A recent study by PYMNTS has projected that up to 80% of all business-to-business transactions could be conducted digitally by 2025.
The study – titled Enabling B2B Payments For The Virtual Workforce – detailed that mobile and contactless payment options – such as virtual cards – are expected reshape the corporate payments ecosystem. According to PYMNTS, in the B2B space, this is driven by the efficiencies and spend management capabilities they provide.
PYMNTS remarked that virtual cards can help companies develop real-time spend management to facilitate finalising vendor payments or other B2B expenses, adding that ‘waiting until the end of the month to review and resolve spending is no longer an option for businesses that must optimise their cash flows to stay up and running’.
The study found that almost half – 49.2% – of companies cite manual accounts receivable processes as a major issue while 48.4% said processing speeds are a major challenge. PYMNTS said these issues have ‘dramatically boosted’ companies’ interests in digital B2B innovations such as virtual cards.
The projected volume of the global B2B virtual card payment market is anticipated to reach $553bn by 2024.
PYMNTS said, “Firms are drawn to digital B2B solutions such as virtual cards because they can help businesses process payments faster, reduce manual input and offer real-time visibility into where payments are in the transaction process.”
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