Richard Ransom, Head of Corporate Solution Consulting, UK, EU, ROW, Bottomline analyses what are the trends and priorities that define B2B payments in 2025.
The business payments industry faces big decisions and pivotal moments in 2025. Rapid technological change, evolving B2B payment needs, and mounting regulatory pressures are restructuring the industry so fast that it can be difficult to keep pace.
This makes 2025 the most crucial year since 2020 for adaptations in B2B payments.
When I examine key areas to which businesses must adapt to remain competitive, secure, and efficient, I sense a handful of trends and priorities will define the year ahead.
Account-to-account (A2A) payments are set to become a cornerstone of the payments ecosystem. In fact, recent Juniper Research predicts the volume of A2A payments will rise from 60 billion in 2024 to 186 billion by 2029, an increase of 209%. By bypassing traditional card networks and payment processors, these transactions offer faster settlement times, reduced fees, and greater transparency. This efficiency makes them an attractive option for businesses. However, the challenge lies in educating stakeholders about the distinctions between A2A payments and other methods, such as virtual cards. Businesses must clearly communicate the benefits of this form of B2B payment, particularly in regions where traditional payment methods are deeply entrenched.
Virtual cards continue to play a vital role as an option in the payments mix, offering unique advantages for specific use cases. These digital tools provide faster revenue realisation and valuable data insights for banks and merchants. They are particularly effective in areas like corporate travel and vendor payments, where their flexibility and security shine.
‘Virtual cards are a win-win for both banks and merchants. They speed up revenue collection and provide a treasure trove of data insights that can help businesses make smarter decisions’, as my Bottomline colleague Jamie DelMedico recently said.
To maximise the potential of virtual cards, businesses should focus on targeted applications that address the unique needs of their operations.
As digital payments increase, so too does the risk of fraud, compounded by the constant evolution of fraud vectors. Protecting sensitive bank account data is a top priority for 2025, and payer verification emerges as a critical tool in this effort. This process ensures the security of transactions while safeguarding payees, vendors, and merchants.
Fraud prevention strategies must evolve alongside the threats they aim to combat. Businesses must invest in robust verification systems and fraud detection tools to build trust and protect their operations.
In a recent podcast with Jamie DelMedico, he also calls out that ‘Fraudsters are getting smarter, and businesses need to stay one step ahead. Payer verification isn't just a nice-to-have anymore. It's a must-have for protecting your bottom line’.
Global adoption of the ISO 20022 standard will revolutionise financial messaging. This standard enhances transparency, improves fraud management, and streamlines cross-border payments. While its immediate impact will be felt most acutely by banks, the benefits will ripple across all payment transactions around the world.
The challenge for financial institutions lies in adapting legacy systems to align with ISO 20022. This will require new approaches and partners. Those who successfully implement this standard will be better positioned to meet changing market demands. From a corporate perspective, companies should start preparing to meet the data requirements of ISO messages as dictated by their bank.
Real-time payments are no longer a luxury; they are an expectation. Businesses demand instant access to funds, and financial institutions must deliver. However, the rise of real-time payments (projected to reach USD 58 trillion by 2028, says The Clearing House) brings with it new challenges, particularly in the realm of fraud prevention. The concept of real-time fraud, where funds are stolen almost instantaneously, makes it essential for businesses to invest in advanced and readily available fraud detection and prevention measures.
Embedded finance is transforming the way businesses interact with their customers, including in the business payments space. By integrating financial services directly into platforms and ERPs, companies can create seamless and intuitive user experiences. This approach not only enhances user satisfaction but also opens new revenue streams. Meanwhile, the digitisation of payments continues to revolutionise the industry. From tokenisation to real-time fraud detection, digital payment solutions enable businesses to operate more efficiently and securely.
The payments industry is global, though regional nuances play a significant role in its future. For example, Europe has been a leader in tokenisation and real-time payments, while the US continues to grapple with the challenges of legacy infrastructure.
Understanding regional differences is crucial for businesses looking to expand their reach and deliver solutions that resonate across diverse markets. By tailoring strategies to unique regional needs, companies can position themselves for success on a global scale.
The new year has begun and promises to be transformative for the payments and finance sectors. To thrive in this dynamic environment, businesses must embrace innovation, prioritise security, and maintain a customer-centric approach.
Key priorities for the year ahead include adopting A2A payments, leveraging the benefits of virtual cards, and implementing robust fraud prevention measures. Additionally, adopting ISO 20022 and the continued digitisation of payments will be critical for staying ahead of the curve. The future of business payments and finance is bright, and 2025 offers a wealth of possibilities for those willing to innovate, adapt, and embrace change.
About Richard Ransom
With over 25 years' experience working for vendors, banks, payment schemes, infrastructure providers, and as a specialist consultant, Richard Ransom has gained extensive experience in the solutions to solve the ever-evolving issues surrounding business payments. His specialties include domestic ACH, cross-border payments, real-time payments, Swift, B2B payment fraud, and emerging business payment methods and innovations in the payments and cash management space.
About Bottomline
Bottomline helps businesses transform the way they pay and get paid. With over 35 years of experience moving more than USD 10 trillion in payments annually, Bottomline is dedicated to reimagining business payments and delivering solutions that add value to business and financial institution customers globally.
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