B2B payments for the middle market

There is a tectonic shift underway in the business-to-business (B2B) middle market payments landscape, with increasing numbers of service providers offering specialized products and services to address buyer/seller pain points. Traditional financial institutions may be particularly vulnerable to disruptive competition that they haven’t experienced in their core banking and lending services. Barriers to entry have largely been eroded by a combination of technology and disruptive business models that are making it easier for smaller players to do what only the larger banks were able to previously. Financial Institutions can and should tap into this new pathway for growth.

The large and thriving US middle market historically has been underserved in its (B2B) payments needs. As a result, many sellers and buyers are experiencing significant frustration with the B2B payments process. While financial institutions are increasingly targeting middle-market growth opportunities, they could do more to address the segment's payments pain points.