Digital Payments: Redefining B2B Payments in Mid-Sized Businesses

1.1 Sign of the Times: The Need for Digital Payments in Mid-Sized Businesses

Cash plays a crucial role in the survival of any business and the ongoing global crisis has prompted businesses to re-evaluate their payment processes to deal with cash flow issues. Late payments coupled with delayed processing for traditional methods of payment such as cash and checks adds on to the struggle of preserving cash. For many mid-sized businesses, paper-checks are still relevant but it comes with a steep price to pay. The major concern is the manual processing time as they take a long time to reflect on the open A/R on top of being error and fraud-prone.

Digital payment methods have emerged to address these pain points by streamlining payment processing with added benefits such as real-time payment, better visibility, compliance, fraud protection, and improved cash flow.

According to a study by Mastercard of SMEs spread across North America, 76 percent of businesses say that the pandemic has pushed them to become digitally equipped

When it comes down to the question of survival, cash flow is oxygen for businesses. Having better visibility and getting paid faster with lower transaction fees are critical for finance executives. Real-time payment methods can accelerate cash flow while avoiding the high cost of manually processing traditional paper-based checks. Owing to digitalized payment methods, the faster payment cycle would result in positive cash flow.