Today in B2B payments, businesses in the United States and United Kingdom consider cross-border payments technology, while Fingerprint Cards and Transcorp bring a contactless biometric card to India. Plus, education and embedded finance help businesses modernize their B2B payments, digital innovations make B2B buyer-supplier relationships better, and IndiaMART teams up with Tazapay to help exporters with cross-border payments.
Half or more of the U.S. and U.K. businesses that are planning cross-border payments innovations expect them to yield three primary benefits: reduced costs, improved cash management and reduced fraud. While U.S. businesses are more likely to expect improved cash management, and U.K. businesses are more likely to expect reduced costs, a nearly equal share of the companies interviewed in both countries expect reduced fraud.
Swedish biometrics company Fingerprint Cards AB has teamed up with financial services firm Transcorp to bring biometric technology to India. The collaboration will target India’s 940 million cardholders and marks the country’s first contactless biometric authenticated card. The cards will be launched featuring Fingerprint’s T-shaped module, designed to be integrated with biometric payment cards through standard automated manufacturing processes.
In the B2B realm, paper checks are still stubbornly entrenched in the payments landscape. Roughly 50% of overall B2B payments come through checks. More than two-thirds of firms generating between $100 million to $500 million in annual sales saw payments delayed. And 80% of companies that have annual sales of $25 million to $100 million lack the resources needed to digitize their accounts receivable (AR) and accounts payable (AP) systems. There are several trends converging to lift B2B transactions more fully into the digital age.
Before the pandemic, businesses may not have viewed digital or automated payment methods as a necessity. Trina Dutta, vice president and general manager, B2B payments automation, global commercial services at American Express, told PYMNTS in an interview that the pandemic has underscored the need for greater process and operational efficiencies. The pivot toward work from home has changed B2B payments dramatically. Many business owners and chief financial officers (CFOs) have been approaching providers — American Express among them — to help make their AP departments fully virtual.
B2B marketplace IndiaMART and payment platform Tazapay are joining forces to give exporters in India an easier solution for cross-border transactions. Their partnership will help B2B exporters gain access to important economic markets, such as Southeast Asia, the United States, the United Kingdom and the European Union. In addition to getting access to payment methods like local bank transfers, credit cards and QR code payments, merchants will also get the chance to deal with international clients “like a local while enjoying competitive platform fees, and the best [foreign exchange (FX)] rates,” according to a press release.