It was only (relatively) recently that B2B payments finally secured significant attention and investment from innovators. A notoriously clumsy, friction-filled industry, B2B transactions must forge new paths to boost efficiency as businesses demand global solutions, speed and transparency.
Investors are paying attention to that need, and are working to back the startups that develop solutions with these goals in mind. This year is expected to be a big one for B2B FinTechs in terms of investor appetite, too: Last month, analysts from American Banker highlighted B2B payments as a key area of FinTech to earn investment this year, citing Accenture data that suggested banks could generate $11 billion in new revenue streams by 2020 through financial services for the small- and medium-sized business market.
“Toward the end of this year, we started to see more of a shift in investment toward the B2B side,” said Reetika Grewal, Silicon Valley Bank’s head of payments strategy and solutions. “There’s big money being thrown into the B2B space. We’re seeing a lot of new company formation around the B2B payment space in a way we haven’t seen before. That’s one trend we’ll see a lot more of [in 2018].” Read more here