How businesses control global money transfers with a B2B Payments Ecosystem

Owning this ecosystem gives enterprises more control over their global money transfers, allowing them to rethink and transform how clients are served and vendors are paid – without constraints from legacy banking institutions and payment providers.

5 challenges with global money transfers today

• High processing costs incurred by manual efforts, increased transaction volumes, and outdated methods. According to Deloitte, over 35% of businesses report high processing costs as a major challenge with traditional payment methods.
• Payment delays have significant impacts to meeting vendor obligations, procurement timelines, and payroll expectations. Leading causes include human error in data entry, process inefficiencies, and higher processing volumes.
• Limited visibility into transactions makes it difficult for enterprises to know what’s working and not working within their global money transfer frameworks. Complex monetary flows, differences in cross-border payment mechanisms, and legacy processes obscure vital operational data. 
• Increased fraud risk due to interconnected systems and inconsistent authorisation controls across organisations and borders. The Association for Financial Professionals reports that 65% of organisations were victims of payments fraud attacks and attempts in 2022.
• Fragmented payment methods, caused by differences in technology and processes, force enterprises to adapt to multiple sellers, leading to increased overhead costs, errors, and delays.

The shift towards B2B Payments Ecosystems is already underway

Enterprises recognise the importance of optimising their global money transfers and are taking a larger share of control over their payments processes. Finance teams across industries are turning to digital payments and finance functions to drive transformative change, with 94 percent having plans to invest in these areas.

Here are three trends that underscore the growing momentum behind B2B Payments Ecosystems. 

Trend no. 1 – Closed-loop payment ecosystems 

The emergence of ‘closed-loop’ payment systems like PayPal, Venmo, and store-specific gift cards illustrates how enterprises are taking control of their money transfers to reduce transaction fees and improve decision making by owning their payments data. A B2B Payments Ecosystem functions as a closed-loop system, allowing companies to deploy Venmo-like capabilities to streamline payments among customers, partners, vendors, and employees. 

Trend no. 2 – Account-to-account payments 

Account-to-account (A2A) payments are direct electronic fund transfers from the buyer’s bank account to the seller’s bank account. In the US, the Automated Clearing House (ACH) settles funds between the banks, which adds complexity through an intermediary. With a B2B Payments Ecosystem, enterprises can deploy A2A payments for themselves by integrating capabilities directly into their Enterprise Resource Planning (ERP) system or accounting software, resulting in lower transaction costs and faster settlements. 

Trend no. 3 – Supply chain finance 

Supply chain finance (SCF) improves an enterprise’s financial stability through financing facilities that allow businesses to adjust payment terms that best fit supplier needs. These solutions ensure the uninterrupted delivery of goods and services and the preservation of cash flow throughout the supply chain. A B2B Payments Ecosystem covers many components of SCF, enabling rapid access to cash, faster settlement times, and tighter relationships between buyers and sellers.

How a B2B Payments Ecosystem works 

All parties that enterprises work with – whether suppliers, vendors, employees, B2B clients, or consumers (B2C) – set up accounts using a comprehensive financial services technology platform like Alviere. Accounts include full-featured banking functionality to facilitate integration into existing financial processes and an existing ERP, invoicing, or CRM system. 

This platform allows enterprises to send and manage global money transfers. For example, an Airbnb Host can be paid by Airbnb for a recent stay, instantly have funds settled in their Airbnb account, and have a remittance sent to a supplier – all within minutes and through one consistent customer experience. 

With Alviere, the core component of these capabilities is the Alviere Proprietary Ledger. As payments flow from customer to enterprise to vendor, all monetary flows are automated, managed, and recorded through this single digital ledger. This simplifies payments management and reduces payment settlement times significantly. 

The era of payments autonomy is here 

Today’s technology allows enterprises to seize control over their supply chain payments and free themselves from the constraints of traditional banking institutions. Adopting a B2B Payments Ecosystem facilitates direct management of global money transfers, accelerates settlement times, and reduces overall costs. 

With this newfound agility, enterprises are empowered to navigate complex global marketplaces by reshaping their payments processes towards a more efficient and cost-effective future.

This article was first published in The Paypers' Embedded Finance and Banking-as-a-Service Report 2023, which is the latest comprehensive market overview and analysis focusing on the key products and players within the Embedded Finance and BaaS ecosystem. 

About Pedro Silva

Pedro is a co-founder, President, and Chief Operating Officer of Alviere, as well as the chief architect of its technology. Pedro leads all product, development, quality assurance, implementation, and cloud infrastructure. 

About Alviere

Alviere’s Embedded Finance platform allows any organisation to integrate financial products and services into their existing offerings. Alviere’s platform offers a customisable range of branded financial products, including accounts, cards, payments, global money transfers, and crypto services. As a regulated financial institution, Alviere prioritises compliance, security, and fraud prevention.