This quarter I’ve been looking at how advancements in financial technology are changing the nature of the $2 trillion global payments ecosystem. As I’ve written previously about financial inclusion, I believe capital is the world’s universal language and I’m eager to get ahead of how and where the money is flowing to see what opportunities exist therein. I’m especially interested in payments infrastructure because it’s ubiquitous and makes for a great business.
Consumer payments is a well-worn track with robust infrastructure thanks to the likes of Visa, Mastercard, Amex and innovative challengers like Square and Stripe. But what about B2B payments, what about the trillions of dollars that flow from one company to another? Or a company to a person? Yes, Bill.com but where is corporate Venmo? Should that exist?
Comparatively, today’s corporate payments infrastructure is buried in legacy systems at the bottom of techosaurus-rexes like Fiserv, IBM, SAP, and Oracle. They are often managed in spreadsheets by number crunching controllers, good ‘ol fashioned human-power. Newish corporate payments solutions like Bill.com and Freshbooks have cropped up to attempt to solve invoicing, accounts receivable and reimbursement. But compared to user experience advances in consumer payments, it’s only a matter of time before B2B payments start to get some innovation love.