The concept of “creative destruction” came into vogue decades ago to describe how new economic development arises out of the destruction of some prior economic order.
The Internet has been a prime catalyst for creative destruction over the past 15-20 years. It enables companies to build new business models, penetrate new markets, win new customers, radically increase efficiency, and differentiate themselves in entirely novel ways.
Yet B2B financial flows—including invoicing, payments, and transaction processing—have experienced not an iota of creativity, let alone creative destruction, since the Fuggers in Europe started doing cross-border payments via horse-drawn mail coaches.
It may be interesting to wonder “why,” but the more important issue is “when.” When will disruptive change finally come to the antiquated world to sluggish, unpredictable, expensive, highly intermediated B2B transactions?
We don’t see any reason B2B financial flows shouldn’t capitalize on the tremendous technological advancements that have revitalized so many other aspects of the way we work, play, and live. Virtually every facet of the way we communicate and conduct commerce is now instantly available 24/7, leaving behind the traditional boundaries and assumptions.
However, economic history shows that the incumbent “dinosaurs” do normally not adapt well to a disruptive change created by new technologies. So it’s time for a smaller, younger, more dynamic company to lead the disruptive change in B2B financial flows. That is the driving force behind Traxpay. It’s more than a vision or a mission; it’s an imperative for an industry that is overripe for creative destruction.