B2B Payment Solutions

Buy Now Pay Later (#BNPL) success has been driven by the consumer side, but it is increasingly its #B2B side that will be steering future potential. Let’s take a look. Getting paid is among the most critical problems companies face. Businesses fail, much more often, because of liquidity rather than the lack of capital. Bank lending cannot address this alone: According to Allianz (2019) the SME bank loan financing gap in the Eurozone is 3% of GDP or EUR 400 billion (vs 2% of GDP in the US). Things look much worse in emerging economies. So, what do suppliers do to sell? They provide trade credit to buyers, i.e. receive goods now but pay later in 30, 60, 90 days. Because lending is not always available, factoring (invoice financing) is one of the most popular ways that suppliers employ to improve liquidity: They sell their invoices to a third-party factoring company at a discount and get in exchange 80-90% of their value. Buyers pay the factoring company directly. In the end suppliers get the remaining amount of the invoices minus the factoring company fee. B2B BNPL can be a credible alternative. How it works: — Same logic and set-up as the B2C model — A provider integrates with the supplier and offers B2B BNPL as a payment option integrated at check-out — The provider does the risk assessment and provides the buyer installment payment terms — The seller gets upfront the total selling price — The provider controls the end-to-end flow (product, risk, integration, collections, etc) and manages default – it usually charges the supplier a % fee for these services The opportunity is enormous: estimates converge that #payments between businesses are on a global scale a $120 trillion market. A number of fintech providers are trying to build on the momentum: billie, mondu, Hokodo, iwoca, Tranch, Two, Playter are some of the most well-known. Even though the model is similar to its B2C sibling, there are some key differences: — Underwriting companies with much bigger amounts means considerably more risk — Customer journeys are much more complex in the business world with high KYC requirements, additional steps and an array of #software and systems (i.e. accounting, ERP) that come into play Which is why most of the competing players in the B2B space aren’t the big B2C names, but rather stand-alone fintechs focusing on the specifics of businesses (although synergies exist, i.e. Klarna has invested in Billie). B2B BNPL has the potential to revolutionize #business payments, but we are not there yet. Take-off depends on a number of factors with the following standing out: 1) Risk underwriting and fraud capabilities need to improve 2) Distribution via B2B software will be key 3) Marketplaces are top of mind 4) Focus on industries and verticals as a competitive edge 5) Emerging top players will be those addressing SME challenges in holistic ways beyond financing. Opinions: my own, Graphic source: greylock

Success factors for embedded B2B payments are dramatically different than C2B/consumer industries. We spend a lot of time with private equity firms evaluating prospective investments in software companies with payment ambitions. Usually the software supports SMBs that sell to consumers, where debit and credit card payments dominate and it is often possible to charge for ACH/direct deposit. Given my expertise, I also get involved in diligences for B2B vertical software. But there, the payment monetization gets tricky. Businesses are slower to digitize (still write a lot of checks), rely heavily on commoditized bank transfers (often subsidized by a bank, in exchange for deposits), and the payment is affected by the buyer, rather than the seller, weeks after the delivery of goods/service so a consumer-like card value proposition is less compelling. The holy grail in B2B is to construct a private payment network between buyers and suppliers and extract ad valorem (bps) revenue in doing so. That only works when the following conditions are true: ✅ The network is also addressing complex reconciliation challenges by orchestrating the exchange of information btwn buyers and suppliers ✅ The network can reduce fraud by vouching for legitimate suppliers, safeguarding sensitive payment data, or validating whether invoices are genuine ✅ The network orchestrates working capital for suppliers ✅ The industry is characterized by concentrated (powerful) buyers and fragmented suppliers ✅ There is a significant proportion of lower value, non-strategic spend Based on my experience, the MOST CRITICAL factor is ecosystem dynamics that give buyers bargaining power over their suppliers. The next questions are, of course: how many of these industries are there and how well served are they today? The alternative is to offer a solution that serves a broad range of industries and focuses on the subset of transactions that are relatively low value, non-strategic spend. This is the strategy that Bottomline and Avidxchange have pursued. Interestingly, both of those companies have recently expanded their private payment networks to a much broader range of industry participants so that more buyers can pay in their preferred manner (card or ACH+) to the suppliers that are within those networks already and have demonstrated willingness to be paid with proprietary payment methods. If you have B2B network fantasies, do reach out. My colleagues Justin Miller Graham Eckert and I have been spending a lot of time on embedded B2B and we would love to discuss your ambitions. Ps. For comparison, in the comments I've linked to a prior post that explores success factors for consumer-oriented embedded payments Pps. This is an admittedly U.S.-centric phenomenon

Want to save 3% on your checkout page AND get paid fast? Here's how. Most B2B checkout pages only offer one real option to enter a credit card. The moment you want to use ACH, wire, or anything else, it turns into a manual invoicing process. ➡️ Send an invoice, ➡️ Wait for AP to get around to it, ➡️ Reconcile manually. That option might be "free" to the company, but damn does it take a long time to get paid. We designed a beautifully elegant solution: We added ACH, wire, and RTP directly into that same checkout experience. Right next to the credit card field. Then we tell the merchant to add the subtext: "Pay by credit card for 3% or pay by bank for free." That one simple change can add 3%+ to the bottom line on every transaction that was previously relegated to cards. Plus, our platform reconciles the payment to their ERP, the same as if it were a card, so zero downside operationally. Being a credit card processor is the majority of our business, and we believe in making it an option. However, not all transactions need a risk premium for the transfer. Find the relationships that don't need that expense.

Bank of America’s Payments Stack: Infrastructure, Not Hype Bank of America isn’t chasing fintech headlines but it is quietly building the financial plumbing that embedded commerce runs on. Q2 2025 Snapshot -Net income: $7.1B (+3% YoY) -EPS: $0.89 (vs. $0.86 expected) -Revenue: $26.5B (+4% YoY) -Net interest income: $14.7B -Consumer card spend: $244B (+4% YoY) -Total payments volume: $1.2T Those numbers are solid. But the real story is how Bank of America is wiring its payments business into the fabric of modern B2B finance. CashPro®: BofA’s Embedded Operating System CashPro® is no longer just a treasury dashboard, it’s the interface for embedded payments, FX, liquidity, and fraud intelligence used by 40,000+ companies worldwide. In the last year: -API adoption rose 51% -78% of clients now connect CashPro® to ERP or TMS systems -Clients are onboarding in under 1 week QR sign-ins surged 60% YoY, crossing 2M+ sessions CashPro® is becoming programmable finance infrastructure used not just for visibility, but for execution and automation at scale. RTP: Real-Time, Real Use Cases Bank of America is a founding bank of The Clearing House RTP network. In Q2, it lifted its RTP transaction cap from $1M to $10M, unlocking high-value, real-time flows for: -Corporate settlements -M&A closings -Real estate transfers -Vendor disbursements and automated payroll Just six weeks after the cap increase, more than half of BofA’s RTP volume exceeded $1M. Treasury teams are now embedding RTP directly into their workflows using CashPro® APIs enabling programmable disbursements with finality, visibility, and speed. The Platform Playbook Bank of America’s edge isn’t flashy UX but it’s integration, scale, and reliability: >Merchant services woven into business banking and global treasury >RTP and FX rails exposed via developer APIs >Data intelligence + compliance layered into every flow >Global reach: 130+ currencies, real-time funding, automated reconciliation It’s not just offering banking products, it’s becoming financial middleware. Why it matters: As more finance flows through software, not branches the winners won’t be the loudest brands. They’ll be the quiet platforms that move trillions, in real time, behind the scenes. Bank of America seems to be doing that. #fintech #payments #rtp #treasury

🟣 Breaking down Stripe's newly announced stablecoin services. 1️⃣ The scope: 101 countries, instant settlement, and #Bridge technology seamlessly connecting traditional finance with digital assets. 2️⃣ The positioning in the global B2B payments: While Meta`s renewed Stablecoin plans target consumers and Coinbase focuses on developers, Stripe is laser-focused on the $150T+ B2B payments market. 🏗️ Technical Architecture: Smart contracts, multi-chain compatibility, enterprise-grade security 💼 Business Applications: From cross-border payments to supply chain finance 🛡️ Regulatory Framework: Multi-jurisdictional compliance with custody solutions provided by Bridge 📊 Key Differentiators: Business-first design with established payment infrastructure The positioning is clear: 💡 Adoption Catalyst: Stripe's existing merchant base provides immediate adoption potential - businesses can integrate stablecoin accounts into their current payment workflows without friction. ⚠️ Key Challenge: Success depends on establishing clarity around custody solutions and overcoming traditional business resistance to crypto adoption. This is advancing the ongoing shift in how businesses move money globally. What excites you most about this development? #Stablecoins #B2BPayments #FinTech #DigitalAssets #Payments #CrossBorderPayments #Stripe GrowFin GmbH - Global Tech Influencer Services

🔍 Embedded Finance: Reshaping the B2B Payments Landscape As B2B commerce evolves, embedded finance is emerging as a key driver of change—streamlining transactions, improving cash flow, and delivering tailored experiences for both buyers and sellers. 📌 Buyer Expectations Are Clear B2B buyers want flexible, fast, and seamless payment options. For low-frequency, low-AOV purchases, corporate credit cards offer convenience and real-time cash flow visibility. But high-frequency buyers with large AOVs often demand invoicing, extended terms, and detailed controls. 📌 Sellers Must Segment and Streamline Sellers need to align payment methods to buyer behavior. TreviPay’s Universal Acceptance, backed by Mastercard’s network, helps by offering: ▪️ Customized credit lines ▪️ Integrated invoicing and PO systems ▪️ Tailored payment experiences by segment 📊 The Results Universal Acceptance enables: ▪️ Faster onboarding with minimal integration ▪️ Reduced manual processing ▪️ Improved operational efficiency ▪️ Better buyer loyalty through trade financing As embedded finance gains traction, it’s redefining how B2B payments operate—simplifying the complex, reducing friction, and creating opportunities for growth across the supply chain. #B2BPayments #EmbeddedFinance #DigitalTransformation #TreviPay #Mastercard #Fintech #CashFlow #TradeCredit

International payments got you feeling like you're stuck in the dial-up era? Imagine a world where sending money overseas is as easy as sending an email. Did you know slow & expensive payments cost businesses up to 8% per transaction? Here's how to break free! Here's why the future of cross-border B2B payments is looking bright, and what you can do to get ahead of the curve. Why are Traditional Cross-Border Payments a Nightmare? 1/ Navigating a Labyrinth: Every country has its own banking regulations, making transactions complex and overflowing with paperwork. 2/ Hidden Fees: Like a bad surprise party, intermediary banks love to add surprise fees, and foreign exchange rates can be a real buzzkill. The total cost? Up to a whopping 8% of your transaction value! 3/ Waiting...and Waiting...and Waiting: Remember dial-up internet? That's the speed of traditional cross-border payments. Transactions can take days, even weeks, to complete. 4/ Transparency? Never Heard of Her: Unclear fees and exchange rates make it nearly impossible to manage costs and reconcile transactions. These inefficiencies strangle businesses, especially small and medium-sized enterprises (SMEs), hindering global trade. But wait, there's hope! The Future of Frictionless Payments is Here! - Fintech to the Rescue: Innovative financial technology companies are offering faster, cheaper, and more transparent payment options. Get ready to say goodbye to the paperwork jungle! - Regulatory Harmony: Countries are working together to streamline regulations, simplifying the cross-border payment process. How to Choose the Right Cross-Border Payment Partner? Not all heroes wear capes, but some wear user-friendly interfaces! Here's what to look for in your ideal partner: Must-Haves: 1/ Global Reach: Can they send and receive money where you do business? 2/ Transparency Matters: Can you see all fees and exchange rates upfront, no surprises allowed! 3/ Cost-Effective: Does the service fit your budget? Don't overpay for slow transactions! 4/ Security First: Are your funds protected from fraud? Bonus Points: 1/ Speed Demon: Need payments to zip across borders? Look for lightning-fast options! 2/ Convenience is King: Is the service user-friendly and easy to navigate? 3/ Traceability is Your Friend: Track your payments in real-time for ultimate peace of mind. 4/ Grow Your Business: Can the service help you tap into new markets? 5/ Reliable as Clockwork: Can you count on them to deliver every time? ️ 6/ Macroeconomic Benefits: Can you rely on the service to boost financial and economic connectivity between jurisdictions and within/between regions The Bottom Line: A seamless cross-border payment solution isn't just a convenience, it's a game-changer. What are your biggest challenges with cross-border payments? Share your thoughts in the comments below! #fintech #internationalpayments #globaltrade #businesssolutions 📸 Source: Kapronasia

Who’s still driving to the video store when streaming puts everything you need just a click away? It's the same idea as a business writing a check when they have modern, secure digital payment options. Checks in 2025? Believe it or not, nearly half of B2B payments in the US are still made with paper checks. 📝 But with stamps up, fraud up, risks up—paper checks are fast becoming a B2B burden. 📈 The latest analysis from PYMNTS highlights how rising postage costs and postal delays, along with record check fraud (63% of firms impacted!), make legacy payments expensive, risky, and a drag on supplier relationships. For US businesses, the “float” once prized with paper is rapidly eroding. Suppliers now prioritize faster-paying buyers, giving digitally-enabled firms better access to inventory and terms. 🚀 The upcoming Working Capital Index, commissioned by Visa, shows momentum building for digital solutions that turn payments from a back-office headache into a strategic lever. Visa Commercial Solutions helps clients move decisively away from checks to digital payments that strengthen supplier ecosystems, reduce operational risk, and unlock new ways to manage cash flow. 💡💙 Payment transformation is no longer about convenience. It’s now essential for competitiveness and resilience. The news couldn’t be clearer: the days of paper checks as “safe and default” are over. #Visa #B2BPayments #VisaCommercialSolutions #WorkingCapitalIndex #DigitalTransformation #NoMoreChecks Original source ⤵️ https://lnkd.in/eX8rNWFK?

𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗮𝗿𝗱 & 𝗝.𝗣. 𝗠𝗼𝗿𝗴𝗮𝗻 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝘁𝗼 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺 𝗕𝟮𝗕 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 💳 🤝 Mastercard and J.P. Morgan recently unveiled a groundbreaking collaboration that integrates Mastercard’s Multi-Token Network (MTN) with J.P. Morgan’s Kinexys Digital Payments. This blockchain-powered #DeFi partnership seeks to address long-standing pains in cross-border B2B payments, setting the stage for faster, more transparent, and more efficient transactions. _____ 🔑 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗖𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁𝘀 1️⃣ 𝗕𝗼𝗹𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗕𝟮𝗕 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 --> This partnership simplifies cross-border payments by empowering businesses to connect to both platforms via a single API, translating to faster payment processing and settlement. --> Also included are real-time value transfers, which eliminate delays caused by time zone differences and outdated systems. --> Businesses can now settle transactions faster, drastically reducing operational bottlenecks. 2️⃣ 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 --> By integrating blockchain standards with tokenized assets, this collaboration sets a new precedent for open banking. --> It demonstrates how decentralized solutions can scale for global businesses, creating a blueprint for future interoperability and innovation. 3️⃣ 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 --> Mastercard and J.P. Morgan’s success only helps to highlight the vast potential of collaboration in the fintech industry. --> Future partnerships might explore tokenized CBDCs, AI-driven payment insights, and expanded RTP networks, building a greater interconnected financial world. 4️⃣ 𝗪𝗵𝘆 𝗜𝘁 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 𝗳𝗼𝗿 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 & 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 --> This partnership isn’t only about infrastructure, it's about trust and transparency. --> This further signifies a shift toward efficient, secure, and scalable global payment solutions. 5️⃣ 𝗦𝗶𝗺𝗶𝗹𝗮𝗿 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀 𝗶𝗻 𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 --> Another notable collab include Visa’s work with Tink in open banking integrations --> These partnerships underscore the shared industry goal: making global transactions seamless and accessible. _____ 𝗪𝗵𝗮𝘁 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗠𝗲𝗮𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆? This partnership sets the tone for how blockchain, open banking, and cross-industry collaboration can redefine global commerce. As fintech continues to innovate, the possibilities for creating more inclusive, transparent, and efficient financial systems seem limitless. 💬 What are your thoughts on this partnership? Could this reshape the B2B payments landscape? Let’s discuss! Sources: Payments Experts, CoinJournal, Electronic Payments Int'l 🔔 Follow Jason Heister for daily #Fintech and #Payments guides, technical breakdowns, and industry insights.