How value-added services are changing B2B payments

As we all know, B2B payments are never just payments, but a complex combination of workflows and data.

With news Thursday (July 11) that Bank of America has added a transaction search engine to its CashPro banking platform, B2B solutions that bundle value-added services are gaining ground among buyers and suppliers alike.

With everything in one place, running a business is becoming easier and easier, whether it’s B2B payments, banking, cards, embedded credit or expense management. In today’s fast-paced business world, efficiency and streamlined operations are of utmost importance.

The traditional approach to business payments was somewhat fragmented. Companies often relied on multiple platforms and providers to handle different aspects of their financial transactions. While this method worked, it was far from efficient. Each system operated in isolation, required separate management, and often resulted in disjointed processes, data discrepancies, and increased administrative burden.

But bringing multiple financial services together under one roof and providing a seamless experience for businesses is gaining traction in the market. B2B innovation is driven by the need for simplicity, efficiency and a growing demand for comprehensive financial solutions.

Read more: Buyer-supplier relationships are being redesigned in a melting pot of expediency

Is bundling the future of B2B payments?

PYMNTS Intelligence in “Accounts Payable Cycles: The Potential for AI,” a collaboration with Ottimate based on data from 60 CFOs across more than 10 industries, found that many large companies have not streamlined their AP cycles and rely on too many tools—nearly 60% of large companies use at least five different AP systems.

“Companies are dealing with so many different variations of how they handle customers that it’s become almost a full-time job for them to keep up with the different levels of complexity, from fully integrated, automated and digitized to smaller or less sophisticated customers who still require invoices by mail, checks and the like,” Matt Clark, CEO of Corcentric, told PYMNTS last summer.

And while some firms still offer accounts payable (AP) as a standalone service, there is a clear trend toward selling a comprehensive suite of payment and financial products. Having everything in one place simplifies operations. Companies no longer have to juggle multiple platforms and vendors. A single integrated solution can handle it all, saving not only time but also reducing the complexity of managing financial operations.

This is primarily because consolidated platforms enable better data integration. When all financial services are connected, data flows seamlessly between them. This integration provides a holistic view of a company’s financial health, enabling better decisions and more accurate financial reporting.

“There is a lot of chaos in payments, especially very large B2B payments that can include hundreds or thousands of invoices with hundreds of associated line item details,” Dean M. Leavitt, founder and CEO of Boost Payment Solutions, told PYMNTS last month. “Large companies on both the accounts payable and accounts receivable side are looking for ways to automate and digitize these processes while reducing their costs.”

Read more: Japan has eliminated floppy disks, but can companies do without paper checks?

A comprehensive suite of services creates a more unified user experience. Employees can easily navigate a single platform and access all the tools and features they need to perform their jobs, which can lead to increased satisfaction and productivity.

The latest PYMNTS Intelligence reports on “The Growing Technology Preferences of Main Street’s Small and Medium-Sized Enterprises (SMBs): An Engine for Growth,” a collaboration with i2c, shows that small and medium-sized enterprises (SMBs) prefer financial institutions that offer complex payment solutions with sophisticated features.

“A lot of people don’t want to buy from 30 or 40 different suppliers,” Dave Haase, president of ChemDirect, told PYMNTS in November. “They want to be able to consolidate with as few suppliers as possible.”

And many of the older, fragmented systems that B2B companies have traditionally relied on are no longer powerful and don’t deliver much. The global business landscape is now entering the second quarter of the 21st century. The PYMNTS Intelligence report, “Getting Paid: Digital Payments for Improving Cash Flow and Customer Experience,” found that 79% of B2B suppliers want to receive digital payments, including wire transfers, ACH and virtual cards. Faster payment processing isn’t the only incentive, as 76% of companies believe buyers are more likely to pay on time when paying electronically.

At the same time, PYMNTS Intelligence found in “The Treasurer’s Guide to AR Payment Optimization,” a collaboration between PYMNTS Intelligence and CheckAlt, that 40% of all B2B payments in the U.S. are still made by check.