The 2020s have borne witness to some of humanity’s greatest leaps in technological innovation.
And many of them, from artificial intelligence (AI) to machine learning, have quietly been transforming payments.
But while the consumer side of payments has found itself flooded with much of this innovation — from embedded finance to open banking — the B2B sector has traditionally lagged in embracing the advances modernity offers.
“The B2B money movement space has not yet benefited from some of the real innovations,” Seamus Smith, EVP group president at FIS, told PYMNTS, noting that checks still account for “nearly 40%” of B2B payment volume in the U.S., even though they are prone to fraud and reconciliation errors.
However, this reliance on outdated methods presents a clear opportunity for innovation, particularly as a new wave of technology, automation and strategic focus is changing the landscape.
Smith said that with more companies actively working to replace manual payment processes with automated and secure electronic solutions, such as integrated payables and virtual cards, the B2B sector can achieve the same efficiencies and security benefits seen in consumer payments.
This shift, he added, is not only modernizing how businesses move money but is also redefining the role of the chief financial officer (CFO).
FIS CEO Stephanie Ferris encapsulates the financial lifecycle of money in the context of financial services with a compelling framework: “money at rest, money in motion, and money at work.” For his part, Smith said this holds true in the B2B payments world, too.
Money in motion refers to the movement of funds into and out of a business. Smith underscored the importance of making these movements seamless to ensure businesses maintain optimal cash flow.
Money at work relates to how companies leverage capital effectively, whether by reducing fraud or optimizing working capital. Smith said the right solutions allow businesses to put their funds to productive use.
Money at rest involves funds sitting in accounts, awaiting reconciliation or analysis. Smith said FIS equips businesses with tools to analyze these idle funds and make informed decisions on collections and pricing strategies to maximize productivity.
According to Smith, aligning B2B payment strategies with these principles can significantly enhance operational efficiency and security. Against this backdrop, he pointed to a pivotal shift in the role of the CFO: from a traditional focus on liquidity management and reporting to becoming a forward-thinking strategic leader. Payment modernization plays a central role in this evolution.
After all, modern tools, like FIS Revenue Insight, now enable CFOs to predict financial trends with greater certainty, allowing them to focus more on growth strategies than on administrative tasks like reconciliation.
Automation, Smith said, “allows the CFO to spend more of their horsepower thinking about the future and the growth of their business.”
He added that exception management — dealing with errors and unforeseen financial issues — often consumes disproportionate time and resources. By leveraging automation and AI, businesses can reduce aged receivables, shorten days sales outstanding (DSO) and boost working capital efficiency.
“Our Integrated Receivables product, for example, has reduced aged receivables by 20% and improved DSO by up to 15 days,” said Smith. He highlighted that automation also reduces resource utilization by 30%, allowing businesses to achieve better outcomes with fewer resources.
By automating key financial processes, leveraging AI for smarter decision-making and adopting secure payment solutions, CFOs can unlock new growth opportunities while minimizing risks.
However, Smith advised CFOs to approach AI adoption thoughtfully. Rather than outsourcing complex processes entirely to algorithms, CFOs should partner with trusted providers who understand how to use AI effectively.
He noted that today’s automation tools often struggle with variability in financial data, returning errors if data fields are not perfectly aligned. Large language models (LLMs), in contrast, can address this issue by recognizing patterns and validating invoices, even when the data is formatted differently.
Still, in an era where businesses must navigate global complexities and heightened competition, the ability to see into the future with greater certainty is a game-changer. For Smith, the integration of technology into B2B payments is not just about efficiency — it’s about creating an environment where businesses can thrive.
Yet he cautioned that fraud prevention remains a critical concern for CFOs, especially as manual processes like checks expose businesses to significant risks. Smith noted that 74% of fraud attempts in businesses are linked to checks. In contrast, secure electronic payments, such as virtual cards, see only a 3% fraud rate.
As B2B payments continue their transformation, innovation and strategy will play a central role in shaping the future. Companies that embrace automation, AI and modern payment solutions will be better positioned to navigate financial complexities and seize growth opportunities, Smith said. That’s why for CFOs, the journey toward payment modernization is no longer optional — it’s essential to remain competitive.
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