Pandemic sparks B2B payments adoption, Mastercard survey shows

76% of small businesses say that the pandemic has fuelled B2B payments adoption, according to a survey of 1000 small businesses in US and Canada conducted by Mastercard from 13th July to 17th July.  Among small-to-medium-sized enterprises (SMEs), 82% are changing how their business sends and receives payments, the survey found.

Fuelling the drive for digital payments, 50% of survey respondents said that they added a new digital service for the collection of funds while 26% had electronic invoicing to modernize business payments. Earlier this year, Mastercard had launched Mastercard Track Business Payment Service (BPS) which aims to expand and modernize B2B payments in North America.

In terms of security, speed and transparency, 57% of survey respondents said that they had increased their use of digital medium at the start of the pandemic for B2B payments. 70% of respondents said they were willing to invest in technology or upgrade their payments system.

“With cash flow more critical than ever, we’re seeing an accelerated shift to digital B2B payments as businesses of all sizes look to safeguard their operations today and prepare for the future,” said Ron Shultz, executive vice president, New Payments Business, North America at Mastercard.

The survey had 1000 small business respondents, 500 each from the US and Canada. Small businesses herein are referred to as a business with fewer than 100 employees and annual revenue between $50 thousand to $1 million.