Oddly enough, business-to-business transactions have been lagging behind the consumer sector – not in terms of security or even fees, but in speed and experience.

Consumers have long benefitted from one-click checkouts and instant peer-to-peer bill-splitting features while finance teams have remained stuck in a world of manual wire transfers and batch file uploads.

This disparity is slowly disappearing, partly because there’s a blurring between B2C and B2B given the rise of micro-startups, but it’s also APIs that have made development much easier.

The friction of traditional B2B payments

Historically, executing a vendor payment with bank transfer or a corporate disbursement brought with it a lot of friction. Finance professionals would log into a banking portal, manually key in beneficiary details, or upload a formatted text file (such as a NACHA or payment batch file) and wait for processing cycles that could take days.

This manual process introduces multiple points of failure. Human error in data entry can lead to failed payments or funds being sent to the wrong account. Furthermore, the disconnection between the banking portal and the company’s internal accounting software creates a “reconciliation gap.” Once a payment is sent, the finance team often has to wait for a bank statement to confirm the transaction and then manually update their ledger. This lag results in trapped capital and opaque cash positions, making it difficult for treasurers to make real-time liquidity decisions.

How APIs modernize bank transfers

APIs are the bridge from infrastructure to software. Instead of a human operator logging into a bank portal for each and every transfer, the company uses an API to speak directly with the bank’s server. Here, the payment is executed and can be automated, scheduled, and managed.

When dealing with APIs, you’re writing business logic. So, when an invoice is approved in an ERP system, the system can instantly call a payment API to transfer the money from to the vendor. This account-to-account (A2A) is what skips the pricey card networks and instead uses local clearing houses.

Now the payment flow is programmable and businesses can set unique and novel parameters for when and how payments are released. Perhaps it’s related to exchange rate, or a general bulk for payroll.

Key benefits of automated A2A payments

• Automating bank transfers is much cheaper than commercial card payments (often 1.5%–3% interchange fees) and so using an API bank transfer may save a lot on fees.

• Modern payment APIs mean two-way communication. This real-time webhook is a feedback loop that can mark invoices as “paid” and update the general ledger.
• Many APIs use real-time payment rails which help funds settle in seconds instead of days. 

The Latin American landscape

It’s no surprise that given the history of volatile banking environments in Latin America that this is home to API-based banking innovation. It’s been crying out for a unified structure and, if that can’t come from the top down, it must come from the interoperability that APIs provide. 

Prometeo is one of the bright lights leading the way as it offers a hyper-consolidated API that connects to many institutions in all the major markets like Mexico and Brazil. Their infrastructure is focused on account-to-account payments that settle rapidly so that businesses can have a centralized and responsive way to manage treasury flows – all without maintaining a bunch of separate bank integrations.

But the market is clearly dynamic and there are many competitors. Belvo is a big one in the Open Finance space. They have proficient Pay by Bank solutions that make the most of open banking mandates in countries like Brazil and Colombia. Cobre is another who has focused on the B2B niche like Prometeo. They are building a platform that’s aimed at corporate treasury and accounts payable automation. On the processing side, Kushki is now a massive regional acquirer, offering payment APIs that handle not just card acceptance but also massive payout distribution to bank accounts.

Implementing a payment API strategy

For businesses looking to digitize and take on new banking API technology, you must first assess your current volume and “pain points.” This is because those high volumes have the most to gain from automation.

Implementation is tricky. It’s a technical integration where developers have to map the API endpoints to the company’s existing workflows. There is a rise in low-code platforms, but they cannot yet replace what a partner offers.

Where we are headed

B2B payments are clearly moving away from manual processing. By 2030, it will likely become obsolete in many markets. Payment networks are growing in numbers, so businesses must think carefully about interoperability and future flexibility with other solutions.

Automating bank transfers is now a given. Not just because of saving time, but it’s the lower costs that makes high volume firms desperate for these upgrades. In many cases, where growth is expected, it’s a matter of getting the technology implemented before legacy systems grow to large. APIs scale beautifully, and this should be exploited early on.

Frequently Asked Questions

Why have business payments been slower than consumer payments?

Consumer payments gained one-click checkouts and instant transfers quickly, but business-to-business (B2B) payments relied on older systems. Finance teams still manually entered details or uploaded batch files, which cause delays. This is changing now as APIs make it easier for businesses to access modern, faster banking technology.

What is the major cost benefit of using API-driven bank transfers?

Automating bank transfers through APIs saves businesses a lot of money compared to using commercial card networks. Card payments often include interchange fees that cost between 1.5% and 3% of the transaction amount. API-based transfers usually skip these high fees because they move money directly between bank accounts.

How do APIs help to close the “reconciliation gap” for finance teams?

The reconciliation gap happens when a company sends a payment but must wait days for a bank statement to confirm it. Modern payment APIs offer two-way communication called a webhook. This real-time feedback loop instantly marks the invoice as “paid” in the company’s accounting software, bringing ledgers up to date immediately.

What does “account-to-account” (A2A) mean in the context of B2B payments?

Account-to-account (A2A) payments move money directly from one bank account to another using local clearing houses. This process is different from using card networks as an intermediary. A2A payments are key to the new API systems because they are generally faster and much cheaper.

Is it true that all modern B2B payments settle instantly?

No, not all of them settle instantly, but many modern payment APIs use real-time payment rails. These specialized clearing systems allow funds to be settled in a few seconds, not days. This speed helps treasurers manage cash flow more effectively for real-time decisions.

Why is Latin America a leading region for this API-based banking innovation?

Latin America has a history of bank volatility and a lack of unified banking structures across countries. This strong need for a standardized, interoperable solution has driven companies like Prometeo and Belvo to build API infrastructure. Their work connects many different local institutions under a single system.

What is the difference between a payment API and Open Banking?

Open Banking is a regulatory mandate that requires banks to securely share customer data with third parties. A payment API is the actual tool or code that a business uses to execute a transfer, automation, or data exchange. In many markets, Open Banking rules make modern payment APIs possible.

What practical first step should a business take when implementing a new payment API strategy?

Businesses should first assess their current payment volume and identify their biggest “pain points.” Companies with high-volume, repetitive, or costly payments have the most to gain from automation. This assessment helps focus technical efforts where the cost savings will be highest.

Will low-code platforms entirely replace the need for specialized API integration partners?

While low-code platforms are making simple integrations easier, they cannot fully replace the technical work offered by experienced partners. Integrating a payment API often requires developers to carefully map the API endpoints to a company’s unique and complex internal software workflow, which is still a technical task.

What is the timeline for manual B2B payment processing becoming obsolete?

Experts predict that manual B2B payment processing will likely become obsolete in many major markets by 2030. The significant time savings, reduction in errors, and lower costs of automated solutions are making them essential. Businesses focused on growth need to implement this technology now before their legacy systems become too large to update easily.