Small Businesses Leverage FinTech to Close Digital Transformation Gap

Small and medium-sized businesses (SMBs) are confronting a widening digital transformation gap, especially in areas like back-office operations and payment functions, compared to larger enterprises, according to PYMNTS. This growing challenge is prompting many SMBs to adopt FinTech solutions tailored to their unique needs.

On September 3, UNIPaaS announced a partnership with American Express to provide small-business-focused invoice payment solutions. This is a step towards helping SMBs manage their payment processes with greater simplicity, affordability, and flexibility, which are critical for businesses with limited resources.

FinTech innovations are particularly beneficial to SMBs as they help automate processes like accounts receivable and accounts payable. Despite these advancements, only 5% of small businesses have fully automated their AR and AP processes. Brett Sussman, Vice President of Marketing at American Express, explained, “Businesses are worried about the investment in terms of time and resources.”

Embedded lending is another growing trend, offering SMBs the ability to access credit directly within platforms they already use. Jennifer Marriner, EVP of Global Acceptance Solutions at Mastercard, highlighted how embedded finance makes it easier for SMBs to manage cash flow and access financial services without the friction of separate applications.

These developments are paving the way for more efficient operations, better cash flow management, and ultimately a transformed business landscape.