B2B payments are huge. Taken together, these supply chain payments exceed the gross domestic product. But supply chain payments remain an imperfect art. While consumers pay for one purchase at a time, a B2B payment may cover multiple invoices, each with different commercial terms. Given the amount of data about the payment that’s necessary to crisply communicate between a buyer’s accounts payable department and a seller’s receivables group, it’s no wonder paper checks are still in broad use.
While B2B payments have been resistant to “electronification,” the cloud, the mobile user interface, a new data standard (ISO 20022), and APIs into banks and payment schemes are enabling a renewed effort to streamline B2B payment transactions. B2B payments are hot.
- How B2B payments are different from consumer payments
- Why B2B is “hot” once again
- What market forces are pushing B2B forward
- Why Faster Payments in the U.S. and around the world could have a major impact on supply chain payments