Modulr is a Business Reporter client

The gap between consumer and B2B payments is widening. Consumer payments are now quicker than ever, with less friction and a better user experience.

Business payments, by contrast, still rely on manual processes and fragmented systems. This is due in large part to the increased complexity of B2B payments, but the results are still greater cost, delay, and operational drag that only compounds as businesses scale.

This is something business leaders are acutely aware of. More than 90 per cent recognise that improved payment processes could help their business grow and operate more efficiently, yet fewer than one in five are automating payments.

Moving from knowledge to action

Why are business leaders slow to act when it comes to automating payments? Myles Stephenson, Founder and Chief Executive Officer of Modulr, puts it down to two things. First, payments are often seen as an administrative issue rather than a strategic one; a back-office process to be managed rather than a lever for growth. Second, many businesses are simply unaware that platforms exist to solve the problem for them.

Getting it right, Stephenson argues, means thinking about automation differently. Rather than looking at digitising or modernising one step in the process, organisations should look to build automation into their core business processes end-to-end. This means integrating payments into the platforms businesses already use, including payroll systems, accounting software and enterprise platforms, so that money movement becomes scalable.

And scale is where the commercial case becomes clearest. When a business grows – meaning more transactions, more exceptions and more people required to keep things moving – manual payment processes create friction that multiplies. Automate properly, and revenue can increase without operational costs rising at the same rate. An accountancy firm running payroll for multiple clients, for example, can take on more work, hit tighter deadlines and redeploy people onto more strategic, higher-value tasks.

Real-world applications span industries. Modulr enables lenders to disburse loans instantly and receive collection payments efficiently through automated reconciliation. Within the travel industry, Modulr also automates how supplier payments are made across the booking lifecycle – protecting margin, controlling cashflow and enabling travel businesses to scale profitably.

A fast-evolving future

Looking further ahead, Stephenson sees a growing opportunity for both the B2B payments market and the businesses that take advantage of it. Digital currencies such as Stablecoin will make international settlement faster and cheaper. Agentic commerce, where AI acts on behalf of businesses and consumers, changes not only how businesses operate but the products they can offer as well. However, the innovation required to support that future needs to happen now, with customer experiences at the heart of everything, to fully maximise these opportunities.

To learn more, visit www.modulrfinance.com.