68% of companies used checks for B2B payments in 2023, and 70% said they don’t plan to stop using them in the next two years. However, checks were also the most targeted payment method by fraudsters, making up 63% of fraud attempts in 2024.

For many businesses, payments are still tied up in paper — checks in the mail, invoices printed and filed, and hours of manual work to keep it all straight. But just like consumers have shifted to digital payments, B2B companies are moving away from paper-based systems toward paperless pay. The change is helping businesses save money, time, and reduce risk.

What is paperless pay in B2B?

Paperless pay is the move from manual, paper-based processes to digital methods for sending and receiving payments. Instead of cutting checks or filing stacks of invoices, businesses use electronic tools like:

• Virtual cards
• ACH transfers
• Wire payments
• Digital wallets
• Automated accounts payable (AP) systems

The goal is to reduce reliance on paper and manual work, while increasing speed, security, and visibility into cash flow.

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Why paperless pay matters

1. Paper is costly

Cutting a check may feel simple, but the costs add up. According to the Association for Financial Professionals (AFP), the “median cost of issuing a paper check ranges from $2.01 to $4.00.” The cost of issuing checks also includes printing, postage, envelopes, and the staff time it takes to process everything. Multiply that by hundreds or thousands of payments each month, and it’s clear why companies are seeking alternatives.

2. Digital is faster

Checks can take days, or even weeks, to arrive and clear. Digital payments can move almost instantly, which helps businesses keep their cash flow healthy and suppliers paid on time.

3. Security concerns

Paper checks are prone to fraud. They carry account numbers, routing information, and signatures that can be intercepted. Digital payments, like virtual cards, come with added layers of security like tokenization, encryption, and spending controls that allow you to determine where, when, and how transactions occur.

4. Supplier relationships

Paying suppliers quickly and accurately is one of the best ways to strengthen business relationships. Paper delays or lost checks can damage trust. Digital methods help businesses build stronger partnerships.

The benefits of going paperless

Better cash flow management

With digital systems, companies can see in real time when payments go out and when they’re received. That visibility makes forecasting and managing working capital much easier.

Lower operating costs

Paperless processes cut down on supplies, postage, and manual labor. They also reduce errors that often come with re-keying data or chasing down lost paperwork.

Improved security

Fraud is a growing concern in B2B payments. Virtual cards and other digital tools limit exposure of sensitive information and offer built-in fraud protection.

Scalability

As companies grow, paper-based systems can’t keep up. Digital payment platforms are designed to handle larger volumes without adding more staff.

Environmental impact

While cost and efficiency drive most decisions, reducing paper waste also supports sustainability goals, which many businesses now prioritize.

The challenges of paperless pay

The shift doesn’t happen overnight. Businesses often run into a few hurdles:

Supplier adoption: Not all suppliers are ready to accept digital payments. Some may prefer checks or have limited technology in place. At WEX, our supplier enablement team works with each client to best understand how they want to approach suppliers so all sides get the best result. And we’ll support supplier enablement for buying relationships of all sizes.

Change management: Moving from paper-based processes to paperless pay can be a big shift for employees who are used to checks, printed invoices, and manual approvals. Resistance is common, especially if staff worry about learning new systems or fear their roles will change. To ease the transition, it’s essential to invest in training that is hands-on and easy to follow. Clear, consistent communication about why the change is happening, how it will benefit the team, and what support is available can help reduce anxiety. Involving employees early in the process and providing opportunities for feedback also increases buy-in and ensures the new system is adopted smoothly.

How to make the switch

1. Assess your current process

Start by taking stock of how you handle payments today. How many checks do you issue each month? How much staff time is spent on manual processes? Understanding the baseline makes it easier to measure progress.

2. Prioritize suppliers

Not every supplier needs to move digital on day one. Focus first on the ones you pay most frequently or those open to electronic methods. Lean on your payments provider for the supplier enablement process. 

3. Choose the right digital tools

Virtual cards, ACH, wire transfers, and digital wallets all play a role. Many companies find value in using a mix, depending on the size, frequency, and type of payment.

4. Communicate with stakeholders

Suppliers, employees, and finance teams all need to understand the changes. Be clear about the benefits — faster payments, better visibility, stronger security — and provide support during the transition.

5. Work with a trusted partner

Payment providers can help manage the complexity, from onboarding suppliers to integrating systems. A partner can also provide ongoing support and fraud monitoring.

The future of B2B payments is paperless

Consumer habits have already shifted. People use mobile wallets, tap-to-pay, and online banking daily. It’s only natural that those expectations carry over into the workplace. As companies demand faster, more secure, and more flexible ways to pay and get paid, paper checks will continue to decline.

Paperless pay isn’t just a trend. Those who adopt early gain advantages in cost savings, security, and supplier relationships. Those who wait risk being left behind with slower, more expensive processes.

Key takeaways

• Paper-based payments are slow, costly, and risky.
• Digital methods like virtual cards and AP automation improve cash flow, cut costs, and strengthen supplier relationships.
• The transition comes with challenges, but a phased approach and strong communication can make it easier.
• Paperless pay is shaping the future of B2B transactions and businesses that make the shift now will be better positioned to grow.

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

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

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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.