The B2B payments market is set to grow by 10.8% this year, but payment processors are lagging in AI adoption, with 77% still using manual processes. Economists warn of a ‘diseconomy of scale’ as operational costs escalate, making automated reconciliation a necessity to stay afloat.

Legacy payment systems struggle to meet consumer expectations for instant processing and seamless experiences. Outdated processes and fragmented data sources are driving up costs and compliance risks. 90% of firms still rely on manual spreadsheets, hindering innovation and scalability.

Automated reconciliation processes can consolidate data in real-time, reducing inefficiencies and compliance risks. 39% of organizations struggle with data management, while 75% anticipate tighter regulations in the next two years. Firms must adapt to automated solutions to meet reporting challenges and regulatory scrutiny.

New regulations from the FCA will impact payment and crypto firms, requiring monthly reporting and daily checks for safeguarding funds. Automation of reconciliation processes can help firms comply with regulations and safeguard client funds, ensuring audit trails are readily available.

Payment firms have until May 7, 2026, to comply with new regulations, emphasizing the need for automation to gain a competitive edge. Companies that embrace automation can outperform competitors, reduce costs, and prepare for future opportunities in the evolving payments landscape.

Read more at Yahoo Finance: Why automated reconciliation is the missing link in payment firms’ scaling ambitions