The payments industry has recently seen a surge in technological advances. Real-time payments, blockchain and same day ACH have all emerged as alternate payment solutions, driven primarily by fintech innovation. But although these technologies have been rapidly adopted by B2C e commerce practitioners, the B2B segment has lagged behind in payments innovation. Why?
There’s no question that the B2C payments innovation trend is provocative to corporates. In the 2019 B2B Payments Survey Report Strategic Treasurer states that banks are increasingly being asked for automated B2C payment services by their corporate customers, with PayPal and Zelle leading the pack as examples of streamlined payment models corporates are interested in pursuing.
Global Finance Magazine recently attended a Business Payments Roundtable to learn why there seems to be a lag in the B2B adoption of cutting-edge payment technology. Experts on the panel included Ben Ellis, SVP Strategy, Visa Business Solutions, Visa; Uma Wilson, EVP, Director of Product Management, UMB Bank; and Brian Greehan, VP Channel Partner Sales, Bottomline Technologies.
The panel touched on a perceived shift in the industry as fintechs, banks and payment network providers collaborate to bring B2B payment technology into the future. What does that look like? In short, banks are increasingly open to partnering more broadly with fintechs to offer their corporate customers faster and more secure payment options.
In fact in the same Strategic Treasurer survey, it found that 76% of banks are already partnering with fintechs in some capacity, whether to bring new payment capabilities to their entire customer base or to bring specialized options to specific customer bases.
To find out what these industry experts are saying about payments innovation in the B2B sector, read the full article here: Easing the Payments Innovation Deficit.
For even more insights into the payments industry and beyond, subscribe now and stay up-to-date on the latest trends and topics.