Business-to-business payments, or B2B payments, may not seem like the flashiest topic in finance, but there is some pretty exciting stuff happening in this arena at the moment. Developing a deep understanding of the topic is a wise path for AP leaders who want to stay tuned-in to the times.
In this post we will share some of our knowledge with the hopes that it will help you develop a thoughtful approach to B2B transactions that can meaningfully improve cash flow and strengthen vendor relationships.
This post covers the fundamentals of B2B payments, the methods available, current trends shaping the industry and some tips for evaluating B2B systems.
B2B Payments Definition
A B2B payment is the transfer of funds from a buyer to a supplier for goods or services. Payments can be one-time or recurring depending on the contract.
B2B payments differ from consumer payments in a few important ways. When someone buys a coffee, the transaction settles almost instantly. In the B2B world, payments often require multiple approvals and may take days or weeks to fully process. This added complexity is simply the nature of B2B transactions where larger sums, contractual terms and documentation requirements come into play.
Understanding these dynamics helps AP leaders make informed decisions about which payment methods and processes work best for their organizations.
B2B Payment Method Trends
Most businesses rely on a mix of payment methods. Each comes with its own advantages and considerations.
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Checks: More than a 1/3 of B2B payments are still paid by paper check (about 33% to 40% depending on the study). Less than half of businesses have eliminated checks entirely, according PYMNTS Intelligence. Their staying power comes from familiarity and the fact that many vendors still prefer them. The tradeoff is processing time and manual handling.
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ACH payments have grown substantially and now represent the backbone of B2B electronic transactions. The National Automated Clearing House Association reported that the ACH Network processed 8.1 billion B2B transactions in 2025, up nearly 10% from the prior year, making it the network's most significant growth segment. ACH offers speed, security and lower processing costs compared to checks while maintaining a clear electronic record.
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Wire transfers handle the heavy lifting when it comes to dollar volume in B2B money transfers. Fedwire transfer value in 2024 was approximately $5.4 million, according to Federal Reserve Bank Services. Wire transfers remain the go-to method for high-value transactions where speed and finality matter, even as they represent a small fraction of total transaction count.
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Credit cards occupy a smaller but growing role in B2B payments. Processing fees typically range from 1.5% to 3.5% per transaction, with the average rate in 2025 sitting at 2.3%, which many vendors prefer to avoid. Still, a 2024 Visa survey found that 79% of small businesses use credit cards to facilitate business payments. Cards can make sense for smaller purchases, when rewards programs offset the fees, or when faster payment collection is a priority.
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Cash For most mid-sized and larger organizations, cash creates documentation and logistical challenges that make it impractical for regular use.
Further Learning: Wire Transfer vs ACH Transfer
5 B2B Payments Trends to Watch
Several developments are shaping how businesses approach B2B payments. Understanding these trends can help AP leaders plan ahead.
1. Digital adoption is accelerating
The shift away from paper is no longer a trend. It is table stakes. Two decades ago, checks dominated B2B payments. Today, finance teams treat them as a last resort. Real-time payments and digital invoicing have moved from nice-to-have to baseline expectation. Organizations that made the switch early report faster payment cycles and fewer errors. Those still clinging to paper are feeling the friction.
2. AI is transforming AP operations
Accounts payable used to mean stacks of invoices and manual data entry. That era is ending. AI now handles invoice capture, flags anomalies, and routes approvals without human intervention. Fraud detection has become proactive rather than reactive. OCR reads documents with near-perfect accuracy. The result: AP teams spend less time on data entry and more time on decisions that matter. Early payment discounts that once slipped through the cracks are now captured consistently.
3. Security remains a priority
Fraud attempts are constant. Business email compromise tops the list of threats, and checks remain an easy target. Virtual cards, by contrast, rarely appear in fraud reports. Electronic payment systems come with built-in safeguards: three-way matching, automated alerts for unusual activity, audit trails that paper cannot provide. For AP leaders, security is no longer a back-office concern. It is a board-level conversation.
4. Payment timing expectations are shifting
Late payments remain endemic in B2B. The downstream effects are predictable: strained vendor relationships, missed discounts, cash flow headaches. Automation changes the math. Organizations that digitize accounts receivable see payment delays shrink. Early payment discounts become attainable. AP leaders who optimize payment timing deliver measurable value, not just operational efficiency. Learn More
5. Integration matters more than ever
Payment solutions are only as valuable as the integration supporting it. Too many organizations discover this the hard way: the demo looked seamless, but post-implementation, staff still re-key data, month-end close still drags, and someone built a sprawling workaround spreadsheet that no one wants to own. When the integration falls short, automation just relocates the manual work. Purpose-built connections to specific ERP platforms deliver what generic connectors promise but rarely provide. Learn More
What to consider when evaluating B2B payments solutions
For AP leaders exploring new B2b payments systems, a few key factors can help guide the decision.
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Flexibility in payment methods. The best solutions support multiple payment types including ACH, checks and other methods. This flexibility allows organizations to choose the right method for each situation without being locked into a single approach.
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Approval workflows. Look for systems that offer customizable approval routing based on vendor, amount, department or other criteria. Strong workflow tools provide oversight and control while keeping payments moving efficiently.
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Security and compliance. Verify that any solution offers end-to-end encryption for digital payment methods, including at rest and in-transit encryption. Check fulfillment providers should offer support for Positive Pay for better security.
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Audit capabilities. A complete audit trail of payment activities, including user data, timestamps and approval history, supports both internal controls and external reporting requirements.
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Vendor expertise. Providers who specialize in accounts payable understand the nuances of the work. Their solutions tend to reflect real-world AP processes rather than generic payment functionality.
Conclusion
B2B payments may not generate the same excitement as other areas of finance, but the impact of getting it right is real. Efficient payment operations improve cash flow, reduce processing costs, strengthen vendor relationships and free up the AP team to focus on higher-value work.
For AP leaders, developing expertise in this area is a practical way to demonstrate strategic thinking and deliver results that matter to the business. The organizations that approach B2B payments thoughtfully tend to be the ones that operate with greater financial clarity and agility.
