Future-proof your business: Why now’s the time to digitize payments

Many businesses today are still stuck using outdated payment systems. Despite years of innovation in consumer payments – think mobile wallets, tap-to-pay, and instant money transfers – there’s still some hesitation in adopting modern payment solutions in the B2B world. Why is that?

Eric Frankovic, President of Corporate Payments at WEX, recently sat down with PYMNTS.com CEO Karen Webster to talk about this. Their conversation, inspired by the new WEX–PYMNTS report Virtual Mobility: How Mobile Virtual Cards Elevate B2B Payments, dives into how legacy systems are holding businesses back and how virtual cards and mobile wallets are paving the way for faster, smarter, more secure payments.

To watch the full interview, visit PYMNTS

The post-pandemic pause on digitization

During the pandemic, companies had no choice but to digitize certain processes to stay afloat. But since then, many have hit pause on their progress or returned to traditional processes.

“It’s now an age-old question that we’ve been talking about for so long,” Eric said. “COVID was the most recent event that we all would have sworn would drive everybody to digitize their back office and get away from paper altogether. And I think it did push us in that direction. But we came out the other side, and what we’re seeing is there are still a lot of companies that are getting back to doing whatever it is that they do. And digitizing their back office is falling down the priority list.”​

For a while, it seemed like change was happening. But as the urgency of the pandemic faded, so did the momentum. Instead of pushing forward with digital transformation, some businesses went back to business-as-usual, printing checks, mailing invoices, and relying on manual processes. Naturally, many thought “If this worked for us for so long, why change it?” 

That delay in moving forward has created a gap; one that makes businesses vulnerable and at risk of being left behind.

Fraud is now a wake-up call

The driver of urgency may no longer be the pandemic, it’s fraud.

Payments fraud has grown more sophisticated in recent years, targeting companies that still rely on manual processing or lack visibility into their financial workflows. In fact, according to the 2025 AFP Payments Fraud and Control Survey, 79% of organizations surveyed claimed to be victims of payments fraud attacks in 2024. Paper checks remain the most vulnerable payment method, with 63% of respondents saying their organizations experienced check fraud last year.

“Fraud is now what we’re seeing that’s pushing more and more people to take this seriously and move it back up the priority list,” Eric explained.

Virtual cards are one payment method leading the digital transformation. Unlike paper checks or traditional ACH payments, virtual cards offer built-in protections like single-use numbers, defined payment amounts, and better traceability. 

The push toward secure, mobile-ready options is gaining momentum, too. According to the PYMNTS report, 82% of merchants say they plan to expand their use of digital wallets, a sign that consumer expectations for speed and convenience are now influencing B2B transactions.

Manual processes are slowing businesses down

Despite all the talk of digital transformation, many companies are still bogged down by outdated, manual systems. More than half (51%) of surveyed businesses said they rely heavily on manual data entry. Nearly as many (47%) struggle with frequent data errors and delays. And 23% said they lack visibility into their payment operations altogether.

These inefficiencies add up to wasted time, higher costs, and strained supplier relationships.

So why haven’t more companies made the leap to automation? Surprisingly, 73% of those surveyed still haven’t automated their supplier payments. That disconnect shows just how difficult it can be to modernize B2B payments, even when the pain points are clear.

“There’s no one-size-fits-all,” Eric explained in his interview with PYMNTS. “Companies really have to think about their goals, how they work with suppliers, and what operational needs they have before deciding how to pay.”

Still, one thing is certain: sticking with manual payment processes is no longer sustainable.

Virtual cards are gaining ground

Eric pointed out that interest in virtual cards has picked up recently, especially among businesses that were once slow to adopt new payment tools. “We’re seeing more companies that maybe have been a little resistant in the past now making outreach,” he said.

The report shows that 14% of midmarket firms plan to adopt virtual cards — a 322% increase compared to current adoption levels based on PYMNTS Intelligence data. The increase is being driven by growing concerns about fraud, coupled with rising awareness of the financial and operational benefits of secure, tokenized payments.

So what’s behind the shift? A lot of it has to do with how providers like WEX are making adoption easier. “What’s going to drive adoption not only short term, but over the next five or 10 years, is going to be the sellers of these products — the banks and payment companies getting sharper, making it easier, integrating with their ERP systems, and consulting with them on the best treatment of suppliers” Eric said.

For example, onboarding suppliers used to be a major hurdle. Now, more companies are realizing that the right payments partner can help them navigate that process, from identifying the suppliers best suited for virtual cards to supporting education and onboarding. 

“It’s not simply just about the return anymore,” Eric added. “It’s much more about consulting the full gamut, from dynamic discounting to supply chain finance and more.” For companies looking to modernize payments while strengthening supplier relationships, having an experienced partner at the table can make all the difference.

Cost control and supply chain resilience go hand in hand

Modernizing payments isn’t just about digitization for digitization’s sake. It’s about protecting the bottom line.

Supply chains are still under pressure, and late or inflexible payments can strain business relationships. “The really progressive companies are getting in front of it,” Eric said. “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.”

The report backs this up, showing that virtual cards not only speed up settlement times — reducing the average 28.7-day wait for payments — but also offer rebates and cash-back incentives. This combination of faster payments and financial perks is becoming increasingly difficult for CFOs to ignore.

Generational shifts are playing a role, too

Today’s users are tomorrow’s leaders.

Eric joked that he recently had to explain what a paper check is to his 16‑year‑old daughter. “When you’re trying to explain it, it sounds really insane,” he said. “She asked, ‘Why would you do that? And where does it go?’” That reaction captures a wider truth: people who grew up with tap‑to‑pay and one‑click shopping expect the same speed and simplicity at work.

Millennials and Gen Z – who now make up 71% of business buyers – want business transactions to happen with speed and convenience. They’re less tolerant of clunky, outdated processes. As Eric put it, “Just like in their personal lives, a lot of B2B transacting is done on the phone.”

That mobile‑first mindset is pushing finance teams to explore tools such as virtual cards delivered straight to a buyer’s mobile wallet, giving them the tap‑and‑go convenience they already enjoy at the grocery store, only now applied to business transactions.

Still, Eric recognizes that change takes time. “What we’re seeing now is a balance. Companies are busy, and digitizing payments has to compete with a long list of other priorities,” he said. “But the risk of doing nothing is becoming too great.”

What is the path forward?

The pandemic proved that back‑office change is possible, the rise in fraud showed why it matters. Today, a mix of economic fluctuation and uncertainty are adding a fresh sense of urgency. Yet no single event will flip the way we pay overnight.

“It’s going to be a slow trickle,” Eric predicted. “It’s going to be hand‑to‑hand, a company at a time.” Progress, in his view, will come from payment partners that make modernization painless and so valuable that clients can’t help but spread the word. “Company A says, ‘We’re using WEX, it’s working great. Here’s what they’re doing for us,’ and then the next company and the next company follow suit.”

In other words, real transformation will be driven less by major events and more by steady, practical wins that ripple through supply chains. One company at a time.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

Sources: 
Association for Financial Professionals (AFP)
Forrester