APIs will revolutionise B2B payments in the next few years

By Puja Sharma

The 2022 B2B Payments Survey reveals that security, ease of use, and breadth of functionality are top priorities for North American companies.

The 2022 B2B Payments Survey, conducted by Strategic Treasurer and Bottomline, reveals that more companies are asking banks for an embedded financial experience. It’s expected that APIs will have the biggest impact on B2B payments over the next two to three years, with both larger (51%) and smaller (39%) companies identifying this as their top choice.

An embedded finance experience within ERPs is now an expectation that customers have with demand for this rocketing to 39% in 2022 from 29% in 2021. This increased interest in embedded solutions highlights the growing importance of customer convenience and open communication with their banks and financial institutions.

The annual survey, which polled 801 executives from banks and corporates globally found small and large companies agree that fraud detection/prevention (34% v. 33%) and cash flow forecasting (45% v. 39%) technologies are where they intend to invest significantly over the next 12 months.

“The B2B Payments Survey has pointed out that banks listen to the changing payments needs of their corporate customers. Over the last year, we have seen more banks offering solutions surrounding APIs, cash flow management, and cash forecasting for their customers,” said Gunita Bindra, Vice President of Product Management and Partnerships at Bottomline. “As the demand for B2C payment solutions continues to grow globally, the bar for better B2B solutions is being effectively raised. This year’s survey responses are a testament to that, with companies also paying increasing attention to ease of use for innovative payment technologies.”

Additionally, the survey revealed that more AP systems were breached in 2022. Compromised payable systems and processes increased from 7% in 2021 to 11% in 2022, with 8% of breaches connected to an insider/employee.

“Once again we see that securing information and processes in B2B payments continues to be at the top of the mind for treasury and finance practitioners. This is a rational response,” said Craig Jeffery, founder, and managing partner of Strategic Treasurer. “As technology develops and its adoption advances, strong fraud prevention, and mitigation features are necessary components of any solution aimed at easing the burdens and reducing the errors of the status quo. Manual processes and siloed controls are no longer commercially reasonable approaches. Automation is key to efficiency and security for the future of treasury payments.”

 Key Findings

• Large and small companies identified that security (66% v. 50%), ease of use (55% v. 47%), and breadth of functionality (48% v. 25%) have the highest impact on their decisions to use an innovative FinTech solution
• Around 14% of North American companies suffered one or more losses due to serious fraud attempts, with 21% of large corporations experiencing one or more losses compared to 11% of smaller businesses
• Banks that now offer B2C payment solutions have risen from 29% of respondents in 2020 to nearly half (46%) in 2022
• More AP systems were breached in 2022. Compromised payable systems and processes increased from 7% in 2021 to 11% in 2022
• APIs will have the biggest impact on B2B payments over the next two to three years