While the shift to digital is obviously underway – paper checks still represent 47% of the value in 2018, the study finds. Automated Clearing House (ACH) accounts for 34% of B2B payments value in 2018 and wires account for 14% of B2B payments value in 2018 and Cards account for 6% of B2B payments value in 2018.
Mercator anticipates a more rapid decline than the 0-4% decline recently predicted in AFP and Fed payment studies, while small and medium sized enterprises are the largest users of checks and fintechs have been targeting the market with new banking solutions, according to the same findings.
Among the conclusions of the report can be counted the fact that as new technology emerges and modern upgrades to legacy systems provide better user experiences, businesses have an expanding array of choices for more effective and efficient business-to-business (B2B) payments. The influence of financial technology companies (fintechs) on the B2B space is growing and filling in the payments gaps as usage of paper payments starts to fade away.
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