Virtual debit cards top priorities for FI B2B payments

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The success gap for financial institutions (FIs) seeking to resolve their customers’ business-to-business (B2B) payment issues is stark.

Although 66% of FIs perceive the ability to offer customers digital payment solutions to resolve B2B payment friction as “very” or “extremely” important, only 30% say their current solutions are “very” or “ extremely “effective in resolving B2B payment frictions,” according to “The New User Experience,” a PYMNTS and FIS collaboration that surveyed 311 financial institution executives.

Get the report: The New User Experience: Tracking the Consumerization of B2B Payments

This varies by customer type, with the portions of FIs serving cross-border payments customers, large corporates, and mid-market companies that consider digital payments very important to their customers being even more important.

To facilitate the consumerization of B2B payments, 64% of FIs are “very” or “extremely” ready to adopt new technologies. Another 24% are “somewhat” willing to do so.

Key digital payment innovations that FIs are currently pursuing include the ability for corporate customers to issue virtual debit cards to their end customers, cited by 84% of FIs, and data sharing between Accounts Payable (AP) and Accounts Receivable (AR) for automatically net invoices, cited by 82% of FIs.

Additionally, around three-quarters of FIs indicate that they are currently working or planning to work on several other digital solutions for their corporate clients, including a single view of cash for cash flow management and forecasting, instant issuance of digital cards to mobile wallets for managing business expenses, automatic reconciliation of payments and invoices, possibility for recipients to choose their method of payment and virtual cards to make payments,

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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