Building an owned payments ecosystem without relying on traditional banks is a complex but achievable strategy. It requires finding the right embedded finance partner to access financial products, ensuring the ability to process transactions, manage funds, and provide financial services alongside guaranteeing regulatory compliance and security.
A B2B payments ecosystem means extending ownership of the payments process for better visibility, control, and more seamless transactions. Key attributes include payment acceptance, instant settlement, funds control, transparency for all money movement, and flexibility to add new payment options as required.
Here’s a step-by-step guide to building your own B2B payments ecosystem.
Select an embedded finance provider
The provider should be able to orchestrate various payment types across borders, including accepting debit and credit cards, ACH and EFT funds transfers. Depending on the business case, the payment ecosystem may also include wires, FedNow, RTP, mobile check deposit & P2P funds transfers.
Ensure appropriate licenses to secure regulatory approval in regions of operation, which can include licenses for issuing and managing digital funds, Payment Institution Licenses to process transactions, and money transmitter licenses (MTLs) for handling P2P payments.
The provider should also manage navigating initial and ongoing compliance requirements like PCI DSS, AML, and KYC regulations.
Integrate accounts and wallets with existing payments infrastructure
Embedded into existing workflows, the payments ecosystem integrates into backend payment systems. Via embedded finance APIs, systems including order management, ERP, CRM, and client apps are integrated into the payments ecosystem. The payment platform is branded for seamless user experience across suppliers and partners.
A B2B Payments Ecosystem augments many supply chain finance solutions. Alviere can work with your enterprise to identify how a B2B Payments Ecosystem could complement or replace existing systems for the most efficient solution.
Create a closed-loop ecosystem
Throughout the supply chain, funds flow from account-to-account vs bank-to-bank. So in the case of an auto manufacturer, suppliers are given accounts on the manufacturer-owned payments platform. Money moves from manufacturer to supplier account with complete control by the manufacturer. These money movements incur no fees nor latency. Cash flow is managed with complete transparency.
A single digital ledger tracks all movement with complete traceability for real-time cash flow management and audits.
Suppliers manage, spend, and transfer funds like a traditional bank account, including a debit card for ease of use. And, as funds are held until removed from the account or wallet, the platform owner accrues all interest on the held funds.
Ensure trust and security
Distributing payments across a B2B payments ecosystem requires the strictest adherence not only to applicable regulations, but also to the highest security protocols. The embedded finance provider should ensure the most advanced security protection, including proactive measures, regular audits and security certifications.
By combining regulatory compliance and embedded finance, enterprises can build a self-sufficient payments ecosystem that eliminates the dependency on traditional banks while providing a secure, efficient, and seamless experience.
Pay suppliers, contractors, or partners instantly within ERP, order management, CRM, and customer applications through APIs. With a global financial ecosystem embedded into existing workflows, drastically reduce costs, speed up settlement times, and fully control and optimize funds.
Own your global money movement.
