What B2B Payments Trends Should You Be Aware of in 2024?

When it comes to making business-to-business (B2B) payments, staying ahead of the curve is crucial for companies to thrive in the global marketplace. From cross-border solutions to the rise of blockchain technology, the way businesses handle financial transactions is undergoing a significant transformation.

In this article, we'll explore some of the top B2B payments trends, and their benefits, highlighting how your business can use them to transfer money with ease.

Top B2B Payments Trends

The demand for the latest payment technology to gain efficiency through automation is increasingly evident. Here are some of the top trends in B2B payments to follow.

Quick overview:
Cross-Border Payments Solutions Blockchain Payments Electronic Payments vs Checks Virtual Cards Payment Automation Accounts Payable Automation Accounts Receivable Automation Fraud Prevention Embedded Banking AI and Machine Learning API Integrations

Cross-Border Payments Solutions

International expansion is a goal for many businesses, but managing exchange rates and handling cross-border payments can be challenging.

🔍 Did you know?
As many as 95% of finance professionals say they would be able to increase international expansion if there was a better way to handle exchange rates. Fifty-six percent say they “struggle a great deal,” and 88% say collecting international payments inhibits their growth ability.¹

Cross-border payment solutions aim to simplify and optimize the process of transferring money between businesses in different countries. These are third-party payment processors or platforms that automatically handle currency exchange and other logistics to ensure payments are completely quickly.

Cross-border transfers between bank accounts typically use the international SWIFT network to move money, requiring Bank Identifier Codes (BICs) and International Bank Account Numbers (IBANs).²

Cross-border B2B payment methods include international wires, bank transfers, and platforms such as PayPal and Wise.

Cross-border payment providers can offer a more streamlined approach to international payments than traditional banks. Banks can often take several working days to complete a transaction. They also tend to charge high fees. Third-party services can reduce the complexities associated with currency conversions and facilitate smoother cross-border transactions.

Businesses can use cross-border payment solutions to send and receive international payments more efficiently by reducing the time and costs they take to complete. This can help them expand into global markets faster.

💡 Wise Business simplifies B2B international payments, helping you to save money on fees and take the hassle out of international transactions.

Blockchain Payments

Blockchain technology is revolutionizing payment processing services by offering fast, secure, and cost-effective international transactions. It does this by using encrypted distributed ledgers, eliminating the need for intermediaries like correspondent banks and clearinghouses.³

Blockchain protocols enable real-time verification, clearing and settlement for B2B payments, while offering increased transparency and reducing the risk of fraud. Smart contracts can help facilitate instant payments and automate payment flows to increase efficiency.

The total value of B2B cross-border payments stored on blockchains is forecast to exceed $4.4 trillion by 2024, up from $171 billion in 2019, research shows.⁴

Ripple, Visa and IBM are driving innovation in cross-border blockchain payments, helping businesses save time and money while ensuring the security and integrity of their financial operations. Businesses can use blockchain payments for international transactions, supply chain finance, and even payroll processing.

Electronic Payments vs Checks

The shift from traditional paper checks to electronic payments has been gaining momentum in recent years. Back in 2020, research firm Gartner predicted that 80% of B2B sales interactions between suppliers and buyers would be digital by 2025.⁵

Electronic payments offer speed, convenience, and cost savings. They enable businesses to send and receive payments faster, reducing the time spent waiting for checks to clear. Moreover, electronic payments are environmentally friendly and contribute to a paperless office environment.

The 2022 B2B Payments Survey Report from Bottomline Technologies showed that 36% of companies still used checks for more than half of their payments.⁶ But the remaining two-thirds of respondents relied on electronic transactions for the majority of their payments.

49% of the respondents plan on converting from paper check payments to electronic methods such as bank transfers or cards.⁷ This shift can improve cash flow, reduce administrative burdens, and enhance financial efficiency.

Virtual Cards

Virtual cards are digital versions of physical debit or credit cards with a unique card number, security code and expiry date. They are gaining popularity, with global virtual card transactions projected to grow substantially in the coming years.

Juniper predicts that the total value of global virtual card transactions will soar by 340% from $28 billion in 2022 to over $121 billion in 2027. Roughly $71 billion of that will be exclusively handled by US businesses.⁸

Virtual cards offer enhanced security, control, and flexibility. Businesses can issue virtual cards for specific uses or transactions, reducing the risk of theft or fraud. They can also simplify expense tracking and management.

Businesses, especially in the US, are increasingly using virtual cards for various purposes, such as vendor payments, employee expenses, and online purchases. The ease of use and security benefits make virtual cards an attractive option for B2B transactions.

If your business is in the US and does not have multiple shareholders, you can get a Wise digital card for business.

Payment Automation

Payment automation involves using technology to carry out tasks automatically, optimizing the entire payment process from the initiation of payments to reconciliation.

Accounts Payable Automation

Accounts payable automation involves automating invoice creation and delivery, streamlining the payment process to ensure timely payments from clients. This is faster than manual invoicing processes, reduces errors, and improves cash flow by ensuring that businesses receive payments on time.

A 2022 survey found that 32% of US businesses were planning to automate their accounts payable processes within the next 12 months. This trend helps businesses manage their finances more efficiently.⁹

Accounts Receivable Automation

Automating the process of tracking and following up on outstanding invoices can reduce the time and effort required to chase overdue payments. Businesses can maintain better cash flow by ensuring timely collections.

A study by PYMNTS and American Express revealed that firms using automated accounts receivable processes spend 67% less time following up on overdue payments compared to those with manual processes.¹⁰

Fraud Prevention

Fraud is a critical concern for businesses. US Businesses will lose an average of 5% of their gross revenues to fraud, according to a 2022 report by the Association of Certified Fraud Examiners (ACFE).¹¹ Enhanced fraud prevention measures help protect businesses from financial losses and reputational damage, ensuring the security of their financial transactions.

Robust fraud prevention systems are essential for all businesses, particularly those handling high volumes of transactions. Investing in advanced security measures can safeguard a company's financial integrity.

One in three organizations intends to invest significantly in fraud detection and prevention in the next 12 months, research shows.¹²

Embedded Banking

Embedded banking involves integrating banking and financial services directly into other business processes, providing seamless financial operations. This eliminates the need to switch between different systems, simplifying tasks like payments, transfers, and reconciliation.

Businesses can leverage embedded banking to improve the efficiency of their financial operations, reducing the time and resources spent on managing finances.

Banks in a Bottomline survey indicated a 10 percentage point increase in customers asking for an embedded experience in enterprise resource planning (ERP), from 29% in 2021 to 39% in 2022.¹³

👉 Looking to learn more about ERP tools? Find out more below!

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AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) technologies are being used to enhance fraud detection, optimize payment routing, and predict cash flow trends. These advanced technologies are not only enhancing traditional payment processes but also providing businesses with valuable insights and predictive capabilities.

They can enable businesses to make data-driven decisions regarding payments, reducing risks and improving efficiency.

AI and ML can analyze vast datasets in real-time, identifying unusual transaction patterns and flagging potentially fraudulent activities. They can analyze historical transaction data to identify the most cost-effective and efficient payment routes, market trends, and payment patterns. This can help businesses make more informed decisions regarding payments.

Bottomline’s survey shows 20% of businesses identified invoicing as a top opportunity reduce manual work with AI.¹³ Another survey by Microsoft revealed that 79% of small business owners are interested in learning more about how to apply AI to their business.¹⁴

API Integrations

An application programming interface (API) is a software interface that enables two or more computer applications to connect and communicate. API integrations enable businesses to make payments seamlessly within their existing workflows, to create a more streamlined and efficient payment process, improving overall operational efficiency.

API integrations can connect payment platforms directly with accounting or ERP systems. This automation eliminates the need for manual data entry when recording payment transactions.

Integrating payment APIs with tracking and reporting tools allows businesses to monitor payment statuses in real-time. This helps them to anticipate cash flow, identify payment delays, and act promptly to resolve issues, improving financial planning and decision-making.

API integrations with currency conversion services enable businesses to make international payments seamlessly. These integrations can provide real-time exchange rates, reducing the complexity of cross-border transactions and helping companies avoid unfavorable currency fluctuations.

💡 Wise’s API allows businesses to automate invoice payments, recurring transfers, standing orders, or payroll. It also makes it possible to generate payments from invoicing software, simplify expense reporting, track exchange rates and automate conversions.

What Benefits Can B2B Payment Trends Bring to Businesses?

The automating and streamlining of B2B payments can help businesses to gain not only efficiency but also a competitive edge. Adopting new B2B payment methods can bring several benefits to businesses.

Streamlined Payments

B2B payment trends, such as automation and API integrations, streamline the payment process, reducing manual tasks and the potential for errors.

Electronic payments and real-time transaction tracking speed up payment cycles, ensuring that funds reach their intended destinations promptly. They also lead to better cash flow management, which is critical for businesses to cover expenses, invest, and grow.

Speed

Electronic payments, coupled with features like automatic invoicing and approval workflows, facilitate prompt payments, helping businesses avoid late fees.

Cross-border payment solutions leverage technology to complete international transactions quickly, eliminating the delays often associated with traditional methods.

Convenience

Payment automation reduces the need for manual data entry, approval routing, and reconciliation, freeing up valuable time and resources. Businesses can offer various payment methods, including digital wallets and virtual cards, to cater to the preferences of their clients and customers.

Improved B2B Relationships

Timely payments and accurate record-keeping foster trust and collaboration with suppliers, building stronger relationships and potentially leading to better pricing and terms. Simplified payment processes also enhance customer satisfaction, reinforcing long-term partnerships.

Financial Visibility

B2B payment trends allow businesses to track payments in real-time, providing immediate visibility into their financial health and pending transactions. Advanced analytics and reporting tools offer insights into payment patterns, helping businesses make data-driven decisions to optimize their financial processes.

Compliance and Accuracy

Payment automation ensures businesses adhere to regulatory requirements and internal policies and minimize human errors, reducing the risk of costly discrepancies and compliance violations.

Conclusion: Is it Worth Following B2B Payments Trends?

The future of B2B payments will involve a more digital, connected world with faster and easier transactions. As businesses continue to adapt to these evolving trends, they will gain a competitive edge in the global marketplace.

Embracing cross-border payment solutions, blockchain technology, electronic payments, virtual cards and other methods can help businesses increase their efficiency, improve client relationships and expand internationally. Adopting payment automation and AI systems can help them remain agile in a fast-paced global market.

By staying informed and agile, companies can make the most of these trends.

Make International B2B Payments With Ease: Discover Wise Business

If you’re looking for a cost-effective and efficient solution to process cross-border B2B payments, Wise Business offers an easy, low-cost way to make international transfers.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can also get 9 major currency account details for a one-off fee to receive overseas payments like a local.

Take charge of your currency conversions with our rate alerts feature. Set your preferred exchange rate, and we'll automatically convert your funds when it reaches that rate, making sure you get the best value for your money.

Find out more about Wise Business

Avoid the complexities of juggling multiple currency accounts, as Wise Business allows you to hold and manage multiple currencies, all within one single, convenient account.

Simplify your financial tracking and reporting with the QuickBooks accounting connection to enable automatic data synchronization. For complete control and automation, the Wise API connection seamlessly integrates Wise's international payment solutions into your existing workflows.

These features allow you to initiate secure international transfers, access mid-market exchange rates, and track payments with ease.

Some key features of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms (such as Amazon or via Stripe). Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Batch payment options. Fast payment of up to 1,000 people.

🔍 Read the guide on how to open a Wise Business account, or discover the top B2B payments companies next!

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Sources:

1. Global expansion statistics
2. BIC
3. Blockchain in Payments | Blockchain Use Cases | LeewayHertz
4. Blockchain-based Cross-border B2B Transactions Skyrocket to $4.4tr
5. Gartner Says 80% of B2B Sales Interactions Between Suppliers and Buyers Will Occur in Digital Channels by 2025
6. 2022 B2B Payments Survey Report
7. B2B Payments Results 2022
8. Virtual Cards Market Research Report 2022-27: Size, Share
9. ACCOUNTS PAYABLE
10. B2B Payments Innovation Readiness Playbook - December 2020 | PYMNTS.com
11. Association of Certified Fraud Examiners (ACFE)
12. Fraud detection and prevention
13. 2022 B2B Payments Survey Report
14. Microsoft study: Small businesses intrigued by AI and the opportunities it brings

All sources checked September 2023.