Today in B2B payments, a PYMNTS report projects four out of five B2B transactions will be digital by 2025, and Ocrolus improves credit scoring for SMBs. Plus, mid-sized companies need more capital to digitize their accounts receivable processes, Veem teams with REPAY on B2B payments and Plastiq jumps in on B2B payments disruption.
Some 93% of mid-sized companies, firms generating $25 million to $100 million annually, consider accounts receivable (AR) and accounts payable (AP) digitization to be mostly about transformation, according to PYMNTS’ The Strategic Role Of The CFO Playbook.
Despite their desire to transform, though, 60% of mid-sized companies lack the IT resources to digitize their AR and AP systems, according to the PYMNTS study.
There’s never been a data capture technology that could analyze financial documents of any format or quality with perfect accuracy, Ocrolus CEO and Co-founder Sam Bobley told PYMNTS’ Karen Webster. Low-quality images and thousands of different document formats make the problem even worse.
Ocrolus has used its data capturing tool to solve another problem: making better credit decisions by analyzing an array of small business documents and automating small and medium-sized business (SMB) lending using its new Cash flow-informed Credit (CfiC) scoring program.
Business growth is being “driven by the re-platforming of commerce,” Plastiq Chief Product and Technology Officer Stoyan Kenderov told PYMNTS. Throughout the pandemic, things were accelerated, and small businesses started moving to digital experiences and becoming eCommerce businesses in the wake of the COVID-19 pandemic.
Credit cards enabled eCommerce to start online but 85% of suppliers don’t accept them. The cost of acceptance is high, even though the cards offer convenience, credit and a host of rebates and rewards for the buyer — and the promise of immediate payment for products or services to the supplier.
PYMNTS’ Enabling B2B Payments For The Virtual Workforce study projects that up to 80% of all buyer-supplier transactions could be done digitally by 2025.
That means mobile and contactless payment options, especially virtual cards, will likely reshape the corporate payments ecosystem, a phenomenon rooted in the efficiencies and spend management capabilities of B2B transactions.
Payments companies REPAY and Veem are teaming up to enhance their B2B payment capabilities in a deal announced Thursday (Sept. 23) that will see REPAY expand its cross-border payment delivery options and Veem use REPAY’s B2B virtual card and acquiring technologies to expand its own capabilities.
REPAY also became a minority investor in Veem to support the company’s growth.