The way businesses pay and get paid is still evolving. Complex, manual systems continue to be replaced by smarter, more automated and integrated tools that save time, generate cash back, cut costs, and improve security.
As we turn the page on another year, I want to delve deeper and explore several key trends reshaping business payments and how they can impact organizations. I’ve pulled these themes from thousands of hours talking with businesses, fintechs, card brands, vendors, and others in the B2B payments space this past year.
Embedded Payments: Built into Your Workflow
Imagine making a payment without having to leave the platform you’re already using. No switching systems, no extra steps. That’s the magic of embedded payments.
By weaving payment functionality directly into tools like ERPs or procurement systems, businesses can speed up processes, reduce errors, and gain better control over cash flow. Partners of our business payments network Paymode, for example, get to offer a familiar, branded experience to customers.
How does this work in practice? Bottomline simplifies the payment experience for our partners’ end-users in four steps:
- Their customers send payment instructions to their regular systems as usual.
- Partners then send all data via API to our Paymode network to facilitate payments.
- Paymode processes the payments to suppliers and handles any exceptions.
- Payment data and rebates flow back through the partner’s systems, which display payment details back to the end user.
For accounts payable teams, this means fewer headaches and more time for strategic work. Suppliers, meanwhile, get paid faster and can focus on maintaining and strengthening their customer relationships. Those benefits are why embedded payments are set to become the norm, making every step of the payment process feel seamless in a way that wasn’t possible previously.
Vendors already using Paymode are familiar with Premium ACH and virtual card, two of the signature payment offerings for Bottomline. New suppliers opt-in to receive these payments because they offer rich remittance details and process efficiency for their Accounts Receivable (AR) function. Vendors get AR data when and how they want it via formats they prefer, scheduled reports, live payment trackers, and more.
AI: Your Secret Weapon for Smarter Payments
Artificial intelligence has moved from a buzzword to a familiar ally for businesses, especially as it relates to payments and payment protection. It’s helping companies detect fraud before it happens, reconcile accounts in record time, and even forecast cash flow with precision.
AI shines by spotting patterns in mountains of data that humans can’t process quickly, and supplements the fraud prevention powers and automation offered by solutions and experts today. It flags issues like duplicate invoices or unusual transactions, reducing risk and saving money. For Bottomline, for example, machine learning capabilities allow for steadily improving accuracy when ingesting and reading invoices.
AI’s full range of applications are still being developed and understood, but businesses should expect its role in AP and cash management to grow.
Software as a Service Payment Platforms: Flexible Tools for a Changing World
Gone are the days of archaic and cumbersome on-premise payment systems. SaaS platforms have taken over, offering the flexibility businesses need to adapt quickly to change. These cloud-based solutions can handle growing payment volumes and keep operations running smoothly, even as markets shift, and business needs evolve. They can be rolled out as white labeled solutions, connected to embedded solutions, or accessed directly through a software provider.
Another win for SaaS? Automatic updates. Businesses don’t have to worry about falling behind on compliance or missing out on new features. Add in advanced reporting tools that give real-time insights, and it’s clear why we’re nearing all-encompassing adoption of SaaS.
Vendor Onboarding: Building Relationships with Trust
The first step to a successful B2B partnership is a smooth, secure onboarding process for vendors. With more complex supply chains and growing fraud risks globally, businesses can’t afford to cut corners here.
Modern onboarding tools use automation supplemented by expert reviews to check vendor details, verify compliance, and unearth potential red flags—all in a fraction of the time it would take if everything was done manually. These capabilities and expertise build vendor trust from day one and set the stage for strong, lasting partnerships. As fraud threats grow, secure onboarding is no longer a nice-to-have; it’s essential.
At Bottomline, for example, enrollments are matched against over 300 data points to ensure a vendor is who they say they are, and no vendor can receive a payment until they are automatically reviewed and their details are looked over by an experienced team of in-house fraud prevention experts. Bottomline keeps the Paymode network secure by blending advanced technology with 15 years of experience fighting fraud.
Personalized Payment Terms: Flexibility Wins
What if you could customize payment terms for every supplier relationship? That’s becoming the expectation as businesses prioritize flexibility to strengthen partnerships. Early payment discounts, extended terms, or tailored schedules offer personalized options that create win-wins for both buyers and vendors. At Bottomline, we have clients who offer payment via Paymode within 10 days of invoice receipt or within 45 days if the vendor insists on a check payment, driving adoption of more convenient, secure electronic payment types.
Businesses benefit with more control over their cash flow, better predictability, and stronger supplier loyalty. Advanced analytics tools are helping companies break down vendor data and craft payment terms that make financial sense for both parties.
Security and Compliance: No Room for Mistakes
Cyberattacks are on the rise, and regulators are paying close attention. This makes enhancing security and compliance for payments more critical than it has ever been. Businesses are adopting tools with built-in safeguards like encryption, tokenization, and fraud monitoring to protect sensitive data.
Compliance is equally important. Navigating global regulations can be daunting, but robust tools make it easier, ensuring businesses stay on the right side of the law in any locale where they do business without wasting resources. In a world where trust is everything, prioritizing security and compliance is non-negotiable, given its potential to protect not just data and money, but also a company’s reputation.
Looking Ahead
The future of B2B payments is exciting—and full of opportunity. Embedded payments, AI, SaaS platforms, secure onboarding, personalized terms, and rock-solid security are shaping a smarter, more efficient landscape. The trick is figuring out where to spend your time and resources in 2025 and beyond to drive the business forward and realize your target gains in efficiency, security, and cost savings.
At Bottomline, we’re here to help businesses embrace these changes with solutions that simplify complexity and drive growth as they embrace these solutions for better payments and bigger results.