There is a multi-trillion dollar opportunity to rewrite B2B strategy, and it starts with two words: embedded finance.
The consumer payments buzzword is steadily moving into the B2B space and is starting to drive real change for buyers and suppliers across sectors by integrating payment processing and lending functions directly into non-financial applications and platforms. .
From streamlining payments to giving small and medium-sized businesses (SMBs) access to financing directly within their enterprise resource planning (ERP) systems, embedded finance simplifies everything from procurement to cash flow and provides a seamless, intuitive payments experience. We will contribute to the realization of
Ultimately, embedded finance for B2B promises businesses fast, frictionless payments built into their workflows without the need for scary detours to unwieldy external portals.
Embedded finance is emerging as a transformative force in B2B commerce as businesses seek more efficient ways to manage payments and working capital.
Related article: Click, pay, complete: How embedded payments are transforming B2B
Opportunities for B2B embedded financial innovation
Businesses are tired of outdated payment cycles and unpredictable working capital. Built-in finance allows you to manage cash flow, secure financing, and coordinate payments in real-time, all within your everyday platform.
Embedded finance brings critical financial services directly into business platforms, delivering a streamlined and intuitive payments experience that fits naturally into daily operations. For B2B companies, this is more than an incremental improvement. Embedded finance is reimagining how businesses manage payments, working capital, and cash flow, adding agility and resilience to financial processes.
This transformation reflects a broader trend in B2B: the need for seamless, efficient, and flexible financial solutions that support digital and global businesses. Embedded finance allows companies to integrate financial activities such as billing, payment processing, and lending into the platforms they already use to manage inventory, sales, and supply chains, creating a range of strategic benefits. I did.
“We bring payments functionality into business software platforms, whether it’s accounts payable, accounts receivable, vertical SaaS, or (ERP) systems,” said Daniel, head of fintech partnerships at Boost Payment Solutions. Artin told PYMNTS this month.
“Research shows that today’s embedded B2B payments volume is approximately $2.5 trillion and is expected to grow from $6.5 trillion to more than $7 trillion within the next few years,” Artin added.
See: Embedded Finance Helps Corporate Buyers Bring Commerce Online
Overcoming the challenges of traditional B2B payments
Manual reconciliation is a pain point in B2B transactions. Tracking payments across systems often introduces errors and duplication, which inevitably leads to delays in invoice settlement. Embedded finance automates much of this reconciliation process by directly linking payments to invoices and other transaction data within the same platform. This automation reduces errors and speeds reconciliation so finance teams can close the books faster and with confidence.
WEX Chief Digital Officer Karen Stroup told PYMNTS this month that these long-standing inefficiencies are a large part of why the B2B sector is where the real value and innovation in embedded finance can blossom. he said.
“At the end of the day, payments and financial products are often a means to an end,” Stroup said. “When there are friction points in a business, that’s where it falls down.” added.
This month alone, Mastercard announced the introduction of new embedded payment technology for the freight, shipping and logistics sectors. Earlier this year, PYMNTS spoke with Jennifer Marriner, Executive Vice President of Global Acceptance Solutions at Mastercard, about the rise of embedded payments.
“It’s really important to embed[payments and financial products]throughout the value chain and into every experience a customer has in a commercial environment,” she said.
Embedded finance offers an alternative to traditional financial systems by streamlining processes, enhancing working capital management, and reducing manual labor. As more businesses realize these benefits, they are adopting embedded finance to stay competitive, efficient, and agile.
“The way companies make payment decisions is almost entirely embedded in their procurement processes,” Dean M. Leavitt, founder and CEO of Boost Payment Solutions, told PYMNTS in July. told.
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Learn more: automation, B2B, B2B payments, boosted payment solutions, cash flow management, commercial payments, Daniel Artin, Dean M. Leavitt, embedded finance, bill payments, Jennifer Marriner, Karen Stroup, logistics, MasterCard, news, PYMNTS News, SMEs, WEX, working capital
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