In B2B payments, corporates’ continued use of paper checks confounds FinTech firms working to give businesses more affordable, faster and more efficient payment options. Yet, for many business payers, the reason for using checks can be quite straightforward: It’s simply the way payments have always been made.
However, new small businesses (SMBs) being launched by a new generation of entrepreneurs aren’t bogged down by decades-old processes and systems that limit flexibility and evolution. These professionals are entering the market with a demand for digitization, and it’s driving the emergence of digital- and mobile-first banks built for small businesses.
Among this community is Novo, a mobile-first bank connecting entrepreneurs with bank account and debit card services. According to the company’s Co-founder Tyler McIntyre, the breed of entrepreneur that flocks to a digital-first bank is the type of business owner who uses digital payments over checks.