From contactless to e-commerce, consumers are leveraging digital tools more than ever to simplify and enhance their daily lives. But for large companies and their B2B payment processes, which are by their very nature more complex, they are only just beginning
to experience the similar benefits that we’ve come to expect as consumers; seamless, smart, and instant transactions.
Compare today’s typical consumer payments experience — increasingly seamless and secure — with the equivalent commercial experience — often slow, disjointed and dependent on a multitude of enterprise resource planning (ERP) platforms and processes to invoice
customers, pay suppliers, and manage transactions. Now businesses increasingly expect a consumer-grade experience as standard, with all the benefits that innovation, open banking and API-enhanced integration bring. The market is responding: the B2B payment
solutions market is expected to grow by almost 12% annually over the 2023-2030 period.
In 2025, businesses of all sizes, ranging from small enterprises to multinational corporations, will be seeking methods to streamline their payment and cashflow management processes and integrate new, more efficient payment technologies. We anticipate the
continued adoption and rise of digital-first tools and processes; with a heightened demand for automation, data-driven payments and AI powered efficiencies that enable businesses to prioritise cost control, operations, and working capital optimisation.
Embedded finance as a transformative tool
Embedded finance — the integration of financial services into non-financial platforms — has seen its highest-profile applications in the consumer realm, where it’s giving individuals new control over their spending, money management or investing. But in
the more complex world of B2B payments, embedded solutions are catching up.
Embedded finance has revolutionised B2C interactions and is now transforming B2B payments. By integrating payment solutions directly into enterprise platforms, procurement systems, and industry-specific applications, businesses can streamline their financial
operations, reduce friction, lower transaction costs and enhance efficiency.
For example, in supply chain, embedded solutions enable a B2B version of ‘buy now, pay later’, in which companies can spread out payments to suppliers over a period. Credit solutions integrated into ERP platforms are instantly extending loans to suppliers,
transforming the invoice process. Another example is in the treasury office where payroll innovations are automatically disbursing salaries and handling tax documentation and other bookkeeping matters.
Empowering businesses with seamless cross-border transactions
Businesses are also increasingly demanding faster, more seamless, and transparent cross-border transactions. According to data from McKinsey, cross-border payments have been growing at double-digit rates, as businesses expand their supply chains and operations
internationally, but companies have previously relied on traditional cross-border systems which can be slow, complex and costly.
An increase of modern money movement offerings are enhancing global cross-border payments and addressing these key pain points, and these solutions will be key to empowering businesses to operate as efficiently and seamlessly across borders as they do domestically.
Embedded finance can ease international trade and supply chain management, making global trade more resilient and accessible. By integrating various operations into an intuitive one-stop digital platform, businesses can make and receive payments and access
financing and value-added services more easily, enhancing operations and improving liquidity.
Smarter automation
As seamless payments become a baseline expectation for organisations, the next step is toward intelligent, embedded, and programmable payments that deliver new levels of automation and efficiency.
For example, in forecasting where poor cash flow management is to blame for as much as 82% of business failures. Solutions that sift oceans of payment, customer and supplier information to ensure optimal liquidity could mitigate this problem.
This shift toward intelligent, invisible operations should have dramatic effects for how companies work. In a recent survey of global finance function leaders, 56% said that AI would have a “revolutionary” effect on financial processes, particularly when
it comes to efficiency and risk.
The rising influence of fintechs
The B2B payments ecosystem is witnessing a surge of new fintech players who are driving faster product development and setting new standards for an improved user experience. As a result, traditional banks will increasingly partner with and integrate fintech
solutions to enhance their current offerings. We will witness a shift towards open banking and API-driven solutions, as businesses come to expect seamless interoperability between banks, fintechs, and enterprise platforms, and this collaboration will be essential
for driving the pace of innovation and meeting evolving demands across the industry.
Virtual cards take centre stage
Virtual cards give unprecedented control over when, where and how
they can be used. Businesses can offer these instantly to their contingent workers for specific use cases with strict buying controls, with full visibility for the employer. For example, offering virtual cards for business travel for specific hotel stays,
to fleet drivers for fuelling; and other job-specific purchases. Since payment comes straight from company accounts, back-end reconciliation work is minimised and authorisation streamlined. The global virtual cards market size was valued at $415.1 billion
in 2023 with virtual card transactions predicted to increase by almost 300% by 2028.
Although not new, virtual cards are becoming crucial in B2B payments by enabling faster, secure and flexible transactions. Corporations are using virtual cards to boost efficiencies across various departments, including accounts payable, accounts receivable,
procurement, travel management, and treasury. Increasing regulations in markets around the world that keep enterprises accountable for late payments have also resulted in virtual cards emerging as a critical solution, enabling them to meet these new directives
and pay suppliers sooner.
Towards the future
Embedded finance will seamlessly integrate into business operations, transforming payments into essential yet invisible tools. By automating workflows and providing real-time insights, businesses will be able to focus on growth and strategy, with payments
acting as an unseen accelerator driving progress.