Business App
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Apps Now Required to Report Business Payments Exceeding $600 Annually

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  • Payment apps are now required to report business transactions that exceed $600 annually.
  • The new tax rule underscores one of the biggest advantages that governments see with digital payments: traceability. 
  • Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Payments & Commerce industry. Learn more about becoming a client.

The news: Effective January 1, 2022, payment apps like PayPal, Venmo, and 


Cash App

 are required to report users’ business payments that exceed $600 in a calendar year to the Internal Revenue Service (IRS), per NBC News.

P2P mobile payment transaction volume will reach $785.19 billion in 2021

P2P mobile payment transaction volume will reach $785.19 billion in 2021.

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Providers need to give business owners a 1099-K tax form that breaks down commercial income received through the app if it meets the $600 threshold.

1099-K forms were previously only required for merchants with more than 200 transactions in a year exceeding $20,000 in total value. The updated

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Business Opportunities
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Understanding Business Payments Digitization | PYMNTS.com

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Business Payments Digitization: Large Companies Set The Pace January 2022 - Learn why large corporations are fast-tracking their payments digitization efforts

During the two years of disruption prompted by the pandemic, businesses of all sizes looked at the economic landscape and considered how they should respond to the extraordinary period of uncertainty. Many companies used the pandemic as a catalyst for digitizing their payments operations, and large businesses were the most aggressive with these plans.

Now, businesses of all sizes are undertaking, or planning to initiate, this transformation. Business Payments Digitization: Large Companies Set The Pace January 2022 - Learn why large corporations are fast-tracking their payments digitization effortsTheir digitization programs are helping them become more efficient, improve collaboration with other organizations inside the company and strengthen their external ties with customers and suppliers.

These are among the key findings from Business Payments Digitization: Large Companies Set The Pace, a collaboration between PYMNTS and Corcentric. The report is based on a survey of 400 chief financial officers (CFOs) who represent United States companies from five industries: manufacturing, finance, retail, transportation and healthcare. The survey was conducted from Aug. 16,

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Business Opportunities
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How Embedded Finance Modernizes Business Payments

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Business-to-business (B2B) transactions are notorious for various pain points and paper-laden processes that, from invoices to paper checks, result in late, and even lost, payments.

Taira Hall, senior vice president of B2B and strategic innovation at FIS, said that embedded finance — integrating payments directly into apps, platforms and even invoices — can help modernize and contextualize interactions between buyers and suppliers, radically changing the way that consumers use financial products today.

Hall noted that the financial services industry is going through “a rapid evolution,” accelerated by the COVID-19 pandemic, and embedded finance is now becoming the “connective tissue” that can enhance banks’ end customer experiences.

Embedded finance offers financial services at the existing point of presence for the commercial client, whether that be a large corporate or a small- to medium-sized business (SMB). This means financial services are delivered to the experiences the client is already using,

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Business App
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The IRS is cracking down on digital payments. Here’s what it means for you

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Payment app providers will have to start reporting to the IRS a user’s business transactions if, in aggregate, they total $600 or more for the year. A business transaction is defined as payment for a good or service.

Prior to this change, app providers only had to send the IRS a Form 1099-K if an individual account had at least 200 business transactions in a year and if those transactions combined resulted in gross payments of at least $20,000.

The expansion of the reporting rule is the result of a provision in the American Rescue Plan, which was signed into law earlier this year. The ultimate aim of the provision is to clamp down on unreported, taxable income.

Keep in mind, the new reporting threshold does not change your basic tax responsibilities. Income you receive for a good or service — including tips — has always been reportable and in

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