There are opportunities amidst chaos.
that Quote, From Sun Tzu's “The Art of War” war,” dates back to the 5th century B.C..
But it is equally relevant today, as businesses around the world seek to identify and capture opportunities against a backdrop of changing macro and geopolitical uncertainties.
Amid these market fluctuations, businesses are looking to payment companies for solutions that enhance efficiency and digitization.
that's what Dean M. LevittFounder and CEO of boost payment solutionspoke to PYMNTS CEO Karen Webster in our series “Payment Next Steps: A Quarterly Scorecard.”
“Companies want two things,” Leavitt says. “One is for cross-border payment mechanisms that are cost-effective and efficient for paying overseas suppliers. That is a clear desire at the corporate B2B level. and the widespread digitization of how they receive their rewards.”
Streamline operations and reduce costs by prioritizing digitizing your payments workflow. Company priority areasregardless of macro background.
“There is a lot of confusion when it comes to payments, especially for very large B2B payments where you may have hundreds or even thousands of invoices with hundreds of related line item details. There's confusion,” Leavitt said. “…large companies in both countries… AP [accounts payable] and AR [accounts receivable] Businesses are looking for ways to automate and digitize these processes and also reduce costs. ”
Payment modernization brings certainty
as first quarter of this year Business that fades into memory find yourself reflecting About the events and decisions that shaped our interactions with customers and the broader market.
Leavitt emphasized that the health of the consumer market often serves as a leading indicator for B2B activity. As the consumer market flourishes, B2B payments are proliferating, highlighting the importance for companies operating in the B2B space to stay on top of consumer trends.
While various sectors performed well in the first quarter, Levitt noted subtle changes in spending patterns, including slight declines in utilities and communications. However, he emphasized the resilience of B2B spending, noting that while B2B spending is less cyclical than consumer spending, it is still subject to seasonal fluctuations. Industrial manufacturing has emerged as a sector witnessing growth, indicating the evolution of market dynamics for payment companies. There is a need to comply with.
“it is, gradually “The need to digitize payments is clear to CFOs and other financial professionals, as well as buyers and suppliers alike,” Levitt said. “They know if they can cut costs or redeploy. Human Resources Departmentif They are The more commonly you can automate payment processes, the less human error there will be and the faster you can receive payments. ”
Efficient payment mechanisms are increasingly contributing to fostering trust and reliability between buyers and suppliers.He said.
“Especially for suppliers with working capital constraints, the deadline by which they receive payment is critical,” he added. “…there is a closer relationship with customers so they can pay faster and more efficiently.”
The importance of B2B payments optimization
Companies are looking ahead to the rest of the year. There is great uncertainty surrounding interest rates. Levitt pointed to the potential impact on commercial card issuers, which need to align their cost of capital and lending practices.
Leavitt noted that while the direct impact on buyer-supplier relationships remains small, the broader economic uncertainty highlights the importance for payments companies to monitor market trends.
The key to monitoring important Themes and trends are usage of Insights from transaction data enable companies to make informed decisions, identify emerging trends, and anticipate market changes.
“Data is be super important thing Dear all our partners, our distribution channels and customers,” Levitt said. “Buyers and suppliers look to us because we understand the flow of transactions and we disaggregate data in ways and formats that make it easy for partners and clients to bring it into their world. This is because it has become use that. “
Looking ahead, Leavitt said the watchword for enterprise business will continue to be “Steady Eddy” as companies navigate evolving landscapes.
“Most of our buyers very large It’s a company,” he said. “Most of the expenses are we promote throughout a particular year based on It is not a last minute purchase as it is based on an existing contract. We love the boredom of that growing up. … Keep it going, keep it flowing, keep it growing. ”
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