AI, automation and embedded credit are redefining expectations, streamlining reconciliation, enhancing decision-making and introducing consumer-style credit options (like BNPL) into the B2B world, reshaping how businesses manage and move money.

FinTech and institutional innovations are driving this transformation, with API-first, cloud-native architectures enabling integration, real-time reconciliation and new revenue opportunities through embedded financial services.

B2B payments are evolving from fragmented, standalone processes to deeply embedded, automated systems within core business platforms (like billing and procurement software), reducing friction and operational inefficiency.

Since the inception of the paper check, B2B payments have traditionally gotten the short end of the stick when it came to subsequent innovations in payments.

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In the consumer world, advances like embedded payments are now part of the fabric of everyday life. Users tap their phone, settle bills on platforms like Uber automatically, and subscription services like Spotify and Apple TV continue to renew invisibly in the background. In many ways, payments are simply no longer “a thing” for every day commerce occasions. They have become invisible, unthinking even.

But in the B2B world, where transactions can often involve five- or six-figure invoices, extended payment terms and intricate compliance rules, the story has remained more complex. Traditional payment solutions have long functioned as standalone platforms. Businesses managed payments through bank portals, third-party processors or enterprise resource planning (ERP) extensions that often felt duct-taped together.

The most common results? Friction, latency and operational drag.

What’s changing now is a philosophical and architectural shift: payment functionality is increasingly being embedded directly into business applications like billing systems, procurement software, supplier portals and even customer relationship management (CRM) tools.

This shift is being driven by a wave of marketplace advances coming from FinTechs and traditional financial institutions alike. For example, on Monday (June 9), Santander UK launched a collaboration with payments technology firm Worldpay enabling the bank’s business, commercial and corporate customers to access Worldplay services such as eCommerce capabilities and point-of-sale solution.

Separate advances also include the recent news that OatFi has raised $24 million in a Series A round to build an embedded B2B credit network that integrates underwriting, origination and funding capabilities into B2B payment platforms within their accounts payable (AP), accounts receivable (AR) and commercial charge card workflows.

For CFOs, controllers and treasury leaders, understanding this evolution is becoming essential as the short end of the stick turns into a burgeoning enterprise payments stack.

Read more: The M&A Files: You Just Had an Acquisition — Now What?

Modern B2B Payment Stacks Are Designed to Be Embedded, Not Bolted On

For today’s back-office leaders, it’s no longer enough just to ask if a payment system “integrates” with an existing ERP system, or several. Instead, savvy CFOs are asking how deeply embedded it can be in their native workflows. The more seamless the integration, the more value finance and operations teams may be able to unlock.

This transformation is being driven by modern application programming interface (API)-first, cloud-native payment stacks. APIs allow for tight integration with enterprise software like SAP, Oracle NetSuite or Microsoft Dynamics. Payments can now be automatically triggered by invoice approval or a change in delivery status, with transaction data flowing back into financial ledgers in real-time.

Embedded payments can also reduce manual processes and errors. For example, a procurement team using a solution like Coupa could execute payments without ever leaving the system they use to manage vendors.

At the same time, SaaS (software-as-a-service) providers and marketplaces are increasingly monetizing through financial services, turning payments into a revenue stream by embedding banking or credit services natively.

The PYMNTS Intelligence report “Building Better B2B Relationships Through Payments Innovation” found that automation, virtual cards and digital payments are becoming cornerstones of B2B payments, with businesses increasingly recognizing their role in strengthening buyer-supplier relationships.

At the same time, separate PYMNTS Intelligence revealed that 50% of suppliers say onboarding a new payment portal is a top pain point; highlighting the importance of supplier enablement when it comes to B2B payments network digitization.

See more: For CFOs, the Tech Stack Is the Business Strategy

AI and Data-Driven Reconciliation Are Moving From Innovation to Expectation

Manual reconciliation has long been one of the most labor-intensive parts of B2B payments. Every week, finance teams match incoming and outgoing payments against invoices, purchase orders and bank statements — often across dozens of spreadsheets and siloed systems.

This is where artificial intelligence (AI) and machine learning are making their biggest early impact.

The PYMNTS Intelligence report “Smart Spending: How AI Is Transforming Financial Decision Making“ found that more than 8 in 10 CFOs at large companies are either already using AI or considering adopting it.

There’s also a growing role for generative AI. Emerging use cases include natural language interfaces for querying payment data (“Show me all invoices over $50,000 pending approval for more than 10 days”) and intelligent assistants that summarize payment histories or suggest next best actions for overdue accounts.

Perhaps the most disruptive frontier in B2B payments is the rise of embedded credit. Just as “buy now, pay later” (BNPL) revolutionized consumer checkout, a parallel model is emerging for B2B — albeit with some key differences. B2B credit underwriting is significantly harder than in the consumer world. It requires assessing business health, fraud risk, payment history and even supply chain dynamics — all in real time. Many of these platforms are building proprietary risk models, often trained on vast pools of transactional and behavioral data.

In tandem, middle-market firms in North America are improving working capital efficiency. A 2.5% rise in efficiency rates, captured by PYMNTS Intelligence, reflects not only enhanced processes but also a maturing understanding of how to leverage external financing tools.

Zoom out, and the shift underway is more than a set of software upgrades — it’s a transformation of the operating system that governs how businesses move money. Where legacy systems were rigid and reactive, modern B2B payment stacks are dynamic, intelligent and deeply embedded.