Stripe Unveils B2B Payments that Mirror the P2P Experience
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The rise of embedded finance has led businesses to expect payments to fit seamlessly into the platforms and workflows they already use. Yet business-to-business payments often remain time-consuming and costly. Stripe is looking to simplify the process with a service that resembles the consumer peer-to-peer payment experience. Businesses could search for a vendor's profile and transfer funds via the Stripe Pay plug-in. For companies that lack a recipient's full payment details, Stripe also offers a business directory. "Stripe is trying to make paying another business as easy as sending money to a handle," said Brian Riley, Director of Credit at Javelin Strategy & Research. "Businesses can identify recipients through their Stripe profiles instead of entering traditional bank details. The real headline may be 'free' not 'instant,' as Stripe Pay is advertising these business-to-business transfers with no transfer fee." Several trends are driving demand for better B2B payment solutions. The growth of vertical software-as-a-service platforms has given businesses of all sizes access to industry-specific tools, with seamless payment acceptance central to the model. Meanwhile, the consumer payments experience has raised expectations for B2B transactions to be digital-first and easy to use. Beyond convenience, payment efficiency has implications for cash flow and working capital...
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