Funding Boost Fuels Alternative Payments’ Push to Modernize B2B Payment Infrastructure

B2B payment systems have long lagged behind their consumer-facing counterparts, particularly in industries that are still heavily reliant on paper-based invoicing and fragmented payment workflows. Alternative Payments, a New York-based infrastructure provider, is aiming to change that. The company has secured $22 million in funding led by MissionOG and Third Prime to scale its digital payments platform for underserved business sectors.

The funding will be used to expand its automation capabilities and accelerate global market entry, particularly in segments like IT service providers, managed service providers, and blue-collar industries. These sectors often lack access to modern merchant services or client-facing financing tools. Alternative Payments’ end-to-end platform is built to integrate with enterprise resource planning and accounting systems, automating everything from invoice delivery and tracking to payment reconciliation.

By reducing reliance on legacy systems and manual processes, the platform addresses pain points such as slow settlements, poor invoice accuracy, and limited international payment options. Businesses using the platform have reportedly seen a significant reduction in days sales outstanding, improving cash flow and enabling more strategic financial planning.

The company’s focus on delivering accessible, automated payment infrastructure comes at a time when financial stability and operational efficiency are front of mind for many organizations. With this latest funding round, Alternative Payments is positioned to deepen its capabilities and continue driving modernization in an often-overlooked corner of fintech.

The rise of platforms like Alternative Payments signals a notable shift for Managed Service Providers (MSPs), who have long relied on manual processes or disjointed systems to manage billing and cash flow. This new breed of payment handling services—still relatively novel in the MSP space—offers end-to-end automation for invoicing, reconciliation, and client payments.

Baxter Lanius, CEO & Founder at Alternative Payments highlights, “Alternative Payments integrates with all leading PSA software, including, but not limited to ConnectWise, Autotask and HaloPSA. A SecOps Cloud Platform integrates your full security stack into an observability pipeline that easily scales with your business. Through these integrations, we automate all downstream processes, including notifications, collections, payments, etc.  MSPs have historically forgotten about accounts receivable, leading to cash flow challenges; however, with Alternative Payments, MSPs can still forget, but now their accounts receivable are on auto-pilot.”

By integrating directly with ERP and accounting systems, these platforms allow MSPs to reduce administrative burden, accelerate collections, and improve financial visibility. For an industry built on recurring revenue, this kind of automation can directly impact cash flow and operational efficiency.

What sets this apart is the addition of embedded financing options—such as B2B buy now, pay later—that MSPs can extend to their customers without taking on the financial risk. This opens new doors for customer acquisition and retention, especially in segments where clients seek flexible payment terms.

Lanius stresses that embedded financing and buy now, pay later is a critical value-driver allowing MSPs to offer their clients flexible payment terms, while being paid 100% upfront. "By being able to spread payments over time, MSPs are enabling clients to spend more, driving revenue growth.  Buy now pay later is a critical tool in an MSP's toolkit to sell more and close deals, faster," he adds.

The ability to support international payments with less friction also aligns with the global expansion goals of many MSPs. As these tools gain traction, they’re beginning to redefine how MSPs approach financial operations—bringing a level of modernization that was previously out of reach for many in the sector.