3 Tips for Choosing the Right B2B Payment Method From Industry Execs

Persistence should be rewarded.

But when it comes to the long-standing persistence of both buyers and suppliers relying on checks for their B2B payments, there is no reward — only lost opportunity.

While checks may be familiar to traditional businesses happy enough with the way things have always worked, they also carry with them significant inefficiencies and even vulnerabilities.

As the pace of business accelerates, the demand for more versatile, secure and efficient B2B payment methods will only grow with it. There is an equal need for B2B players to consider adopting and accepting multiple payment methods, with a particular emphasis on digital payments.

For companies entrenched in traditional payment practices, the transition to a more digital payment ecosystem may seem daunting. However, the process can be approached strategically to minimize disruption and maximize benefits.

Above all, when deciding on the right digital B2B payment method, the emphasis should be on these three factors: seamless integration into existing systems, strong security and compliance controls, and ensuring that the payment options being provided are what your customer base prefers.

Read more: Digital B2B Payments Turn User Experience Into a Superpower

Beyond Checks: The Case for Multi-Method B2B Payments in a Digital Era

Despite the rise of digital solutions, checks remain a staple in the B2B payment ecosystem.

“B2B payments haven’t evolved much from the modalities that dominated the landscape 40 or even 50 years ago,” Boost Payment Solutions Chief Operating Officer Illya Shell told PYMNTS.

But checks require time to be mailed, received and processed. This delay can lead to cash flow challenges, especially for businesses operating with thin margins, particularly given that the manual processing of checks involves labor, paper, postage and bank fees.

In contrast, digital payments can be processed within hours, if not minutes, reducing the time it takes for suppliers to receive funds and allowing buyers to better manage cash flow.

“Our clients care about driving business results and analytics around understanding the value and transparency of every transaction. They want more automation, as much as possible, and they want no fraud,” Ernest Rolfson, founder and CEO of Finexio, told PYMNTS.

“We are laser focused on destroying the check, eliminating fraud risk and delivering more card,” added Rolfson, noting that “there are so many businesses now that are just still learning about virtual card. It is the fastest growing payment method.”

In 2024, more than 80% of executives say they’ve lost business because of a payment process miscommunication. More than half say it’s happened on more than one occasion.

“The amount of paper that is still passed around in the B2B space continues to stun me, and it’s somewhat by choice, but more and more, I think businesses are looking for a better way,” Shawn Cunningham, managing vice president and head of Capital One Trade Credit, told PYMNTS last year.

PYMNTS Intelligence has found that automation, virtual cards and digital payments are becoming cornerstones of B2B payments, with businesses increasingly recognizing their role in strengthening buyer-supplier relationships.

Read more: Building Better B2B Relationships Through Payments Innovation

The Shift Toward Digital Payments

Digital B2B payment methods offer numerous advantages over traditional checks. They are faster, more secure and more cost effective. At the same time, many are designed to integrate seamlessly with modern enterprise resource planning (ERP) systems, enabling automated reconciliation and providing real-time visibility into financial transactions.

While digital payments offer clear advantages, the business environment is diverse, and a one-size-fits-all approach may not suit every buyer or supplier. Embracing multiple payment methods — including checks, digital payments and emerging options like cryptocurrency — can be a strategic move for both parties.

There will likely be an increasing number of providers broadening their payments services for buyers to help hasten the shift away from the paper check, Chris Wyatt, chief strategy and product officer at Finexio, explained to PYMNTS. He said the use of virtual cards will proliferate and be tied to ERP and accounting software so that reconciliation is automatic and error-free.

Clinging to a single payment method, particularly checks, may no longer be the best strategy for buyers and suppliers. Embracing a variety of payment options — especially digital payments — offers flexibility, security and efficiency that can significantly enhance business operations.

By strategically adopting multiple payment methods, companies can not only streamline their payment processes but also strengthen relationships, reduce costs and position themselves for future growth.

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