Adrian Floate 5 January - 4 min read
The COVID-19 pandemic resulted in 2020 being defined by a huge uptake of business-to-customer (B2C) payment services, such as contactless transactions and online shopping.
As businesses across the globe assess how they will bounce back and upscale their capabilities, there are unprecedented opportunities for the acceleration and adoption of fintech innovation in the business-to-business (B2B) space.
Breakthrough fintech technology in postpay options will result in a revolutionary and transformative year for B2B payments in 2021.
The past year has been a boom for B2C focused fintechs, such as the explosion of buy-now, pay-later (BNPL) and pay-by-instalment services. However, there continues to be a substantial gap in the B2B financial services market.
The universal challenges for B2B trade continues to be the time it takes to get paid and following up debtors.
These issues impact a company’s cash flow and access to capital.
The reasons for slow payment times include:
Australia leads the way in the Asia-Pacific region for offering trade credit to customers. Trade credit now accounts for more than 70 per cent of the total value of B2B sales for Australian companies. This trend is likely to continue because BNPL is a quick way to sell goods and services.
A major flaw with BNPL is that all of the financial risk remains with the supplier until the invoice is paid. Fintech innovations next year will help reduce this risk by offering an AfterPay type solution in the B2B space designed to help businesses get paid quicker.
Pay-one, pay-all invoices
End-of-day funds settlement just got a whole lot easier with Spenda’s new feature upgrade in SpendaPOS.
Today, Science, Technology, Mathematics and Engineering (STEM) careers are still very underrepresented by women. While there have been massive steps taken to promote STEM as a career to young women, there is still a lot of work that needs to be done to encourage young women to even consider these disciplines when planning their futures.
The fiscal policy measures introduced by the State and Federal Governments to cushion the economic impacts of the COVID-
19 pandemic have provided some businesses with a much-needed lifeline.
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