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Adoption of commercialcards in B2B payments has emerged as one of the hottest industry topics of the year thanks to new FinTech innovations and industry leaders like Visa and Mastercard making a push further into the market. These are optimistic observations for an industry where commercialcards have struggled to get off the ground.
Consumers around the world have become intimately familiar with the “card-not-present” method of payment. Now businesses in Asia have an option to embrace “card not needed” as the pandemic continues to accelerate business models. That option, which extends to commercialcards , is being presented by Singapore-based CardUp.
There is more than one way to drive commercialcard innovation. For vendors, commercialcard acceptance can be a matter of wielding technology to lower interchange costs. For vendors, commercialcard acceptance can be a matter of wielding technology to lower interchange costs. A Focus On Transparency.
Corporate financial services providers taking aim at accounts payable friction this week pulled double-duty with new tools that also addressed friction for clients’ suppliers. Bank introduced a new eBilling tool also designed both for billers and payers. Bank Targets Both Billers and Payers. Finally, U.S.
When the B2B payments industry began considering what to expect for 2018, commercialcards weren’t often on the radar. Yet, 2018 was certainly a big year for commercialcards, and for credit card giants’ B2B payments aspirations overall. Visa Acquires Fraedom.
At the dawn of 2020, commercialcards made up only a fraction of overall B2B payments volume, even as corporates continued their slow-but-sure payments digitization efforts away from the paper check. But in the midst of the coronavirus crisis, the corporate card seemed to unlock more value for businesses large and small.
Though credit cards were not originally designed to address the needs of corporate payers, advances in commercialcard technology have positioned the payment tool as one that’s gaining traction in the accounts payable department. “But in the cross-border space, it’s a different ball game.”
As payments giants like Visa and Mastercard shift the innovation spotlight onto B2B transactions, developers of new accounts payable solutions are ushering in a growing trend: designing payment tools not just for the payer, but for the B2B supplier as well. Below, PYMNTS looks at the latest in AP that does exactly that.
With payment bigwigs like Visa , Mastercard and American Express pushing further into the B2B payments space, commercialcard adoption is being driven by more than growth in the number of card products available. “It streamlines payments and ease of paying by card,” Weiss told PYMNTS in an interview.
Indeed, solving some of the biggest AP challenges increasingly requires aa strategic focus not just on the payer, but on the supplier accepting that transaction. Moving the needle in the journey away from paper checks isn’t a one-sided battle, either.
While QuickBooks is piloting card payments on invoices powered by PayPal , Airwallex is readying the launch of its own corporate card — both physical and virtual — designed to enable cross-border payments. Below, PYMNTS rounds up the latest in commercialcard innovation. QuickBooks Adds Card Payment Support.
Although the solution was initially designed for migrant workers to move money abroad more easily, the mobile app, which uses a QR code to facilitate global payments, could address global payments friction in a B2B context as well, the companies said. Plastiq Eases Card Rail Friction. Mixing Payment Rails Drives SMB Revenue.
In B2B payments, it’s not just the movement of money that’s a pain point for companies — it’s the tracking of that payment and the ability to reconcile those transactions that can be a major headache for both payers and payees. In an announcement on Tuesday (Oct. Partnerships & New Initiatives, Visa Business Solutions.
“It solves a convenience problem,” Chahal explained, noting that integrating payments and invoicing addresses friction on both the AP and AR side. “Nobody will take your money unless it’s cash or secured by a bank-to-bank transaction,” he said, adding that for many payers, “cash is still king.”
However, the real proof of progress in B2B payments, Phalen said, is in how industry stakeholders — including FIs, FinTechs and corporates — have overhauled how they think about those commercial payments challenges as they move forward to tackle them. Thinking Beyond the Payer. Payment Rails Converging.
Commercialcards make up just a fraction of the supplier payments space, but the rise in virtual card technology – and the efficiency and security that come along with it – could help card issuers grab a larger slice of the B2B payments market. One-time use makes cards very secure and less susceptible to fraud.
Invoice Central, the B2B billing and payments portal owned by Billtrust, has a unique strategy to address payment discrepancies. CommercialCard Acceptance. One of the largest discrepancies between buyers’ and suppliers’ payment preferences is the commercialcard. Faster ACH Onboarding.
Solutions like Visa B2B Connect are able to address both the need for ease-of-use and access to data through measures like adoption of the ISO 20022 messaging standard, which enables seamless exchange of payment data. B2B vendors often carry the burden of B2B payments friction. Speed Takes Center Stage.
While traditional B2B payment methods like wire transfers and checks remain common, the corporate credit card market is projected to grow at a CAGR of 7.3% Choosing a B2B payment system crucial to addressing common challenges that B2B payment systems face as well as improving client experience. Learn More What are B2B Payments?
Talk is growing of the potential for virtual card technology to address several key points of friction in business payments, especially in corporate travel. But as the virtual card hype builds, some shortcomings have surfaced too. Overall, virtual cards — indeed, commercialcards as a whole — still face adoption barriers.
The payment experience is a critical aspect of addressing both AR and AP needs, he continued, with businesses not only requiring transparency and convenience, but also choice. Further, that choice must also expand into the area of data.
I think the real issue here will be: Will legal dispute settlement systems accept a distributed ledger as a way of resolving a conflict if and when it were to arise between a payer or receiver?”.
” Perhaps the most obvious reflection of this challenge can be seen in the commercialcard space. B2B payment technologies that seek to address the small business customer must be able to “decouple” buyer and seller payment preferences. Indeed, Bar predicted that adoption will be limited in this space.
They may be the incumbents, but they’re also operating, in many cases, with legacy infrastructure that isn’t capable of supporting the kind of speed, transparency, visibility and efficiency now demanded by corporate payers and other players in the B2B payments ecosystem. Forging a Different Path.
We’re trying to make a better transaction for buyers and sellers and addressing the root cause of what drives a lot of cash flow challenges ,” he said, adding that the delay in payment is often the result of liquidity issues on the part of the buyer who, in turn, creates working capital issues for the seller.
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