If you missed the recent “The 2025 Pulse on B2B Payments” webcast, hosted by Ardent Partners and Finexio, it showcased how accounts payable is evolving from a back-office function into a strategic driver of efficiency, revenue generation, and payment security. Moreover, it’s critical to leverage the latest trends, AI innovations, and risk mitigation strategies to stay ahead. The session featured industry experts Andrew Bartolini, Founder and Chief Research Officer at Ardent Partners, and Ernest Rolfson, Founder and CEO of Finexio, who delved into the transformative trends shaping the landscape of business-to-business transactions.
In this two-part series, we provide some of the webcast highlights, including new research findings that highlight the importance of modernizing payment processes and the strategic value of accounts payable (AP) teams — as well as this link to the full event.
The Challenges and Opportunities of Digital Transformation in B2B Payments
In the evolving landscape of business-to-business (B2B) payments, organizations are increasingly recognizing the necessity of digital transformation. Despite the numerous advantages offered by electronic payment systems, several persistent challenges continue to slow down widespread adoption. As highlighted during the webcast by industry experts Ernest Rolfson and Andrew Bartolini, supplier enablement, security concerns, and organizational inertia remain significant barriers.
One of the most pressing challenges in adopting electronic payments is supplier enablement. Research indicates that 48% of accounts payable (AP) organizations report that their suppliers lack the technology or resources required to participate in electronic payment systems. Historically, onboarding suppliers onto digital platforms was both complex and costly, deterring widespread adoption. However, recent technological advancements have significantly lowered these barriers. Platforms have become more intuitive and cost-effective, and the integration of artificial intelligence (AI) has further streamlined the process of validating and enabling suppliers.
Despite these improvements, supplier reluctance persists due to security concerns and a lack of awareness. Convincing suppliers to transition from manual to electronic payments requires not only demonstrating efficiency gains but also ensuring robust fraud prevention mechanisms. Fraud remains one of the top concerns in B2B payments. Managing sensitive banking information and ensuring secure transactions is critical. However, security technologies have advanced considerably. AI-powered anomaly detection systems now offer enhanced capabilities for identifying fraudulent activities, providing an essential layer of protection for both payers and suppliers. Companies like Finexio have developed sophisticated platforms such as Finexio Shield, offering clients a higher level of assurance against fraud, beyond standard bank-level security.
The Role of Organizational Processes
Technology adoption is only part of the solution, however. Organizations must also address internal process inefficiencies. Many companies mistakenly believe they have achieved digital transformation because they utilize electronic payments. However, Rolfson pointed out that having multiple manual steps before and after the payment process negates the efficiency benefits. True digital transformation involves a fully automated, end-to-end process. Metrics such as the percentage of touchless invoices — invoices processed from receipt to approval without human intervention — are critical indicators of successful automation. Companies must track these metrics and set clear throughput targets to ensure continuous improvement.
Despite global advancements, manual processes still dominate. In the United States, approximately 60% of invoices are still processed manually or semi-manually. In contrast, Europe has seen a greater shift towards full electronic invoicing. This reliance on manual processes imposes significant costs on organizations. Industry estimates suggest the average cost to process a single supplier payment is around $10. Reducing this cost through automation — particularly AI-powered automation — can lead to substantial savings. AI and automation are game-changers in B2B payments. They offer enhanced efficiency, better cash management, and improved supplier relationships. AI systems help organizations optimize payment methods, reduce processing times, and improve cash flow visibility. For suppliers, these technologies provide transparency and predictability, reducing the frequency of payment-related inquiries.
Doing More with Less: The Forcing Function
AP teams today face increasing pressure to achieve more with fewer resources. This economic reality is a forcing function driving digital transformation. By leveraging advanced technologies, companies can significantly cut costs and reallocate human resources to more strategic activities. Finexio’s data shows that for every dollar spent on accounts payable, clients can achieve a 300% return on investment by transitioning to automated, electronic payment methods.
The future of B2B payments is undeniably digital. To remain competitive, organizations must fully embrace automation and AI technologies, not only to cut costs but also to improve supplier relationships and operational security. Companies that fail to adopt these innovations risk falling behind as their competitors leverage technology for strategic advantage.
With all that said, digital transformation in B2B payments is not merely about processing payments electronically; it is about creating an integrated, secure, and intelligent financial ecosystem. The combination of automation, AI, and robust security frameworks offers a promising path forward, ensuring that both organizations and their suppliers benefit from greater efficiency and transparency.
