Against that backdrop, the digital transformation of the banking sector is increasingly reshaping — and enhancing — the operations of traditional treasury teams.

The global banking landscape has seen several changes in recent years. Regulatory reforms, the rise of FinTech and the accelerated digitization of financial services have all redefined how banks operate and interact with their corporate clients.

Traditional banking relationships, once characterized by face-to-face interactions and manual processes, are increasingly being replaced by digital platforms that offer treasurers real-time insights, automation and a broader range of financial products.

This shift has implications for the entire enterprise function.

An important part of treasury management has always been maintaining the optimal number of banking relationships. However, the definition of “optimal” is changing. In the past, having too many banking relationships could lead to inefficiencies, higher costs and complexity in managing multiple accounts and counterparties. Today, the concept of redundancy in banking relationships is being redefined to focus on strategic flexibility and resilience.

From real-time insights to intelligent cash flow forecasting and automated payments and reconciliations, the digitization of the banking landscape provides corporate treasurers — and their organizations — more opportunities to capture growth and mitigate uncertainty.

Read also: Treasury’s Digital Migration Creates Greater Synergies With Finance Function

The Future of Enterprise Treasury Is Redundant — in a Good Way

Redundancy is no longer just about having backup banks in case of a counterparty failure. It’s about creating a network of banking partners that can provide different capabilities and services, which can be tapped into depending on market conditions, regulatory changes or business needs.

This approach allows treasury teams to diversify their risk, access a broader range of financial products, and ensure that they can continue to operate smoothly even if one banking partner faces difficulties.

Where treasurers once relied on a few banking partners for a limited set of services, they now have access to a wider array of banks, FinTech providers and digital financial products. This expanded ecosystem allows for greater flexibility and customization in how treasury functions manage liquidity, hedge risks and optimize working capital.

For instance, partnering with banks that specialize in different areas, such as trade finance, foreign exchange or digital payments, can help treasury teams optimize their operations and tap into growth opportunities.

“Many treasurers are thinking, ‘Well, how can I extract that last ounce of juice from my financial ecosystem?’” Ambrish Bansal, global head of Liquidity and Cash Concentration Products for the Citi Treasury and Trade Solutions business, told PYMNTS this month.

“I see the role of treasury becoming more central to [the enterprise’s] business strategy, to the growth strategy, to the expansion strategy — and quite frankly, to the sustainability strategy,” Bansal added. “The treasury team plays a pivotal role.”

See also: Unlocking the Critical Role of Treasurers in Corporate Decision-Making

From real-time payments and innovative settlement solutions to artificial intelligence-driven cash forecasting and supply chain financing platforms, treasurers now have access to tools that can enhance their ability to manage cash flows, mitigate risks and support business growth.

Treasurers today must be more agile in decision-making, Claudia Villasis-Wallraff, head of data driven treasury at Deutsche Bank, told PYMNTS in June.

“Companies need to adopt new technology,” she said. “And with this, I not only mean adopting API connectivity, but also cloud functions and artificial intelligence.”

“Shareholders and the C-level are going to start asking more and requesting more from their treasury teams,” she added.

Looking ahead, the ability to create operational cash flow forecasting without manual intervention will be a game changer for treasury teams, she said. This automation can streamline treasury operations, allowing treasurers to focus on more strategic tasks.

One of the most impactful innovations across the corporate back office has been the rise of real-time treasury management systems. These platforms integrate with multiple banking partners and financial products, providing treasurers with real-time visibility into their cash positions across accounts, currencies and regions. By using real-time data, treasurers can make more informed decisions, optimize liquidity management, and work to reduce the cost of borrowing.

With this knowledge at their fingertips, forward-thinking treasurers will be expected to act as strategic advisors to their organizations, using their insights into the financial markets and their understanding of the company’s financial needs to drive growth and operational efficiency.

This view is supported by the latest PYMNTS Intelligence, which found that 77% of treasurers said at least one department in their organization would benefit from closer collaboration with them.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Optimizing Bank Relationships Challenges the Real-Time Treasury Executive appeared first on PYMNTS.com.

The company, which makes accounting, financial, HR and payroll products for small and medium-sized businesses (SMBs), announced the expansion Tuesday (Aug. 13) as part of a series of enhancements and updates for customers of its Sage Intacct offering.

“As part of this major expansion, Sage Intacct is rolling out AP Automation globally,” the company said in a news release.

“In the US, businesses are already processing over 10,000 bills per month using this innovative tool, which utilizes AI to halve the time taken for accounts payable processes while saving organizations over $100,000 per year.”

According to the release, AP Automation streamlines financial workflows by automatically creating draft bills from uploaded documents, and spotting issues such as duplicates, while reducing data entry efforts and costs.

Dan Miller, executive vice president of Sage’s financials and ERP division, said the company is the first mid-market solution offering AP automation outside the U.S.

“What’s more, our ongoing global expansion and the achievement of significant certifications, showcases our commitment to providing globally compliant, secure, and robust financial solutions that meet the diverse needs of businesses everywhere,” Miller said.

Sage is using artificial intelligence (AI)-powered accounts payable (AP) automation at a time when, as noted here last month, AP is “being recognized for its potential to become a growth engine for businesses.”

But as Melissa Johnson, head of operations at Ottimate, told PYMNTS, many companies are still relying on outdated and fragmented systems, leading to inefficiencies, as well as the increased risk of errors and fraud.

“First and foremost, eliminating that manual data entry is key. It’s expensive, probably more expensive than companies realize, as well as being error prone, inefficient, and having a high risk of fraud,” Johnson said.

“A lot of finance leaders are unfamiliar with the latest AP automation technologies,” she added. “They might have looked at the technology a few years ago and found it not quite ready. But the landscape has changed dramatically, and those who adopt automation often don’t look back.”

At the same time, adhering to a “less is more” philosophy can help companies move closer to unlocking growth via their AP functions. PYMNTS Intelligence data has found that nearly 60% of large firms are using at least five different AP systems, “a setup that is far from ideal.”

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Sage Expands AP Automation Product to Businesses Worldwide appeared first on PYMNTS.com.

The problem with building convenience into business payments is that, while in theory it sounds relatively simple, in practice it ends up being incredibly difficult.

B2B payments exist primarily below the waterline — being made up of workflows and data as much as, if not more than, they are the actual transfer of funds. And below that same waterline lurks four key buckets of complexity around risk, regulation, infrastructure and cost basis.

Historically, B2B payment processes have been plagued by inefficiencies, such as manual invoicing, slow payment cycles, and complex reconciliation procedures. These inefficiencies not only strain cash flow but also consume time and resources that could be better spent on core business activities.

Digital mechanisms are slowly chipping away at the long-standing dominance of paper checks. But to fully turn the tide, a great B2B payments UX needs to solve for thousands, if not tens of thousands, of small issues and fragmentations across payments infrastructure, process, and compliance.

This can be a daunting proposition, but companies are recognizing that improving the UX for B2B payments can drive efficiency, security and business agility — as well as keep their commercial customers and suppliers happy.

Read more: Building Better B2B Relationships Through Payments Innovation

Elevating User Experience

Efficiency is at the heart of any successful business operation, and B2B payments are no exception.

But optimizing B2B payments tends to run through, and into, the following bottlenecks: building a frictionless experience runs into know your business (KYB) requirements; removing friction can result in an increase in fraud — and card networks will ban providers who fail to get their fraud rates down. Banks will also de-platform providers without effective anti-money laundering (AML) processes. B2B payments can also simply just not work due to formatting errors and other manually driven disconnects.

“There’s a lot of messiness around payments, particularly very large B2B payments that might house hundreds or thousands of invoices with hundreds of associated line-item details,” Boost Payment Solutions Founder and CEO Dean M. Leavitt told PYMNTS last month. “Large enterprises on both the AP [accounts payable] and AR [accounts receivable] side are looking for ways to automate those processes, digitize them and reduce their cost as well.”

Against this backdrop, PYMNTS Intelligence finds that automation, virtual cards and digital payments are becoming the new cornerstones of B2B payments, with businesses recognizing their role in strengthening buyer-supplier relationships. According to the report, a “consumerization” of the B2B payments experience is inevitable as businesses recognize the need to build loyalty with their “other” customers: B2B partners.

“There is value in convenience; it makes customers more sticky,” Eric Foust, vice president of banking partnerships in North America at Trustly, told PYMNTS in November. 

Read more: Will 2024 Be the Year of Win-Win Buyer-Supplier Dynamics?

Agility and Certainty

Certainty is another critical factor in B2B payments, particularly when dealing with large sums of money and complex financial arrangements. Uncertainty in payment processing can lead to cash flow issues, strained relationships with suppliers, and even legal disputes. By elevating the user experience, businesses can achieve greater certainty in their payment processes, reducing the risk of errors, delays and disputes.

“B2B transactions have traditionally had a slower approval process, and B2B players have been slower to adopt new technology. But what we’re seeing with a shift to digital is that there is now more data, more controls, stronger authentication coming into that B2B space, all the while bringing down the cost and improving the risk models,” Jennifer Marriner, EVP, Global Acceptance Solutions at Mastercard, told PYMNTS. “We’re definitely seeing on the B2B side a realization that there’s a way they can streamline their business.”

Improving the UX in B2B payments via automation and virtual cards can play a crucial role in enhancing security. A well-designed payment platform can incorporate advanced security features, such as multifactor authentication (MFA), encryption, and real-time fraud detection, without compromising on usability. By making these security measures intuitive and easy to use, businesses can ensure that employees adhere to best practices, reducing the risk of human error that often leads to security breaches.

“A lot of fraud is in the checks. If you cut out checks, you cut 60% of fraud right there,” Ernest Rolfson, founder and CEO of Finexio, told PYMNTS.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Digital B2B Payments Turn User Experience Into a Superpower appeared first on PYMNTS.com.

That’s what makes the whole concept of digitization and the payoff that comes along with it so appealing to the space. What business wouldn’t want to not just improve productivity, but also enable better cash flow management and unlock a more granular handle on working capital?

Ultimately, as PYMNTS has heard repeatedly from experts and insiders in the B2B space, any B2B payments initiative should be measured against how it delivers across providing cost reduction, increasing fraud prevention, optimizing working capital management and enabling greater transparency and control over payment workflows.

That’s why PYMNTS keeps an ear to the ground, listening for all the latest initiatives. The top B2B innovation themes we heard this week were around the buy, build or partner decisions shaping today’s landscape; the widening gap between digital innovation’s benefits and the limitations of traditional solutions; and the competitive edge that real-time insights give B2B firms.

Read also: Trading in Paper for Technology Tops This Week in B2B

Buy, Build or Partner Is Defining the Future of B2B

With so much opportunity to capture in the B2B space, the marketplace rarely stands still. Increasingly, it is being shaped by the decisions upstarts and legacy juggernauts alike are making around the business decision of whether to buy, build or partner when it comes to B2B innovation.

On the partnership front, payments processor Thredd helped LianLian Global launch a virtual card program for Asia-Pacific (APAC) region customers in industries such as eCommerce, travel and international B2B trade, the two companies said Thursday (Aug. 8).

CredibleX and Fracxn announced Monday (Aug. 5) they partnered to provide small- to medium-sized businesses (SMBs) with access to a variety of financing solutions.

Raken expanded the capabilities of its field management solutions for the construction industry by adding an integration with the Sage Intacct cloud accounting, payroll and human resources solution. The integration, announced Monday, automatically syncs project data, including completed time entries, and helps contractors shorten the time it takes to process payroll, reduce the number of payroll errors and improve job costing.

Elsewhere, Citi and International Finance Corp., a global development institution and member of the World Bank Group, partnered Monday on a $2 billion sustainable supply chain finance program focused on emerging markets. The first project under the umbrella of this agreement is a $500 million facility in Mexico.

On the buy side of things this week in B2B, Payoneer, a small-business-focused FinTech, acquired Singapore-based payroll/HR platform Skuad for $61 million Wednesday (Aug. 7). The deal is designed to bolster Payoneer’s efforts to serve as a “business-grade financial stack” for SMBs that operate on an international scale.

Flywire acquired Invoiced, a Software-as-a-Service (SaaS) platform that enables B2B finance teams to automate the order-to-cash process, Tuesday (Aug. 6). The Invoiced platform helps automate accounts receivable processes by managing invoices, communicating with payers and reconciling payments to the user’s enterprise resource planning system.

Meanwhile, on the build front, Cartona said Monday that it raised $8.1 million in a Series A extension fundraise to continue growing the product rollout, verticals and offerings of its B2B platform for businesses in Egypt and, in the future, other markets in the Middle East and North Africa (MENA) region.

Revolut Business expanded the availability of its “borderless financial super app for businesses” to Singapore Tuesday and is looking to add other markets.

Still, in our interconnected and digital world, it is becoming increasingly clear that the cost of a single vendor’s downtime on B2B partners can be catastrophic.

Embracing Innovative Solutions Across B2B Payments

The PYMNTS Intelligence report “Building Better B2B Relationships Through Payments Innovation” found that 8 in 10 executives have lost business due to payments errors. That’s a large part of why automation, virtual cards and digital payments are increasingly being recognized as vital components of modern B2B transactions.

The emergence of embedded finance alone has supercharged the digital transformation of B2B payments and commerce, and PYMNTS dug into how integrating financial services directly into the B2B experience is enabling next-generation service offerings.

We also covered how global businesses need instant insight into their finances. Traditional treasury operations, which often rely on end-of-day processes and batch data, are ill-suited to meet the demands of a digital, real-time financial world.

As Galileo Financial Technologies Chief Product Officer David Feuer told PYMNTS, same-day, faster wire transfers are set to help transform a broad line of business use cases with real-time notifications.

“While FedNow brings this real-time API nature” to transactions, “it’s still at the end of the day using Fedwire, which is terrific because as we build this wires functionality on top of Fedwire, we can add FedNow as an iterative feature set on top of it and not have to completely rebuild our connectivity to the Fed,” he said.

Using Artificial Intelligence

As Settle CEO Alek Koenig told PYMNTS about the digital transformation of the consumer packaged goods space in an interview posted Thursday, “It is incredibly difficult for CPG businesses to plan. And one of our jobs here should be to give them the tools to be able to plan better and make smarter decisions.”

The PYMNTS Intelligence report “The Impact of Payment Options on Business Growth: How Secure Payments and AI Integration Drive Efficiency and Reduce Uncertainty” found that using artificial intelligence in payment processes reduces uncertainty. Among firms using AI for at least half of their accounts payable processes, 86% reported the payment methods at their disposal enable business growth. Conversely, firms with minimal AI use or experience are less likely to see their payment options have a positive impact on business growth.

The marketplace is already responding in turn. Wendy’s Quality Supply Chain Co-op (QSCC), a purchasing cooperative that services more than 6,400 Wendy’s restaurants in the United States and Canada, teamed with Palantir Technologies Wednesday to accelerate its digital transformation and adoption of AI.

Via the partnership, Palantir, a provider of AI systems, will help QSCC develop an integrated supply chain network; implement AI-driven, automated workflows; and build a connected ecosystem of suppliers, distributors and restaurants.

Elsewhere, SaaS platform Wix said Monday it began offering its customers access to Google’s Gemini for Workspace AI tool.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post This Week in B2B: Capturing Real-Time Intelligence’s Competitive Edge appeared first on PYMNTS.com.

And with the news that the European Securities and Markets Authority is aiming for either the fourth quarter of 2027, the first quarter of 2028 or the fourth quarter of 2028 for moving its financial markets to be more in line with the U.S., where T+1 settlement for capital markets went live this past May, forward-thinking multinationals are already weighing the impact this accelerated settlement will have on their corporate treasury operations.

After all, in today’s fast-paced global economy, the ability to respond swiftly to financial changes can be the difference between success and failure. For multinational corporations, where financial operations span multiple jurisdictions, currencies and regulatory environments, the need for real-time treasury management has never been more pressing.

Global businesses need instant insight into their finances. Traditional treasury operations, which often rely on end-of-day processes and batch data, are ill-suited to meet the demands of a T+1 world – making the adoption of real-time treasury solutions crucial for compliance with future T+1 realities.

Read more: Unlocking the Critical Role of Treasurers in Corporate Decision-Making

The Imperative of Real-Time Treasury Management

Cash forecasting is the cornerstone of treasury operations, enabling companies to predict their future cash needs and plan accordingly. However, in a T+1 environment, the margin for error in cash forecasting narrows significantly. Without real-time data, treasurers may find themselves scrambling to cover unexpected shortfalls or, conversely, holding excess cash that could have been invested or used to reduce debt.

The T+1 settlement cycle, where transactions are settled one business day after the trade date, marks a significant acceleration from the traditional T+2 cycle and is meant to reduce counterparty risk, enhance market liquidity, and improve overall market efficiency.

However, this accelerated timeline poses new challenges for corporate treasuries, particularly those of multinational corporations that must navigate complex global financial landscapes — and the elephant in the room is the European Union’s misalignment with the market realities in the U.S.

“Complexity can arise from many different sources, whether it’s the holding structure or the nature of the business,” Noam Mills, CEO at Panax, told PYMNTS.

Mills noted that pain points can span from the realities of businesses working across multiple geographies and dealing with different currencies; to others whose pain stems from a multitude of accounts, even in one geography, that can make managing working capital a challenge. Operational and treasury-centric complexities frequently also arise from the usage of credit lines on one hand or interest-bearing account on the other hand.

Real-time treasury solutions allow for dynamic cash forecasting, where predictions are continuously updated based on the latest transaction data, market conditions, and other relevant factors. This level of precision is critical in a T+1 world, where the ability to anticipate and react to changes in cash flow can directly impact a company’s financial stability.

PYMNTS Intelligence data on corporate treasury challenges and opportunities found that corporate workflows can, and should, benefit from everything from automated daily reconciliation across all bank accounts to advanced cash flow forecasting.

See also: Treasury’s Digital Migration Creates Greater Synergies With Finance Function

The Role of AI in Transforming Cash Management

To successfully transition to real-time treasury management, companies will need to invest in advanced treasury management systems (TMS) that can integrate seamlessly with their existing financial infrastructure.

These systems must be capable of handling large volumes of data, providing real-time analytics and supporting automated processes. Additionally, companies will need to ensure that their TMS can interface with external systems, such as banking platforms and payment networks, to facilitate real-time transactions and reporting. And modern treasury operations are increasingly being given a shot in the arm from other advanced technologies like artificial intelligence (AI) and machine learning (ML).

“AI and ML are transforming everything treasury,” Jarrett Bruhn, managing director and head of data and AI in global transaction services at Bank of America, told PYMNTS last year. “It’s the equivalent of the Industrial Revolution 4.0. When you think of what a treasurer does, trying to find operational and cost efficiencies, these tools and technologies fundamentally change how they can do their daily job.”

And as PYMNTS Intelligence has found, ultimately, treasurers with high levels of influence are far more likely to report that their companies have predictable cash flows, expect revenue to increase and are agile in responding to shifting marking conditions.

The post Legacy Treasury Management Systems Ill-Equipped as Markets Enter Real-Time Era appeared first on PYMNTS.com.

Embedded payments are, increasingly, everywhere. With the news Tuesday (Aug. 6) that Web Monetization is coming to Google Chrome, allowing website owners to receive embedded micro-payments as an additional way to generate revenue, the implications the rise of embedded payments could have for online B2B commerce and marketplace platforms, as well as the opportunity for small- to medium-sized businesses (SMBs), is top of mind for both firms and the financial institutions servicing them.

Traditional B2B transactions often involve lengthy payment cycles and cumbersome processes, including invoicing, purchase orders and manual reconciliations. Embedded finance can speed these processes by integrating payment solutions directly into B2B platforms. Companies can offer instant credit lines, automated invoicing and real-time payment tracking, reducing friction and accelerating the sales cycle.

By integrating financial services directly into the B2B experience — and offering services such as payment, lending, insurance and other financial products — companies are increasingly embracing their potential benefits.

Read more: Halftime Report: 18 Payments Executives Share The Issues That Will Define The Rest of 2024

Embedded Finance is Transforming the B2B Commerce Experience

As businesses seek more efficient ways to manage payments and working capital, embedded finance is emerging as a transformative force in B2B commerce. That’s according to Alan Koenigsberg, senior vice president and global head of large, middle market, industry verticals and working capital solutions at Visa, who told PYMNTS that while embedded finance has been a staple in consumer eCommerce for years, its application in the B2B space is gaining momentum.

In a separate conversation, Jim Colassano, senior vice president, RTP, product development and strategy at The Clearing House, echoed that analysis and told PYMNTS that the next stop for embedded finance is B2B commerce.

Research in “The Embedded Finance Ecosystem: Logistics and Wholesale Trade Edition,” a PYMNTS Intelligence and Carat from Fiserv collaboration, finds that a majority of marketplaces (57%) are “highly interested” in further innovating their existing digital wallet offerings.

In June, Amazon Business, Amazon’s online business-to-business procurement store, announced a number of new features to help large business customers simplify the way they shop for business supplies. Among the company’s offerings, the Amazon Business App Center includes integrated shopping, accounting management, expense management, rewards and recognition inventory management and business analytics.

As embedded payment solutions gain traction in the B2B space, businesses face the challenge of integrating these solutions into their existing technology stacks. Eric Frankovic, general manager of corporate payments at WEX, stressed to PYMNTS the importance of deep industry knowledge and strong partnerships in overcoming these challenges.

Read more: How Embedded Payments Help Businesses Own Key ‘Micro Moments’

The Embedded Lending Opportunity for SMBs

Beyond B2B commerce, the rise of embedded finance also presents numerous opportunities for SMBs, which are often the lifeblood of economic growth but commonly face unique challenges in accessing financial services from traditional providers.

Embedded finance can democratize access to capital by leveraging transactional data and advanced analytics. B2B platforms can offer personalized financing solutions that are faster and more flexible than traditional bank loans. This can empower SMBs to invest in new technologies, expand their product lines and enter new markets.

PYMNTS Intelligence in “The Embedded Lending Opportunity: U.S. Edition,” a study commissioned by Visa, revealed that more than four in 10 small businesses (42%) surveyed report that they are very likely to switch providers to access embedded lending.

By integrating financial services into their platforms, SMBs can offer a more seamless and convenient experience for their customers. This includes everything from instant payments and credit options to integrated insurance and investment products. A superior customer experience can drive loyalty, increase sales and provide a competitive edge in a crowded market.

“We see merchants that are looking for ways to increase conversions,” especially over the past year and a half of high inflation, Sunil Sachdev, senior vice president, head of embedded finance at Fiserv, explained to PYMNTS. “They don’t want to be financial institutions, and they don’t want to underwrite credit. But at the same time, they want to be able to help their customers buy more stuff.”

The post From Google Chrome to B2B Marketplaces, Embedded Payments Transform Commerce appeared first on PYMNTS.com.

“We’re here to empower Singaporean companies of all sizes, including 1,000+ who signed up to our waitlist,” the company said in a Tuesday (Aug. 6) post on LinkedIn.

With Revolut Business, companies can access more than 150 currencies at the interbank rate; hold more than 25 currencies in their account; set limits, track spending, and freeze and unfreeze cards in-app; invite their whole team, set permissions and manage expenses on the go; and employ custom spending rules, automated accounting and other tools that offer them full financial control, according to the post.

Available on both mobile and web, Revolut Business helps startups, scale-ups and enterprises improve how they accept and make payments, control spending and empower their teams, according to the company’s LinkedIn profile.

Revolut Business added in the post, “Where should we launch next?”

It was reported in May that Revolut, a London-based FinTech, set its sights on the Asia-Pacific (APAC) region for its global expansion strategy.

Charlie Short, head of growth at Revolut, said at the time that the company is committed to accelerating its growth in markets such as Australia, New Zealand and Singapore.

In September, Revolut Business added a feature called RevTags, a free and instant global payments network available to businesses within the Revolut network and designed to address the difficulties surrounding cross-border payments. It is available to Revolut’s retail and business customers worldwide.

The feature makes the process of making transactions more streamlined and efficient by allowing businesses to enter the RevTag of an individual or business in the Revolut Business app, rather than having to enter IBANs or additional beneficiary details.

Revolut reported in July that its revenues jumped 95% last year, from $1.1 billion in 2022 to $2.2 billion in 2023. The company also added 12 million new customers, bringing its total customer base to 45 million as of June.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

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For proof, just look at the ongoing fallout from the July 18 disruption of Microsoft’s Windows operating system caused by cybersecurity firm CrowdStrike’s software update, which disrupted computer systems at businesses and public services around the world, including airlines, banks and hospitals. Microsoft has estimated that about 8.5 million Windows devices were hit by the faulty update.

The latest news from that black swan catastrophe for the connected economy?

CrowdStrike’s legal counsel has struck back at Delta Air Lines with a Sunday (Aug. 4) letter denying it was responsible for the carrier’s own IT decisions and subsequent disruptions, after the airline announced plans to seek legal damages from the outage.

Delta has claimed that the massive IT outage, which canceled over 5,000 of its flights, will cost it $500 million.

In a letter, CrowdStrike’s counsel said that while the company accepts responsibility for the outage, it does not accept responsibility for Delta’s own IT decisions and the subsequent impact they had on business operations, noting that “Delta’s competitors, facing similar challenges, all restored operations much faster.”

“Delta’s public threat of litigation distracts from this work and has contributed to a misleading narrative that CrowdStrike is responsible for Delta’s IT decisions and response to the outage,” the letter said, going on to emphasize that Delta “turned down free onsite help from CrowdStrike professionals who assisted many other customers to restore operations much more quickly than Delta,” as well as the fact that other airlines were able to bounce back in a much faster time period.

“CrowdStrike’s focus remains on its customers, including Delta. CrowdStrike hopes Delta reconsiders its approach and agrees to work cooperatively with CrowdStrike going forward, as the two sides historically have done,” the company’s counsel added.

What the legal bluster ultimately shows is that, in today’s digital age, the ability to recover quickly from an outage and ensure continuity is paramount for business success.

Read more: Managing Third-Party Risks Emerges as Key B2B Issue

When an Outage Becomes an Issue

Reached for comment, a CrowdStrike spokesperson said to PYMNTS: “The letter speaks for itself. We have expressed our regret and apologies to all of our customers for this incident and the disruption that resulted. Public posturing about potentially bringing a meritless lawsuit against CrowdStrike as a long-time partner is not constructive to any party. We hope that Delta will agree to work cooperatively to find a resolution.”

Effective disaster recovery planning requires collaboration between businesses and their B2B partners. This includes sharing information about potential risks, coordinating response strategies and conducting joint drills and simulations. By working together, businesses and their partners can ensure a more comprehensive and cohesive approach to resilience.

Whether it’s due to a cyberattack, natural disaster or technical failure, an outage can disrupt operations, erode customer trust and incur substantial financial losses. For businesses, the ability to swiftly recover from such incidents is a necessity.

The repercussions extend beyond immediate financial losses. In the age of social media, news of an outage spreads rapidly, potentially damaging a company’s reputation and eroding customer trust. B2B partners, such as cloud service providers, IT vendors and supply chain partners, are integral to maintaining resilient infrastructure. These partners must prioritize resilience to support their clients’ continuity and success.

Read more: Crisis as Catalyst: What AT&T, CrowdStrike Incidents Say About Recovery Best Practices

“With complex ecosystems, you have a higher number of partners than you may have historically had” in the past, Larson McNeil, co-head of marketplaces and digital ecosystems at J.P. Morgan Payments, told PYMNTS. “You’ve got to understand your industry and the various players in the ecosystem — and as complexity increases, you’ve got to understand the risk and the opportunities that this creates for the business.”

Digital outages aren’t the only threat to B2B relationships. The latest PYMNTS intelligence report finds that timely and reliable payments are fundamental to strong B2B partnerships and are especially critical for small- to medium-sized businesses (SMBs) on the receiving end.

However, the continued use of paper payments and manual accounts payable (AP) and accounts receivable (AR) processes often leads to payment delays and poor communication, threatening the trust and two-way efficiency vital to these connections.

Good communication is the basis of any effective relationship, and B2B partnerships are no exception, the report noted. However, suppliers’ AR teams must be able to collaborate with buyers’ AP teams to ensure the smooth and swift processing of invoices and payment. However, communication gaps in legacy payment systems frequently short-circuit these connection.

The post Delta, CrowdStrike Fallout Highlights Why Firms Need a Recovery Plan appeared first on PYMNTS.com.

Lengthy payment cycles, inefficient communication, and error-prone methods are particularly challenging for small and medium-sized businesses (SMBs) that rely on timely payments. The demand for efficiency and trust necessitates adopting automated and digital solutions.

In response, businesses are adopting automation, virtual cards and digital payments. These innovations enhance cash flow, reduce costs, and improve customer experiences. Embracing these technologies helps companies strengthen supplier relationships, streamline operations, and stay competitive in the evolving digital landscape.

A recent PYMNTS Intelligence report, “Building Better B2B Relationships Through Payments Innovation,” in collaboration with American Express, explores challenges and solutions in B2B payments, emphasizing the role of automation and real-time payments. It examines how digital payment methods are reshaping interactions between buyers and suppliers, detailing the shift from manual processes to modern, consumer-like payment experiences. The analysis offers insights on enhancing payment strategies to strengthen and streamline B2B relationships.

Addressing Payment Inefficiencies

In the landscape of B2B transactions, inefficiencies in manual payments are straining relationships and disrupting cash flow. As of 2023, a troubling 42% of businesses reported an average days sales outstanding (DSO) exceeding 60 days, nearly doubling the previous year’s figures.

These delays intensified using paper checks and manual accounting, often drive SMBs to seek alternative working capital sources. This reliance can strain business relationships and increase the likelihood of operational disruptions.

In 2024, more than 80% of executives say they’ve lost business because of a payment process miscommunication. More than half say it’s happened on more than one occasion.

The traditional approach to accounts payable (AP) and accounts receivable (AR) is failing to meet the demands of today’s business environment. Legacy systems are cumbersome and hinder effective communication between buyers and suppliers. More than 80% of SMBs acknowledge the critical role of automation in managing daily financial tasks, yet manual processes continue to dominate. These outdated methods create a bottleneck in financial management, jeopardizing timely payments and risking long-term business relationships.

Rise of Automation and Real-Time Payments

Automation, virtual cards and digital payments are recognized as vital components of modern B2B transactions. Automation bridges gaps between AR and AP teams, facilitating better communication and reducing disputes. According to a 2023 study, disputes and communication breakdowns between B2B partners lead to an average of $4 million in outstanding invoices per mid-sized company each month. Automation can mitigate these issues by offering real-time communication and streamlined payment processes.

Real-time payments are becoming a key preference among businesses, with 66% of SMB receivers expressing a strong preference for this method. The demand is particularly high among freelancers and contractors, with 81% favoring instant payments. Enterprises are responding by integrating real-time payment options, recognizing that 58% of payers view payee satisfaction as a primary motivation for offering these services. This shift toward instant payments is crucial for maintaining a competitive advantage and building stronger B2B relationships.

Consumerization of B2B Payments

The “consumerization” of B2B payments reflects a broader trend toward enhancing the payment experience for business partners. As digital payment methods become more sophisticated in the consumer realm, B2B transactions are also evolving. Nearly 40% of firms still rely on paper checks, highlighting an opportunity for modernization. Innovations such as virtual cards and digital wallets are improving transaction efficiency and overall partner satisfaction.

Research indicates that 84% of manufacturers receiving real-time payments report stronger buyer-supplier relationships. This sentiment is echoed across various industries, with real-time payments proving to be a pivotal factor in fostering trust and collaboration. As businesses increasingly prioritize digital and efficient payment methods, those that embrace these innovations are better positioned to build lasting, profitable relationships with their B2B partners.

By adopting automation and real-time payment solutions, companies can transform the traditional B2B payment landscape, turning challenges into opportunities for growth and improved business relationships.

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Cartona has raised $8.1 million in a Series A extension fundraise to continue growing the product rollout, verticals and offerings of its B2B platform for businesses in Egypt and, in the future, other markets in the Middle East and North Africa (MENA) region.

The platform currently digitizes and empowers mom-and-pop stores, hotels, restaurants, cafes, fast-moving consumer goods companies and wholesalers in Egypt, the company said in a Tuesday (July 30) press release.

“We have an exciting future ahead, replicating the successful execution of our business model in other regional markets — all making trading as easy and accessible as possible for retailers and suppliers,” Mahmoud Talaat, CEO and co-founder of Cartona, said in the release.

Cartona’s B2B platform digitizes the traditional trade market and connects retailers with producers, distributors and wholesalers, according to the release.

By doing so, it enables retailers to order inventory through a mobile app; access embedded financing that is integrated into the ordering cycles; and gain detailed market insights on buyer behavior, price competition and market share, the release said.

With these resources, retailers can better manage their stock and working capital via cash or credit orders and improve profit margins, per the release.

Omar Khashaba, general partner at Algebra Ventures, which led the funding round, said in the release that Cartona has a capital-efficient model that allows it to grow and profit even amid economic headwinds.

“The asset light nature of its model creates scalable infrastructure that can quickly be adapted for entry into new markets and adjacencies,” Khashaba said in the release. “Cartona has also been a driving force for financial inclusion in the retail sector as more and more of its small merchants take advantage of inventory financing options.”

When Cartona announced an earlier funding round in July 2022, the company said it aimed to digitize Egypt’s trade system, much of which was still operating offline, with its B2B platform.

A month earlier, in May 2022, the company said it was working with multinational consumer goods company Unilever in a partnership designed to give Unilever access to a digital network of retailers and to help Cartona’s customers access Unilever products more easily.

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