Data: B2B payments go digital
While the consumer payments market quickly eschewed checks for mobile and card-based payments, the B2B sector clings to physical checks as a standard payment form. It is true that business check usage is down from peak levels years ago, however, checks hold an important position between ACH debits and credits, which have an average value in the thousands; and card-based payments, which have an average value in the low hundreds of dollars.
Businesses see value in faster payment technologies such as Same Day ACH and conversion from checks to card-based payments. By adopting faster payments, businesses have more flexibility to make last-minute payments and emergency payrolls, or gain a larger window for early-payment discounts. Similarly, payment cards represent an opportunity to streamline purchases, improve payment reconciliations and give greater visibility to overall cash flow.
Overall, B2B payments represent a massive opportunity for banks, payment vendors and financial services organizations, as clients of all sizes are eager to improve the purchase and bill pay process while benefiting from new payment technologies that have come to market.