Are you making the most of your B2B payment data?

If you work in finance, you know that payments are more than just moving money from one place to another. Every transaction generates data. Data can help you make better decisions, reduce risk, and improve operational efficiency. But, are you actually using that data to its fullest potential?

Too often, businesses focus on processing payments as quickly as possible without looking at the insights those transactions can provide. The right data can help you solve gaps in your business or even identify opportunities you may not be aware of.

So, what does it mean to truly make the most out of your B2B payment data? Let’s break it down.

Why your payment data matters more than you think

Think about how much effort goes into making a single payment. There are invoices to process, approvals to secure, and reconciliations to complete. Every step generates data, from who you’re paying, when, and how the payment is made. If you’re not analyzing the data, you’re missing out on an opportunity to improve your process and your bottom line.

Here’s what your payment data can reveal:

• Spending patterns: Are you consistently paying certain suppliers late? Are you missing out on early payment discounts?
• Cash flow trends: Is there a predictable cycle to your outgoing payments that you could better plan for?
• Fraud and risk insights: Are there irregularities in your payment data that could signal fraud?
• Supplier relationships: Are your suppliers experiencing payment issues that could affect your business?

How to use payment data for smarter financial decision making

How do you go from simply processing payments to using that data to drive better decisions? It starts with having the right tools in place.

1.  Automate your accounts payable process

Manually processing payments makes it harder to track spending trends and spot inefficiencies. AP automation centralizes your payment data, giving you greater visibility into where your money is going. It also reduces the chance of human error, speeds up approvals, and improves reconciliation.

2.  Consider switching to virtual cards for better tracking and control

If your company is still relying on checks or traditional payment methods, you might not have as much visibility into spending as you think. Virtual cards provide transaction-level data, allowing you to see exactly where payments are going.

With single-use or limited-use virtual cards, you generate unique card numbers to specific transactions. This not only reinforces security, but also makes it easier to track expenses.

3. Optimize your cash flow with better payment timing

Your payment data can help you determine the best times to pay suppliers to maximize cash flow. For example, analyzing past payments might reveal that delaying payments (while still staying within agreed upon terms) might give your company a healthier cash buffer. 

Alternatively, you might find that taking advantage of early payments could get you discounts with your suppliers, saving your business money in the long run.

4. Better fraud detection and security

Fraud is an ever-present risk in business payments, but data can be the key to identifying the red flags. Unusual transaction patterns, duplicate payments, and payments to unapproved vendors can all be detected through data analysis.

Plus, with detailed transaction data, financial audits and compliance reporting become much easier.

5. Strengthen your supplier relationships with data driven insights

Payment mismanagement can strain your relationships with suppliers, but having access to reliable payment data can help you stay ahead of the potential issues. 

By analyzing your payment history, you can identify trends like frequent late payments or processing bottlenecks. Addressing these issues proactively can improve trust with your suppliers, possibly leading to better terms or increased flexibility when you need it.

Turning data into action

Having access to payment data is one thing – using it effectively is another. Here are some steps to help you get started:

1.  Assess your current payment process: Determine how you are tracking your payments and any challenges you may be facing. Identifying those gaps is the first step.

2.  Implement the right tools: Consider switching to a business payment solution that would work best for you. Solutions that include AP automation and more modern payment methods, such as virtual cards, may help with centralizing and analyzing your payment data. 

3. Regularly review your data: Make it a habit to look at your payment trends on a monthly or quarterly basis to spot opportunities for improvement.

4.  Take action based on insights: Whether it’s about adjusting payment timing, strengthening fraud controls, or working on your supplier relationships, use your data to make the most informed decisions.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

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.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.