In today’s digital world, the need for business payments to resemble the seamless, frictionless payments experience in the world of B2C is becoming all the more important.
Perhaps more crucially, businesses want to focus on their core operations and customers without constantly worrying about managing payments and finances. Embedded finance is a tool that many businesses are leveraging through fintech partnerships to achieve these aims. So, how does it work, and why is embedded finance a game-changer for B2B payments?
Embedded Finance: A Game-Changing Opportunity for B2B Payments
To answer the question, FinTech Magazine was joined by Chad Wallace, EVP of Commercial Solutions at Mastercard, who addressed some of the issues businesses currently face when it comes to B2B payments.
For Wallace, the current issue many business owners face is managing the relationship between their bank and the accounting platform they use. “The integration between these tends to be difficult,” he explains.
“The question for businesses becomes how they are going to pay bills in two separate applications. But it doesn’t necessarily need to be that way.”
Wallace continues: “If SMEs run through this type of issue on a regular basis, complexity just gets harder and harder. Many corporates today use a treasury management or ERP system, and reconcile their books using the data feeds coming from their banks or partners.”
So, while difficulties in managing payment infrastructures exist for many businesses, this is where fintechs have come to the fore, providing B2B tools to ease the monetary burdens of different business types.
Wallace adds: “We see tonnes of fintechs at Mastercard on a regular basis that are solving the challenges some of these antiquated services tend to have…”
For more from Wallace on how fintechs are innovating the B2B payments space, click on the video above.
To watch any of our other speakers from Fintech LIVE New York, and our interviews from Money20/20 Europe, click the link HERE.
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