Page 299 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Executive Summary

Business-to-business (B2B) payments are often thought of in terms of the large value transactions which occur
between and among large enterprises. But, small businesses, even very small businesses, like large ones,
have to pay their suppliers and collect from their business customers. The ability to make and receive these
payments in a timely fashion is often a critical factor in the success of the small business: a shop unable to buy
new inventory won’t be able to sell much. The means to affect these transactions remotely without visiting
the customer’s location or enabling employees to handle purchasing are key to growing a small enterprise.
The move toward eMoney also creates a digital transaction record which is key to establishing credit.

In this report, we examine the impact of electronic B2B payments on the development of the DFSs ecosystem in
developing countries. We look at the requirements of businesses, at the benefits of using electronic payments,
and the trends affecting this market. In a section called “Second Order Benefits”, we look at how the use of
electronic B2B payments may accelerate the adoption of eMoney and electronic payments in general. We
conclude with recognizing some of the barriers to adoption of B2B payments, and outlining some considerations
for policy makers.

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