Rapidly evolving B2B payment types and the powerful capabilities of accounts payable (AP) automation are reshaping business payments.

During a recent interview, Bottomline Senior Vice President for Paymode Product Management Mike Jackson discussed the imperatives driving expansion in payments and financial automation, stressing the urgent need to do away with manual processes. That first step is often the most difficult.

"You're going to just stop writing checks. You are going to end manual data input," he said.

Jackson described a world where businesses no longer need to juggle multiple systems for different payment types. Instead, he sees the value and widespread adoption of unified solutions that manage various payment methods and needs, from large recurring B2B payments to cross-border compliance.

 

The Power of B2B Payment Networks

One major advantage of a modern B2B payment network is that you will likely discover many of your vendors have already been authenticated and joined said network. Jackson illustrated this with a consumer-friendly analogy: "Like a consumer, you say, ‘I want to pay my power bill,’ and you key in the name, and it does a search through the directory."

This simplification shows the drastic time (and typing) reductions achievable when setting up new vendors and initiating transactions.

Beyond operational efficiencies, there are clear financial benefits to adopting an advanced B2B payments network, especially one that uses ACH and offers transaction rebates to users. Rebates turn AP – long a pure cost center – into a potential revenue generator or, at worst, a “cost-neutralizer.” It’s a compelling incentive to modernize payment processes.

With financial fraud now rampant, Jackson also emphasized the strong security benefits of B2B payment networks. By moving away from paper checks and manual processes, businesses can significantly reduce exposure to many forms of payment fraud. These networks also take steps to authenticate and protect vendor account details, starving fraudsters of oxygen.

The effect of outdated systems extends beyond mere cost and inconvenience. Jackson pointed out that workers dislike rote, manual, time-consuming, error-prone tasks, and a 2023 study found that 96% of employees are unhappy with the tools they have to handle those tasks.

While enterprises often dominate discussions about financial automation, Jackson said the benefits also extend to small businesses. "There’s an opportunity for this to improve [SMB] processes and payments, too," he said, highlighting traits like scalability and adaptability. The ability to easily integrate with existing systems also saves strain on SMB budgets and time.

With a nod to seamless integration with popular ERP systems, he said, "If you're using Acumatica, or you're using SAP, QuickBooks, or Microsoft Dynamics—we have integrations into all of those."

 

Generational Shifts, B2B Consumerization, and the Future

Jackson spoke of a major generational shift happening now in the payments workforce.

 "The baby boomers are retiring... Millennials and Gen Z are coming in," he said.

It’s driving demand for technologically advanced but “consumerized” B2B platforms that resonate with the user experience preferences of digital-native workers. Yes, that impacts productivity. Jackson calls it “the gamification of B2B payments” – yet another digital inevitability.

Meanwhile, on the regulatory front, Jackson recognizes the challenges but also sees opportunity. "There's a lot of regulation in payments... but at the same time, there's a lot of innovation," he said.

Balancing compliance with innovation is crucial for the continued evolution of B2B payment solutions, and Jackson's upbeat outlook on B2B payments has much to do with recent partnerships and growth. Noting that another prominent bank recently joined Bottomline’s Paymode network, he predicts that Bottomline will “double our number of bank partners" with its suite of solutions.  

This expansion signals a growing recognition of the value that automated payment solutions bring to both financial institutions and their business clients. Jackson's insights portray a B2B payments environment that is unpredictable, which is why from new automation to fraud fighting and compliance, digital payment solutions are needed to navigate the complexity.

Businesses of all sizes are grappling with legacy systems, generational change in the workforce, macroeconomic forces, and a host of problems both immediate and yet to come. Adopting AP automation and payments automation is less of an option and more of a necessity for accounting and treasury teams, and as Jackson makes clear, choosing the right partner is essential.