Top B2B Payment Trends: A Guide to Business Success
Throughout history, people have relied on diverse payment methods to purchase goods and services – from bartering systems and coins to tally sticks and cash. Fast forward to today, and you can make a purchase virtually, without any payment physically changing hands.
Advances in technology and evolving customer demands are transforming how we pay and get paid. It happened first in retail, but we’re now seeing significant growth in business-to-business eCommerce. Right now, the B2B digital payments market is forecasted to reach $23.1 trillion in 2020.
What’s driving this payments revolution and how can businesses stay ahead by cashing in on the latest B2B payment trends? We got to the bottom of this question in our eBook “The Essential Guide for B2B Payment Trends in 2019” and outline four of the key findings below.
4 Digital Payment Trends that Are Reshaping B2B
1. The rise of flexible payment options
Technology is changing every aspect of our lives – how we work, how we shop, how we bank, and more. The more technology makes everyday tasks faster and easier, the more consumers demand speed and convenience. Industries everywhere are having to step up their payment offerings in order to meet their growing demands – the B2B world included.
Digitization is giving rise to new players. FinTech start-ups are flooding the market and disrupting traditional ways of saving, paying, lending, and transferring money. Digital-only and mobile-only banks are bursting onto the scene, along with a host of P2P payment apps, digital platforms, and contactless payment options. And with non-banking players such as Google, Apple, Facebook, Amazon, and Alibaba offering even more innovative ways to pay, today’s consumers have never had greater choice nor control over their finances.
The good news is that these payment innovations are also making their way into B2B. Finance-as-a-service providers like Behalf make it easy for business customers to buy what they need when they need it, which is a win-win for merchants and consumers alike.
2. Customer demand for payment choice
Consumers have gotten used to speed and convenience in the retail world and are now demanding the same fast, accessible experience in B2B payments. They want control over their business finances, with the ability to make transactions in a way that suits them. They can do this is their personal lives, why not in business?
As companies strive to give customers what they are asking for, traditional, manual, and paper-based ways of doing things are giving way to digital alternatives. These include virtual cards, digital loans, e-marketplaces, and faster, real-time payments (RTP), which are expected to grow in B2B in the year ahead. Companies are also adopting consumer-like functionality to keep customers happy, from online chatbots and digital assistants to online and mobile access to payment activity.
3. Collaboration and simplified integrations
The move to digital payments is being facilitated by FinTechs who are opening up APIs (application programming interface) to banks and businesses alike. This allows the bank or business to quickly integrate financing into their own platform and enhance the payments experience for their customers.
Digitization offers exciting possibilities, but it also brings new security risks. FinTechs recognize this and are cultivating partnerships with third party experts in order to balance speed and convenience with security. Now, B2B companies have the option to safely integrate financing into their own payment systems,
4. Increased competition
To prosper and grow in today’s fast-moving digital world, businesses need to change the way they operate as well as embrace technology. This is not always easy, but it’s what customers want. And if customers don’t get the speed and convenience they expect from your business, they won’t hesitate to go to one of your competitors. It’s a time of change and opportunity, and the payments space is one area you won’t want to get left behind.
Interested in learning more about the biggest digital payment trends of 2019 and how to capitalize on them for business success? Get a copy of our free eBook.