May 2, 2023 | Stamford, CT — More than a quarter of the world’s commercial payments and almost 30% of receivables now flow through nonbank or fintech alternative payment platforms.

Alternative payment “rails” like Venmo, Zelle, and Paypal, are gaining popularity among large and small companies around the globe as executives become more accustomed to using convenient digital platforms in their daily lives.

The companies participating in a recent Coalition Greenwich Commercial Payments Deep Dive Client Experience Study plan to continue shifting flows to alternative platforms. These companies, which range in size from $10 million to more than $2 billion in annual revenues, expect to be using alternative platforms for 36% of payments within the next two years, and for 42% in the next five years. Alternative platforms are expected to handle more than a third of receivables in two years, and almost 40% in five years. 

“Companies are embracing alternative payment platforms for two primary reasons: cost savings, and perceptions of enhanced fraud protection,” says Chris McDonnell, Head of Community, Commercial and Digital Banking at Coalition Greenwich. “Nine out of 10 study participants globally say they would award new business to platforms that deliver those benefits and about 85% of companies cite payment speed as a key reason to award business to a provider.” 

Paypal, Amex Most Popular; Traditional Banks Respond with Impressive Innovations 
Approximately three quarters of the companies in the study use at least one nonbank or fintech provider for payments. About half of these companies are using Paypal, making it the most popular alternative platform among study respondents. American Express ranks second, at about 33%. 

Although nonbanks and fintechs have gained market share in commercial payments and receivables, traditional banks have responded with innovations that are impressing corporate owners and executives. In fact, when asked to name the industry’s most innovative payments provider, 78% of smaller companies cite Capital One, tying the bank with Amazon Pay for the top spot on that list. Six out of the top 10 most innovators providers are traditional banks.  

Companies in the study cite JPMorgan Chase for apps and software that “integrate beautifully and are easy to interface with.” Well Fargo gets high marks for specific types of payments, Citibank earns praise for “exceptional service” from some of the largest Corporates, and HSBC receives recognition for its quick response times and rapid problem resolution.