allowing organizations of all sizes to fully optimize their cash flow management for reporting as well as providing them with the opportunity to take advantage of possible discounts for early payments. Corporates are also leveraging automated business payment services to eliminate costly and time-consuming paper-based processes that hinder an organization’s ability to optimize efficiency and maximize revenue.

This year’s survey saw significant interest in the rise of real-time payments (RTP), as it tops the list of emerging payment services that corporates are interested in. Of the corporates that indicated they use or are interested in using faster payments services, both small and large organizations agree that RTP are followed by same-day ACH and blockchain services.

The Future of Payments
B2B mobile applications have also seen a substantial increase in market penetration in recent years. For instance, 13x more corporates indicated that their comfort level with mobile payments has improved in the past year. Additionally, 90% of banks indicated that mobile apps are important for their B2B payment offerings. As a forward-looking member of the payments industry, investing in mobile apps for your payment capabilities will position you to dominate the future of payments.

emerging payments

While corporate familiarity with, and trust of, mobile apps has widely improved, corporates feel that security features of mobile apps need to be further enhanced. With the threat of cyber fraud constantly growing in the modern era of B2B payments, corporates are placing security at the top of their priorities when evaluating new solutions.

Don’t Miss the Faster Payments Train
With a wide-spread increase in corporates that are using or interested in using faster payment services, payment professionals are searching for innovative and comprehensive solutions that ensure both the speed and security of B2B payments. If your organization is not seriously considering faster payments, you are in jeopardy of getting left behind, as new solutions for B2C and B2B payments increasingly penetrate the market.

To find out how your organization’s B2B payment capabilities compare to those surveyed, download the 2019 B2B Payments Survey Report.

And for even more insights into the payments industry and beyond, subscribe now and stay up-to-date on the latest trends and topics.

Follow these links to see the other posts in this series:

Payment Industry Trends, Part 1?

Game Changing Technology, Part 2?

Posted by Sam Sweet

Sam Sweet is a featured SmartPayments contributor who brings a global perspective to his writing. He is currently studying communications at Denison University and interning at a fast-paced, multi-faceted marketing department at a leading fintech organization specializing in global payments, banking solutions and fraud prevention platforms.