How Advances in Supply Chain Technology Could Influence B2B Payments
As the consumer payments market has experienced rapid adoption of electronic payments, the B2B market has notably lagged behind with a continued reliance on paper checks and manual processes. While we are still likely years away from the B2B market fully embracing electronic payments, the recent growth and development of a number of emerging technologies and platforms focused on facilitating a more efficient and automated AP and AR experience may serve as key catalysts for expediting that transition in B2B payments. Since many of these new solutions have created value for buyers and suppliers in payment-adjacent supply chain processes, further integration with electronic payments appears to be an inevitable next step. In Figure 1, we have highlighted some of the most prominent developments in supply chain solutions.
Figure 1: Developments in Consumer Payments Supply Chain Solutions
As more and more users begin to conduct their supply chain processes on web-based platforms, including those listed in Figure 1, it may be safe to assume that payments will follow suit. What remains to be seen is exactly how payment providers will integrate their products and services with these solutions. With suppliers paying fees for service or providing discounts as part of many of these solutions, it will be especially interesting to see whether those factors have an influence on their appetite for the cost of accepting credit cards. The ability for payments providers to integrate with these technology solutions – both functionally and financially – could be a significant indicator for future electronic payment adoption in the B2B space.
For more information, please contact Patrick Gillece, Consultant, email@example.com, specializing in Commercial Payments and Bankcard Issuing.
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