Back Office Takes Front Row as Firms Automate B2B Payments

Unlike consumer payments, where streamlined experiences reign supreme, business-to-business (B2B) transactions are fragmented and slow-moving.

But companies like Finexio are stepping up to transform this complexity with integrated, artificial intelligence (AI)-powered solutions that drive efficiency and reduce costs.

As digital transformation becomes vital, many businesses remain stuck grappling with outdated systems, fragmented processes and a dizzying array of payment options that create inefficiencies, drain resources and strain relationships.

“At least half of B2B payments are still paper-based, particularly checks, and that creates multiple pain points,” Finexio Chief Strategy Officer Chris Wyatt told PYMNTS during a discussion for the “What’s Next in Payments” series, “Business Simplicity: The New KPI.”

These transactions represent not only operational burdens but also fraud risks.

According to Wyatt, accounts payable (AP) teams spend up to a quarter of their time managing paper-based transactions, a task that costs between $8 and $10 per check. The inefficiencies compound further, as these manual processes create visibility gaps that hinder cash flow management.

“Checks aren’t great,” Wyatt said. “When AP teams are dealing with checks, they’re losing efficiency and facing heightened fraud risk.” As noted by the U.S. Postal Service’s own advisories against mailing checks, the exposure to potential fraud only adds to the complexity and underscores the need for digital solutions.

Ultimately, Wyatt said, companies don’t just want to digitize payments — they want a seamless, all-encompassing solution that simplifies the entire AP process.

Payments-as-a-Service Reshapes Operations

For most companies, B2B payments encompass much more than merely the money being transferred. The complexity inherent to commercial payments is due to the fact that the workflows and data surrounding the payments are often a web of interconnected processes that extend well beyond just transferring funds.

“These aren’t isolated problems. Everything is interconnected, and the inefficiency of manual processes all compound,” Wyatt said.

This interconnectedness is precisely what Finexio’s Accounts Payable Payments-as-a-Service model is designed to address. By taking on the complexity of payment workflows, Finexio enables businesses to optimize payments while maintaining their existing infrastructure.

This managed service includes full lifecycle management of payments, reconciliation and fraud mitigation, Wyatt said, so AP teams can focus on their core operations without the burden of payment logistics. Rather than requiring businesses to overhaul their systems, Finexio integrates its platform into clients’ existing infrastructure to facilitate a comprehensive payment solution.

“We handle the complexity of payment optimization,” Wyatt said. “By using AI and machine learning, our platform adapts to each client’s unique needs, making decisions such as converting a supplier from a check to an ACH or virtual card.”  This AI-driven approach improves efficiency and enhances security, reducing fraud risk while addressing supplier preferences.

Simplicity Is the New KPI

Digital transformation in B2B payments is more than just an end goal; it’s a means to drive meaningful business outcomes.

“Our clients aren’t necessarily viewing this as a digital transformation initiative,” Wyatt said. “They see it as a strategic shift to turn AP from a cost center into a revenue generator.”

One example of this strategic value lies in Finexio’s use of virtual cards. These digital payment methods not only eliminate the inefficiencies of paper checks but also create new revenue streams by providing cashback opportunities. The solution is part of a larger business transformation, helping clients approach B2B payments holistically.

By automating the payment process, businesses can shorten their payment cycles, a key factor in maintaining healthy vendor relationships. Late payments — often a byproduct of inefficient systems — can strain partnerships and lead to supply chain disruptions.

The level of visibility digital solutions provide also simplifies insights into cash flow, outstanding invoices and payment trends, something crucial for CFOs and treasurers. In industries like manufacturing and retail, where margins are tight and supplier relationships are critical, such tools can transform B2B payments from a liability into a strategic asset.

Looking forward, Wyatt emphasized two core areas for Finexio: supplier enablement and security. By harnessing AI to better understand supplier preferences, Finexio achieves high success rates in transitioning suppliers from checks to digital payment methods. The goal, Wyatt said, is to reduce check volume and facilitate smoother, quicker payments. This supplier-enablement strategy drives efficiency and strengthens vendor relationships by aligning payment methods with supplier needs.

With a focus on simplifying payment operations and reducing fraud risk, Finexio is  addressing today’s challenges and paving the way for a smarter, more resilient future in B2B payments.