PAYMENT-PREVIEW:

Three B2B payment solutions for 2023

As Though the challenges of 2022 have already had an impact on business payments, there’s a significant silver lining. One of the biggest hurdles to alternative payments adoption is the persistent reliance on outdated infrastructure and a resistance to digitisation. As has already been the case with the pandemic, the challenges we’re facing now are likely to drive innovation, push traditional institutions and companies to modernise, and create new opportunities for payment solutions in 2023. Here are some fast-growing solutions we’re looking at in the coming year.

QR codes

Covid-19 triggered a major change in how consumers see and use QR codes. As restaurants, bars, and a host of other businesses turned to this convenient, contactless solution to ensure people’s safety, pointing our phones at a small black-and-white square became second nature. As we move into 2023, there’s now an interesting opportunity for account-to-account payments providers to make the most of this shift in behaviour. With WeChat and Alipay already having enjoyed massive success in China, there’s potential for companies to use QR codes to accept Open Banking payments in Europe. Since QR codes can be displayed digitally, on tablets, or physically printed, this may prove to be a versatile solution for triggering A2A payments in the future, bridging the gap between the virtual and physical worlds for both B2C and B2B transactions.

Virtual credit cards

Virtual cards are temporary credit cards that can be used to trigger online transactions through tokenization technology—turning sensitive data into a unique identifier. Because they’re not linked directly to a main company bank account, but to a wallet, they don’t put information at risk, and they’re already increasingly popular among businesses. In fact, the global value of virtual card transactions is projected to reach $6.2 trillion in 2026, increasing 370% over the next 4 years, and the vast majority of that will be from business transactions.⁵That’s because virtual cards are cheaper than paper checks, help businesses control their spending, integrate well with accounts payable software, and offer improved security.

A2A payments

As of 2021, A2A payments account for 13% of all checkouts in Europe, and they’ve seen significant growth in the B2B sector as well. In fact, A2A payments are arguably even more advantageous for businesses than they are for consumers. </br> Here’s why:

• Low transaction costs
  Because card networks and other providers charge percentage-based fees for transactions, businesses making and receiving regular payments can incur unnecessary additional costs. By paying directly from a bank account, these charges are a thing of the past.
• Instant Settlements
  Businesses live and die by their available working capital. With A2A payments, the money paid from a bank account doesn’t need to travel through redundant intermediaries, meaning instantaneous transfers, and healthy cash flow.
• Security
  Because A2A payments in Europe are governed by PSD2 legislation, they include a raft of measures to ensure safe, reliable translations. Easy access to data and strong authentication mean credit checks and other measures can be automated, and the risk of fraud is significantly lowered.