The Shifting Paradigm of B2B Payments: Lessons from Visa

Cross River

December 1, 2023

2 min read

In a recent webinar, Cross River’s Head of BaaS & Cards, Anthony Peculic, alongside Visa’s SVP & Head of Visa Commercial Solutions, Veronica Fernandez engaged in an insightful discussion about the evolving landscape of B2B payments. Watch this video for all the highlights from their recent conversation.

The conversation on ‘consumerization’ of B2B payments emphasized strategic shifts in payments with a focus on how the sector is adapting to a digital and consumer-oriented age, including:

  1. Reflections on Money20/20: There's a significant focus on digitalization and compliance tech, with financial institutions modernizing their tech stacks to keep pace with fintech innovations and consumer expectations.

  2. Shift in payment methods: The persistence of checks in the payment ecosystem indicates a big opportunity for innovation and digitization. In the US alone in 2021, payments by paper checks comprised 2.9 billion B2B checks for an estimated $11 trillion, demonstrating the vast opportunities that exist for digitizing transactions.

  3. Demographic changes in finance roles: Millenial CFOs and treasurers are influencing the demand for seamless, tech-driven financial experiences akin to consumer apps like DoorDash and Uber. There is also a growing interest in innovative solutions for working capital management and treasury innovation.

  4. Challenges for small businesses: Despite the importance of small businesses to the economy, there's still a lack of comprehensive solutions for their payment and financial management needs.

  5. Cross-border payments and economic outlook: Anthony and Veronica’s discussion highlighted the increasing importance of cross-border payments that is expected to be more streamlined, efficient and driven by advancements in digital technology.

  6. Potential of AI and automation: AI-driven automation is seen as a critical tool for future growth in both consumer and commercial sectors.

  7. Embedded finance trends: Non-traditional finance companies, like Uber and Apple, continue to enter the payments space, leveraging technologies like virtual cards.

  8. Tokenization and payment innovation: The concept of tokenization, where various objects (like cars or biometrics) become payment devices, is gaining traction.

  9. Visa's strategic shifts: Visa is focusing on being a 'network of networks', emphasizing interoperability, partnerships, and integration with fintech solutions.

  10. Small-medium business focus: The resilience and optimistic outlook for small businesses was highlighted, along with their need for better access to credit, payment solutions, and financial management tools.

  11. Future of B2B payments: Expect to see better solutions for payment acceptance, increased digital transaction methods, and advancements in AI and sustainability in business operations.

 Watch the full recording of the Cross River x Visa webinar here.