▶️ Navigating the Future of B2B: Collaboration, Innovation and Risk Management | PYMNTS TV
The B2B payments landscape is undergoing a significant transformation, fueled by the growing collaboration between fintech innovators and traditional financial institutions. As businesses increasingly seek to digitize and globalize their operations, this strategic partnership is unlocking new opportunities to address longstanding challenges also felt by non-prime consumers.
Fintechs are leveraging technology to create tailored solutions that cater to the specific needs of industries like travel. The deployment of virtual cards, for instance, has facilitated seamless cross-border payouts, helping to alleviate the issues of cost, transparency, and tracking that have historically plagued cross-border transactions. Meanwhile, traditional banks are recognizing the value of these niche fintech offerings and are proactively forming alliances to integrate them into their product ecosystems.
This shift has opened the door for a more collaborative model, where fintechs and banks combine their respective strengths. While banks have historically operated in silos, fintech companies have specialized in providing innovative solutions tailored to the needs of underserved segments, such as small and medium-sized businesses (SMBs).
By partnering, these two entities are able to deliver a diverse range of customized, differentiated services to customers, positioning themselves for the future evolution of both B2B and B2C payments.
🎧 Bridging the Communication Gap Between Treasury and Payments with Debopama Sen, Citi Treasury and Trade Solutions | Glenbrook
Payments and treasury teams play complementary roles, with payments managing the customer journey and treasury overseeing cash flow and efficient fund management. Fintechs often have similar goals and seek bank partners who understand their objectives - an opportunity for treasury and payments professionals to collaborate on innovations in the evolving payments landscape.
Debopama Sen, Head of Payments at Citi Treasury and Trade Solutions, joins us for this episode to explore how treasury and payments professionals can collaborate on opportunities presented by the evolving payments landscape.
📊 Financially Struggling Consumers Are Twice as Likely to Face Payment Declines
While overall payment declines have fallen from 18% to 12% over the past two years, 23% of paycheck-to-paycheck consumers with difficulty paying bills experienced at least one decline in the previous month - nearly double the average. These consumers are also much more likely to experience declines when making essential purchases like groceries, with 7.1% of their grocery payments being declined, 12 times higher than financially stable consumers.
There is a shift in the type of payments being declined, with debit card transactions now outnumbering credit card declines more than threefold. Consumers have better tools to manage credit card limits, while debit card declines are often unavoidable when funds are insufficient. As consumers adjust their spending habits, the use of credit cards for purchases has also declined across categories like groceries, retail, travel, and dining.
Overall, the data underscores the significant financial challenges facing paycheck-to-paycheck consumers, who are disproportionately impacted by payment declines, especially for essential purchases. This adds extra stress and burden to an already strained financial landscape for these households.
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