B2B Digital Payments News

Increasing Momentum Behind Digital Adoption in US Supplier/Buyer Transactions Drives Finstro’s Expansion Into US Market

Increasing Momentum Behind Digital Adoption in US Supplier/Buyer Transactions Drives Finstro’s Expansion Into US Market

Leaning on experience in Australia, where B2B payments are over 90% digital, Finstro’s solution offers suppliers and buyers a new way to trade and drive business growth

Finstro, a technology-powered provider of trade credit and payment solutions for B2B commerce, is planning to capitalize on growing digital adoption momentum in the business-to-business (B2B) space as it rolls out its card solution and an integrated ERP solution designed to support the supplier/buyer trade relationship.

“We are confident that our proven technology, global infrastructure, and experienced leadership team will be at the forefront of this shift in the U.S. market, and we look forward to leveraging our deep experience to enable businesses to improve the way they trade and grow.”

According to a 2018 Goldman Sachs Global Technology Equity Research report, paper-based payment processes in U.S.-based B2B commerce accounted for ~70% of transaction volume, and cost businesses – many of them small businesses – more than $2.7 trillion in administrative costs. However, Finstro CEO, Brad Prout, notes that the past 15 months have seen a growing shift towards B2B digital payments in the U.S., and this has created a window of opportunity for Finstro’s well-tested business model to expand.

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“Since early 2020 businesses of all sizes had to give AR and AP management more attention as they navigated through the impact of the COVID pandemic. The adoption of digital processes in the order-to-cash cycles can create workflow efficiencies and reduce working capital to the benefit of both suppliers and their business customers. We expect to see these disruptive trends continue in U.S. B2B markets, and suppliers who adopt technology-driven solutions will have a competitive advantage when providing business customers with more flexible trade credit terms,” said Prout.

According to the Goldman Sachs report, global B2B payment flows are expected to climb to $200 trillion by 2028. North America makes up 20% of the B2B market globally, representing $26 trillion of payment volume.

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Furthermore, according to a 2020 survey by the Association for Financial Professionals (AFP), suppliers and businesses large and small are already realizing the benefits of electronic payments. Sixty percent (60%) of respondents said they are either very likely or somewhat likely to convert the majority of their B2B payments to suppliers from check to electronic payments.

“Without doubt we are at the early stages of a revolution in B2B trade when it comes to capital flows between suppliers and buyers, and this will mean huge opportunities for businesses of all sizes and in all industries,” said Prout. “We are confident that our proven technology, global infrastructure, and experienced leadership team will be at the forefront of this shift in the U.S. market, and we look forward to leveraging our deep experience to enable businesses to improve the way they trade and grow.”

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