B2B Payments Are Being Remade in Gen Z’s Image

Here’s a wake-up call for B2B firms: Generation Z decision makers rising through the business ranks want their B2B purchasing decisions and experiences to be as seamless, and as digital, as possible.

For digital-native professionals, waiting 30 days for an invoice to clear via check is unacceptable. They expect real-time processing, automated reconciliation and seamless integrations with their enterprise resource planning systems.

Organizations that cling to outdated payment systems risk not only alienating customers but also deterring top talent.

This generational shift is forcing legacy organizations to rethink their payment strategies. For finance teams entrenched in old-school methods, this can be a tough pill to swallow. For businesses that embrace change, however, the move toward digital payments can help streamline operations, reduce fraud risks and enhance cash flow visibility.

The challenge, at its core, isn’t solely about generational friction — it’s the ability to evolve, integrate new technologies, and embrace a diverse workforce that spans multiple perspectives.

Read also: Manual Spend Management Is Disaster Waiting to Happen in Digital Era

User experience can make or break business relationships, so the expectations of Gen Z B2B leaders can be particularly exacting. Traditional payment methods like cash and checks aren’t just declining; they’re becoming extinct in the professional worlds of young generations.

“B2B transactions have traditionally had a slower approval process, and B2B players have been slower to adopt new technology,” Jennifer Marriner, executive vice president of Global Acceptance Solutions at Mastercard, told PYMNTS in an interview last year. “But what we’re seeing with a shift to digital is that there is now more data, more controls, stronger authentication coming into that B2B space, all the while bringing down the cost and improving the risk models. We’re definitely seeing on the B2B side a realization that there’s a way they can streamline their business…”

The PYMNTS Intelligence report “Tapping Into the Future of Payments” explored how the rise of digital payments, especially among young generations, is transforming the payment landscape, with 91% of Gen Z adopting digital-first payments. Gen Z’s payment preferences extend beyond their roles as consumers; they increasingly bring these expectations into the workplace.

“The next horizon over the next five years is truly in B2B payments,” Sovos Chief Technology Officer Eric Lefebvre told PYMNTS last year.

“The payment methods, the compliance environment, ERP, the level of sophistication around automation — that’s where payments modernization will have an impact,” he added.

Another area of divergence is how different generations approach decision making. Seasoned executives can often rely on experience, intuition and long-standing industry relationships to guide their choices. In contrast, many young professionals tend to lean heavily on data analytics, artificial intelligence-driven insights and automation tools.

Cloud-based financial platforms are playing a role in this transformation, and as data becomes the new currency of finance, chief financial officers are embracing analytics-driven decision making.

See also: How B2B Players Can Account for Gen Z Decision Makers

The generational split isn’t just about payment methods; it extends to how professionals communicate and make decisions. Traditionalists and certain generations have long relied on hierarchical decision making and formal channels such as email and scheduled meetings. Meanwhile, young professionals can favor real-time messaging platforms like Slack, Microsoft Teams and other collaboration tools.

This divergence can create friction, especially in companies with multigenerational workforces. However, organizations that embrace flexible communication strategies can bridge the gap.

At the same time, marketplace innovations are pushing the boundaries of what is possible in a digital-first B2B landscape. Platforms like Flex, which raised $225 million this month, and Lenkie, which raised $62 million this month, illustrate a trend where financial services are seamlessly integrated into business workflows.

Ultimately, evolving B2B payments and decision making are about generational convergence. Establishing mentorship programs where experienced leaders share industry insights with young professionals — while also learning about digital tools and modern efficiencies — can help drive business growth.

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