Cash Flow 2.0: Smarter Treasury Strategies through Better Business Payments

Emerging payment networks are transforming the rules of commercial transactions, creating new opportunities for businesses to streamline their payment processes, according to PYMNTS. As these innovations take root, chief financial officers (CFOs) and treasurers are in a prime position to capitalize.

Dean M. Leavitt, founder and CEO of Boost Payment Solutions, told that FinTechs and platforms for accounts payable (AP) and accounts receivable (AR) are reshaping the competitive landscape, driving innovation, and improving efficiency. According to Leavitt, while payment infrastructures have largely remained unchanged, the processes surrounding them have seen significant advancement since 2009.

FinTechs have eased much of the friction associated with business-to-business (B2B) payments, giving rise to a competitive ecosystem where new networks are competing to be the preferred intermediaries in B2B transactions. Leavitt emphasized, “Competition drives innovation, and innovation creates expanded opportunities.”

One key evolution in B2B payments is the increasing flexibility of modern payment platforms, allowing businesses to tailor payment processes to meet their specific needs. The rise of card-based payments in B2B transactions exemplifies this shift. While cards were once used mainly for travel and entertainment expenses, they now play a crucial role in working capital management.

Despite the financial incentives, some suppliers remain skeptical of card payments due to perceived costs and complexities. However, Leavitt notes that once suppliers understand the true benefits, they are more inclined to accept cards. Cards also offer a more reliable cash flow than traditional payment methods, helping to reduce friction in AR processes.

Moreover, digitized payments reduce uncertainty for businesses, providing clarity around payment timing and costs, which allows for better decision-making. Leavitt stated that as interest rates drop, card transactions may see renewed emphasis, with financial institutions looking to boost interchange revenue.

For businesses, success will depend on staying informed about emerging B2B payment platforms and embracing new payment models to improve cash flow visibility and financial performance.

As Leavitt summarized, “The companies that succeed will be the ones that recognize the diverse needs of their buyers and suppliers and adapt their payment strategies accordingly.”