EU Payment Observatory : annual report 2023

The European Payment Observatory of commercial transactions (EU Payment Observatory) was set up in 2023 at the initiative of the European Commission to monitor trends and developments on payment performance and behaviour in commercial transactions in the EU to combat late payments. Late payments in B2B and G2B transactions have multiple damaging effects, particularly on SMEs. Delayed payments affect the liquidity of companies which can prevent investment and expansions, and they can hinder digital and environmental transformation initiatives. Delayed payments contribute to financial woes and may even lead to bankruptcies. In addition, late payments lead to more late payments as it might not be possible for companies to pay their suppliers until they themselves are paid, hence exacerbating the cycle of delayed transactions.