Stay connected
Subscribe to our corporate payments blog to stay on top of payment innovations.
"*" indicates required fields
Payments
Modernizing B2B payments: Digital payments, software, and data
According to Fortune, the B2B payments market is projected to grow from $79.53 trillion in 2023 to $174.38 trillion by 2030 – a CAGR of 11.9%. The North American market alone accounted for $29.22 trillion in 2022. As the B2B payments market grows in tandem with the digital age, the need for simple solutions is important for delivering efficiency and helping businesses grow.
Jay Dearborn, Chief Operating Officer, International at WEX, recently sat down with Karen Webster, CEO of PYMNTS, for an in depth conversation on payments modernization, which involves making payments faster, more secure, and more efficient by using digital methods. According to Jay, a holistic approach incorporating payments, software, and data is essential to simplifying business transactions.
Payments modernization: How do we achieve it?
Modern payment systems ensure security, efficiency, and have the ability to integrate with other business processes.
“When I think about modernization, I’m always trying to think about our largest customers and our smallest customers. What are the use cases that payments will help them unlock, creating more ease in the way that they do their business?”
For WEX, modernized payments mean:
- Leveraging digital solutions: The transition from manual to digital payment methods have allowed businesses to leverage online payment platforms for transactions, giving them more flexibility.
- Combined data analytics: Data is an essential to business decision-making. Gain insights into payment trends, customer behaviors, and use that information to optimize cash flows.
- User-friendly software: Integrating payment systems into a unified, secure, and easy-to-use software is the key to introducing modern payment solutions to businesses. WEX offers a customized, cloud-based payment processing solution that ensures secure, simplified processing of business payments worldwide.
Mobile-friendly solutions
Phones are an integral part of everyday life, connecting us to each other and the world around us. One important innovation lies in enabling businesses to manage transactions via their mobile devices. The level of convenience and accessibility is unparalleled.
“What we’re trying to do is bring the way that they manage their business into a phone and help that WEX customer invoice and manage their own customers and collect payments.”
By combining functions into a mobile platform, businesses can handle invoicing, payments, and customer management on the go. A mobile-centric approach mirrors consumer behavior and offers greater flexibility for businesses, especially ones in the fleet industry where employees and customers may be scattered.
Enhancing security and efficiency
Modernizing B2B payments also involves securing transactions. WEX has developed AI-driven fraud detection tools and chatbots to enhance security and elevate the customer experience.
“I’m excited about artificial intelligence, both in terms of what I’m seeing in our ecosystem as well as the future possibilities”
AI offers a new world of opportunities to streamline business processes and give businesses more time to focus on running their business.
In fact, McKinsey researchers conducted extensive studies on the effectiveness of AI in the workplace in 2023. They found that generative AI can save 60%-70% of an employee’s time by automating routine work tasks. They also found that approximately 75% of the value that generative AI delivers comes from customer operations, marketing and sales, software engineering, and R&D.
Payments and data synergies
WEX’s recent acquisition of Payzer – a field service management solutions provider – showcases the practical application of integrating digital payments and data. The software, available on desktop and mobile, is used by small businesses in HVAC, plumbing, and roofing. It helps manage important tasks such as scheduling, dispatching, customer communications, invoicing, sales proposals, supply ordering, and maintenance agreements. This synergy between WEX and Payzer’s solutions simplifies small business management with an operating system that unifies payments and data.
Similarly, in the electric vehicle sector, WEX’s solutions help manage fleet vehicles and streamline payments for charging. WEX EV At-Home and En Route are recent additions to WEX’s EV solutions. They help manage the process of vehicle charging from anywhere, whether on the road or at home. Those transactions get consolidated into one report and one payment scheme.
Looking ahead
The future of B2B digital payments lies in the continuous improvement of technology. Advancements in data analytics and technologies such as AI and automation, have transformed business workflows. Currently, AI and machine learning are playing a significant role in predicting market trends. AI also helps in optimizing supply chains and creating personalized customer experiences.
As B2B industries embrace these changes, we can expect greater value added to solutions that combine payments, data, and software, eliminating some of the complexities that come with managing business transactions.
“Payments themselves are just the movement of money. The question is how do you put payments inside great software that’s easy to use.”
For more insights and updates on corporate payments, check out:
- Your guide to virtual card rebates
- Current trends in finance
- Accounts payables: Terms you need to know
Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.