PayPod featured Baxter’s deep dive into the $11 trillion check problem plaguing B2B payments, where 33% of business transactions still rely on paper checks despite widespread digital adoption in consumer markets. Baxter explores why blue-collar industries like construction, logistics, and wholesale distribution have been left behind by the fintech boom, revealing how perverse incentives actually encourage some platforms to maintain slow check-based systems to earn float revenue. The conversation examines how major banks and fintech companies can earn millions by collecting funds immediately while delaying check processing, creating systemic barriers to payment modernization.
The episode highlights how AI can revolutionize invoice-based payment workflows through intelligent bill presentment and automated reconciliation. Baxter discusses Alternative Payments’ approach to streamlining B2B financial infrastructure for underserved industries while focusing on markets that traditional fintech has overlooked. With insights on embedded finance trends and the untapped potential in traditional industries, the conversation provides a strategic framework for entrepreneurs looking beyond the typical VC-backed software-to-software model.
