Fintech: Southeast News

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Posted November 11, 2021

 

By 2025, 30% to 50% of B2B payments will not only be done digitally, they’ll also be done in real time.

FIS Senior Vice President of Digital Payments Ginny Chappell made the bold prediction to Karen Webster in an interview, noting that B2B payments are, digitally speaking, “catching up” to other types of transactions.

She pointed to the fact that peer-to-peer (P2P) payments have been growing dramatically, spurring more B2C real-time payments — and in turn, providing a tailwind for B2B.

The awareness of the benefits real time could give to B2B payments, chiefly in the form of enhanced cash flows, is incentivizing firms to commit more fully to payments modernization.

Chappell said chief financial officers (CFOs) and treasurers are actively investing — or are readying to invest — in real-time payments solutions, with an eye toward embedding real-time functionality in their payments flows.

Corporate executives are considering how real-time payments can positively impact liquidity and cash flows. Real-time payments can cement one of the critical ingredients of the financial system and the interactions between buyers and suppliers, she added.

Knowing that a transaction will settle in seconds rather than days can boost confidence in the B2B relationship, and with vendors and partners. Executives are also freed up to pursue other, more strategic initiatives within their firms, as digital payments carry more robust data payloads (through the messaging standard ISO 20022) and reconciliations can be done more easily.

 

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