B2B payments are still complicated and slow and in this context, I would highlight cross-border B2B payments which are even more complex and slow This report explores the state of B2B payments and what we should expect next 👉 The State of B2B Payments 2024 Over the past 20 years, businesses across the globe have been shifting from more traditional payment channels to digital ones. According to ongoing research by the Association for Financial Professionals (AFP)1 , automated clearing house (ACH) transactions currently dominate the market, reflecting 39% of payments made to major suppliers in the United States and Canada. By contrast, paper checks only reflect 33% of the market, witnessing a 40% drop from its leading position in 2004 and a 9% drop since 2019. Other, more modern digital payment strategies— such as wire transfers, credit card transactions, and real-time payments—make up a considerably smaller portion of the market. Still, these methods have been steadily gaining ground over the past few years and better align with the goals of many businesses. In particular, organizations are looking to speed up the overall payment process; however, concerns regarding the underlying technology costs and related security challenges continue to drag on their progress. While the electronic B2B payment revolution progresses slower than previously projected, fundamental change is still coming. Paper grows obsolete every day as digitization penetrates and disrupts every industry. Given the multiple economic drags in the market, innovators will be searching ever more fervently for ways to deliver to buyers and sellers exactly what they want—faster, safer transactions. 👉 Key Insights: 🔸 Speed remains the market priority, suggesting that checks will continue to lose ground while real-time payments gain it 🔸 Regulations will only grow more layered and complicated as increasing numbers of local, regional, and national governing bodies take action 🔸 Simplified, streamlined processes and solutions that cut out waste will thrive as businesses and payment channels leverage automation and AI 🔸 Market segments to watch for growth include virtual cards, digital wallets, North America, and the Asia-Pacific region 🔸 Fraud will follow the money, shifting the focus of more criminals and ne’er-do-wells towards electronic and online B2B payment channels as they rise in prominence Subscribe for more insights https://lnkd.in/d94JgWBU Source Invoiced #fintech #b2b #payments Brice Ali Alex Grant Nafis Monica Lex Theodora Saleh
Andrii Sokorenko
4mo
It is sad to see that Europe is lagging in the adoption of digital payments compared to Asia-Pacific and North America
Informative!