This Week in B2B: Unlocking Working Capital With Cards and Automation

It’s the dawn of a new era in B2B. New technologies are simplifying workflows, streamlining buyer-supplier transactions, and improving transparency — and the technical lift it takes to integrate them is getting smaller.

In the global rush to digitize, many business-to-business (B2B) companies are realizing that holding onto old processes is like driving a horse-drawn carriage on the freeway.

This shift is reflected in the top themes shaping B2B that PYMNTS tracked this week, which were marked by growing adoption of cards for B2B payments, embedded solutions, and big transformations for small businesses.

Starring Role of Cards

With the news Tuesday (Oct. 1) that American Express teamed with Boost Payment Solutions to provide commercial virtual card processing services, buyers and suppliers in the B2B space are waking up to a new reality. Virtual cards are no longer just a fancy alternative for making payments around travel and entertainment; they’re becoming a cost-effective necessity for many transactions.

On Thursday (Oct. 3), PYMNTS explained why there exists a renewed approach to supplier enablement aimed at dispelling long-standing misperceptions around card acceptance. In particular, dispelling the idea that virtual cards are too costly or cumbersome.

Meanwhile, FinTech firms are joining forces to push the boundaries of virtual cards. Danish FinTech Cardlay is working with Visa to improve spend management for commercial card issuers, it was announced Wednesday (Oct. 2).

And in related news, Bank of America also on Tuesday announced the expansion of its virtual card offering in Europe, the Middle East and Africa (EMEA) with the debut of Virtual Payables Direct.

Read more: 3 Reasons B2B Payments Data Is So Valuable

Embedded Finance, Automation

Other innovations are shaping B2B payments, including embedded finance and automation.

According to a Thursday announcement, HSBC has launched an embedded finance venture aimed at its business clients. SemFi is a joint venture between HSBC and B2B global trade network Tradeshift, designed to embed HSBC payment, trade and financing solutions across a variety of eCommerce and marketplace venues, including Tradeshift’s network.

Corpay on Tuesday announced a cross-border payments partnership with foreign exchange (FX) marketplace AbbeyCross. The collaboration is designed to provide FX payment services to emerging markets via the new AbbeyCross ABX platform.

Making cross-border payments can be a challenge, as PYMNTS noted earlier this year, so much so that American merchants suffered at least $3.8 billion in lost revenue in 2023 from failed cross-border payments.

Elsewhere, it was announced Tuesday that Settle, an operations platform for consumer packaged goods (CPG) brands, acquired enterprise resource planning (ERP) firm Turbine. The Settle platform is designed to provide a comprehensive view of cash flow. At the heart of the Settle CPG suite is accounts payable automation.

On Tuesday, PYMNTS explained that one of the advantages of automating B2B payments is the ability to integrate fraud detection tools, noting that automated systems can flag suspicious activity, monitor transactions in real time, and detect anomalies that human operators might overlook. 

“Fraud is growing as fast, or faster, than the pace that the overall B2B market is growing, so we have to fight hard to implement tools and stay ahead of it,” Eric Frankovic, general manager of business payments at WEX, told PYMNTS in an interview posted Monday (Sept. 30), adding that the scale and complexity of B2B transactions create opportunities for fraudsters.

Solving for Pain Points

These innovation are being tailored to smaller businesses — even ones coming from the federal government. The White House said it has made it easier for small businesses to refinance debt. The Small Business Administration (SBA) announced a rule change Tuesday to its 504 Loan Program, which offers long-term, fixed-rate financing for real estate and equipment with SBA-backed capital.

“Eighty percent of small business owners say that having world-class digital capabilities is extremely important and, frankly, expected from their bank,” Adam Hughes, CEO of Amount, told PYMNTS in a conversation posted Monday, noting that when small businesses start looking for the right lending experience, digital is “table stakes at this point.”

Amazon Business, the branch of Amazon that offers businesses wholesale and procurement solutions, is rolling out Business Prime Rewards. The program is exclusive to Business Prime members and allows them to earn up to $1,000 a year on eligible expenses via Amazon Business, the eCommerce giant said on Wednesday.

Meanwhile, tax compliance company Sovos unveiled its indirect tax suite for SAP on Tuesday, announcing the “first of its kind” solution for indirect tax determination, electronic invoicing, filing and reporting that works in any SAP environment.

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