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Industry roundup: 17 August

Challenger B2B payment providers to grow transactions by 42% by 2022

A study from Juniper Research has found that the volume of business-to-business (B2B) payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020; representing 42% growth. These vendors will account for 12.6% of B2B payments by volume in 2022. Despite the slow recovery elsewhere in the economy due to the pandemic, non-bank B2B payments will exceed 2019 volumes in 2021, showing how the migration from offline to online, and the need for greater efficiency, is helping non-traditional vendors.

As businesses recover from the pandemic, they are fundamentally reassessing their operations to maximise efficiency. As such, banks and traditional money transfer operators face a reckoning, pressed by newer, more innovative players offering more cost-effective solutions.

The research paper, titled B2B Payments: Domestic, Cross-border & Instant Payments 2020-2025, analyses 20 challenger B2B payment providers and examines their B2B payment offerings and digital innovation. The top three non-bank vendors identified by Juniper Research as innovative leaders were:

  • TransferWise
  • Veem
  • Currencycloud

The report says that these leading offer digital capabilities that are unmatched in terms of efficiency, cost and value; allowing them to rapidly gain market share and threaten established market structures.

The research also found that automation will be crucial in fixing the challenges faced by businesses in their payment processes. This automation must be enabled using open APIs, which can radically simplify sharing data between different systems. However, the report says that this automation will require a collaborative ecosystem to emerge, whereby B2B payments vendors integrate their systems with ERP and accounting packages, otherwise payment processes will remain highly manual and time-consuming. 

 

BMO connects to QuickBooks through API portal

Canadian bank BMO has completed the development of a new secure data portal in partnership with Intuit. The portal will allow business customers to share their BMO financial data with Intuit QuickBooks Online.

For customers who use Intuit QuickBooks Online, the data portal provides business customers efficient sharing of their BMO transaction data with Quickbooks Online and associated applications and use of this data to help them better manage and run their businesses. It is also designed to save small business customers time, without needing to navigate between their online banking and QuickBooks platforms.

The solution is currently being tested and piloted and will be rolled out nationally next year. The bank says that business customers will retain ownership of their data and have the ability to consent to which data will be shared.

 

FIS doubles applications covered by service level agreement

Financial technology firm FIS has said that it has doubled the number of cloud-based applications covered by its ervice level agreement (SLA), while reducing the designated service disruption period to as little as ten minutes.

Under the SLA, the company will issue financial credits to clients using selected FIS applications should those clients experience service disruptions caused by FIS lasting longer than a designated period of time. The SLA now covers 74 cloud-based solutions from FIS - more than twice the number as when the agreement was announced last year.

FIS has extended the SLA to cover additional US banking applications as well as selected Worldpay merchant solutions applications in the US and the UK. The service disruption periods designated in the SLA vary by application and range from 10 to 60 minutes, not including scheduled downtime or pre-planned maintenance.

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