News Every Day | 15 April 2025, 18:17

Trump’s Tariffs Could Act as Tailwind for Digitizing B2B Payments

Hard times can help to build great companies.

The reason? Amid challenges such as operational uncertainty, ongoing geopolitical friction and supply chain disarray, firms frequently scramble to turn cost centers into levers for resilience.

Given the realities of today’s macro backdrop, many businesses are looking no further than one of the most stubbornly analog components of their operations: B2B payments.

A growing number of firms are turning to virtual cards to digitize payables and even receivables. In doing so, they are discovering strategic advantages beyond cutting paper out of the equation.

President Donald Trump’s trade tariffs and regulatory complexities are piling up. The latest on the U.S. tariffs, which remain in effect on China and continue impacting sectors like semiconductors, electric vehicles, automobiles and rare earth minerals, have prompted procurement teams to identify alternate suppliers, often across borders and currencies. At the same time, compliance departments are grappling with a surge in know your customer (KYC), anti-money laundering (AML), and other regulatory checks as global commerce grows more fragmented.

For finance departments still reliant on paper checks and legacy wire transfers, these shifts have created friction that’s becoming more than just inconvenient but is veering into the strategically untenable.

As chief financial officers face increasing pressure to manage geopolitical risk, maintain liquidity and support business continuity, the case for virtual cards is becoming less about automation and more about optionality.

The Strategic CFO’s New Virtual Card Mandate

Suddenly, payment processing time isn’t just about operational efficiency. It’s about supply chain agility.

Virtual cards, unique, single-use card numbers generated for specific transactions, have been around for more than a decade. Initially positioned as a fraud-reduction tool for corporate travel, they’ve quietly evolved into a robust B2B payment method. What’s changed is not just the volume but the strategic rationale.

For years, the virtual card conversation was about rebates and fraud control. Now, it’s about visibility, traceability and speed, especially in complex trade environments where every delay has downstream impacts.

Unlike ACH transfers, which often require manual supplier onboarding and can take days to process, virtual cards can be issued instantly, embedded in existing enterprise resource planning (ERP) workflows and settled in near real time. This agility is especially valuable when companies need to pivot suppliers or route goods through new territories in response to trade disruptions.

Every new trade restriction amplifies the inefficiencies of paper-based payments.

“The really progressive companies are getting in front of [the transition to virtual card],” WEX President of Corporate Payments Eric Frankovic told PYMNTS this month. “… They have to cut costs, they have to control costs, they have to keep a healthy supply chain. And in order to do that, they have to start those conversations.”

Embedded Finance Meets Strategic Procurement

Another force accelerating virtual card adoption is the rise of embedded finance — the seamless integration of financial services into non-financial platforms. Procurement software, ERP systems and supply chain management tools are increasingly embedding payment capabilities, enabling firms to initiate and reconcile virtual card payments directly from the same interface used to approve purchase orders.

The benefits aren’t just operational. Suppliers, particularly small- to medium-sized vendors in emerging markets, often prefer virtual card payments because they settle faster and don’t require maintaining complex banking infrastructures. Some platforms even offer early payment options, allowing suppliers to receive funds within hours in exchange for a small discount — effectively embedding working capital solutions into the payment rails themselves.

Despite their appeal, virtual cards are not without challenges. Some suppliers are reluctant to accept card payments due to interchange fees, and integration with legacy accounting systems can be nontrivial. Additionally, card networks’ reach still varies by region and industry.

Still, 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.

As the next round of tariffs looms and supply chains continue to evolve, firms still relying on paper checks may find themselves in a different kind of paper jam — one that’s entirely self-inflicted.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Trump’s Tariffs Could Act as Tailwind for Digitizing B2B Payments appeared first on PYMNTS.com.