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August 04.2025
2 Minutes Read

How Outdated B2B Payments Impact Margins and What You Can Do

B2B payments transformation discussion in virtual interview setting.

Revolutionizing B2B Payments: Why Outdated Methods Are Unsustainable

In the fast-paced world of B2B transactions, outdated payment methods are quietly draining profit margins. With nearly 40% of B2B payments in the United States still made via paper checks, the traditional methods of transferring funds remain entrenched in the industry, but at what cost? While consumer payments get a makeover with tap-to-pay solutions and instant transactions, B2B payments are lagging behind—stuck in a time warp that’s detrimental to financial health.

The Hidden Costs of B2B Payment Complexity

B2B payments are not merely exchanges of currency; they entail complex interactions between two distinct systems. As Murray Sharp, EVP at Nuvei, puts it, "When you start talking about added costs in B2B payments, you open up a can of worms." This complexity—the "soft costs" associated with things like reconciliation, fraud risk, and workflow inefficiencies—often surpasses the nominal hard costs associated with legacy systems, like ACH often touted for being "free." But, free comes at a price, especially when hidden manual labor costs add up during payment reconciliations.

Why Digital Transformation is Imperative

The B2B landscape is changing. To survive and thrive, businesses must replace outdated practices with intelligent digital systems that create seamless workflows. Digital embedded payment experiences that directly connect to enterprise resource planning (ERP) systems are becoming paramount. They not only improve efficiency but also mitigate the risks tied to outdated processes.

The Shift Towards Digital Intelligence

While checks remain popular due to their simplicity and universal acceptance, the next decade is expected to shift towards digital solutions that offer the same level of simplicity but with enhanced intelligence. This paradigm shift will not only streamline processes but also lead to better data exchange, which is crucial for optimizing cash flow and leveraging real-time insights into financial operations.

Future Trends in B2B Payments: What to Expect

As we look ahead, the trends in B2B payments point towards greater integration of fintech solutions that prioritize digital currency options and more sophisticated payment verification systems. This move is vital for modern businesses aiming to scale operations effectively. Platforms that incorporate blockchain technology and crypto-friendliness are on the rise, providing a layer of security and transparency that traditional systems can't offer.

Conclusion: Time to Adapt or Get Left Behind

Are outdated B2B payment methods quietly killing your margins? Yes. The time has come for businesses to reflect on their payment processes. As technology continues to evolve, staying stagnant is no longer an option. Embrace the digital shift, explore innovative fintech solutions, and ensure your business remains competitive in an increasingly complex market.

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