Fintech Solutions for B2B Businesses

The pandemic has accelerated the shift of many businesses toward digital platforms for their operations. Fintech companies are at the forefront of this transformation, offering tools and solutions that empower small and medium-sized businesses to grow without incurring significant costs. A key requirement for these businesses is the ability to execute instant B2B monetary transactions, and the fintech market is thriving in this area, with Open Banking expected to be a significant catalyst for growth.

Key Fintech Solutions for B2B Businesses

1. Payment-as-a-Solution (PaaS)
Today’s businesses need to facilitate instant payments to maintain smooth operations. Fintech companies are simplifying and speeding up the B2B payment process. Business owners can integrate PaaS platforms into their digital systems, enabling multiple payment channels for hassle-free monetary transactions. Notable providers in this space include Stripe, Square, Zelle, Adyen, Bolt, and Payoneer.

2. Banking-as-a-Solution (BaaS)
BaaS platforms enable businesses to manage end-to-end financial processes, including digital payments, without relying on traditional banks. Developing an in-house blockchain-based BaaS platform can be costly, but fintech companies offer these services at minimal subscription fees. BaaS platforms leverage blockchain technology, allowing B2B businesses to make direct cross-border payments easily and affordably. Prominent BaaS providers include Green Dot, Cross River, Starling Bank, Bankable, and Kasasa.

3. B2B Lending
The Covid-19 pandemic has strained many businesses, leaving them short on working capital and ineligible for traditional bank loans. Fintech platforms that connect businesses with lenders can significantly improve cash flow for small and medium-sized enterprises (SMEs). Well-known B2B lending providers include Affirm, Greensky, Behalf, LendKey, Kabbage, Klarna, Brex, TrueAccord, Funding Circle, and Lending Club.

4. Accounts Receivable and Accounts Payable (AR and AP) Automation
Studies show that businesses spend a considerable amount of time on accounts receivable and payable processes, often leading to delayed payments and cash flow issues. Fintech companies like Stampli offer full AP automation solutions that streamline communications, documentation, and payments through a single platform. Other notable providers include Tipalti, AvidXchange, MineralTree, and PrimeRevenue, which help businesses automate invoice generation and make multi-currency payments to vendors globally.

5. Business Insurance (Insurtech)
Insurtech companies are creating insurance platforms tailored to cover the unique risks faced by businesses, especially those transitioning to digital operations. Providers such as Embroker, CoverWallet, Snapsheet, and Next Insurance offer specialized coverage for B2B businesses.

6. Virtual Cards
Virtual cards have gained popularity as a secure payment method for B2B transactions. They allow users to make digital payments authenticated by one-time passcodes (OTPs), ensuring security without exposing account details. Virtual cards also provide businesses with cashback incentives, typically offering up to 0.5% cashback on payments. For example, a business paying $1 million to a supplier can earn $5,000 in cashback. Fintech companies like Ezzo, B2BPay, Wittix, and Payhawk specialize in virtual card solutions.

A survey by Pymnts indicates that 46.4% of accounts payable professionals are keen to implement automated processes for invoicing, payments, and reconciliation, while 22.9% are interested in integrating virtual cards into their B2B payment systems. The B2B market presents substantial opportunities for fintech companies as businesses continue to digitize their operations.

About Mena Advisory

Mena Advisory is a UK based consultancy with International Consultancy. As the digital payments landscape evolves, we strive to keep our clients and fintech businesses informed about innovations in financial technology and digital payments, helping them gain a competitive edge.

If you’re looking to innovate your fintech business, diversify your product offerings, or expand into new markets, Mena Advisory can assist you.