4 big payment trends from BillingTree’s marketer

CUs that know what’s going on will be better poised to keep up.

With a new year comes new resolutions, disruptors and trends. This will especially ring true in the payments space, which boasts one of the biggest growth markets in the world: fintech. Research estimates that global fintech solution usage is currently at 33 percent and is expected to increase to 52 percent in 2018. To keep a big picture perspective, credit unions will want to look at four key technology developments in 2018.

1. Business-to-business payments are finally going digital. B2B payments are perhaps further behind the fintech curve than they should be. This is often attributed to the complex nature of these payments—most involve multiple stakeholders, are usually attributed to purchase orders and budgets, and are managed manually. The check is still the most common method of payment acceptance in U.S. B2B payments, but only just. The Association for Financial Professionals found that in 2004, 81 percent of B2B organizations paid by check, but by 2016 this number had shrunk to 51 percent.

The U.S. government has already mandated that in 2018, all invoicing for business-to-government payments will be electronic-only. This is bound to have an effect on the B2B market as a whole. In 2018, expect more CFOs to begin to realize the efficiency benefits of digitizing B2B payments.

 

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