In recent years, business to business (B2B) payments have soared in popularity. These have become to go-to replacement for cash and cheque transactions, and some of the most popular providers have become household names. Think PayPal, Google Pay, and credit cards, which fall into the B2B payments category.
With so many of us using B2B payments now, it’s perhaps unsurprising that the market is estimated to be worth $63 billion by 2026. So, what’s in store for B2B finances in 2021? What are the top trends that will impact on this growing financial market?
Introduction of AI
Artificial intelligence (AI) will play a big role in the future of B2B finances. AI and machine learning tech are there to help remove the issues caused by human error, as well as make processes more efficient. By using advanced technologies to process payments, payments can be quickly analysed and transactions easily and seamlessly carried out.
Another reason to introduce AI is to make payments more secure. AI can be programmed to automatically detect fraudulent transactions and flag any suspicious payments that could be linked to cybercrime.
As technology continues to evolve, AI and machine learning will be further integrated into B2B finances.
Go virtual
Instead of using physical payment cards, virtual prepaid cards exist online are linked to a secure prepaid account. A set amount of cash is loaded up onto the card and you can’t spend more than the amount that’s on there. This makes it a secure means of managing money and means cybercriminals can’t access more than the amount that’s there on the card.
This is a significant addition to the world of B2B finances and is set to become increasingly popular in the years to come.
The rise of blockchain and cryptocurrency
Cryptocurrency has become increasingly popular in the last decade. With reports that it could replace traditional assets such as gold due to the security it offers, it’s a perfect fit for B2B transactions.
Blockchain and cryptocurrencies go hand in hand. Blockchain is a record-keeping network that links bitcoin and other types of cryptocurrency. It’s a public digital database that stores information about this virtual currency and it has the potential to replace traditional exchanges. It’s still in the testing stage, but it’s predicted that more B2B transactions will use blockchain and crypto to process payments.
So, where does blockchain and cryptocurrency fit into the world of B2B finance? First, due to its secure nature, blockchain can help with fraud reduction. However, it also helps to reduce paperwork, creates a smoother processing service, and payments are clear.
Ultimately, B2B finances are a more secure, fuss-free means of making payments. As we spend more online, these types of payment options are set to become the main way to buy goods and services.
