With so many payment methods, both in-store and online, consumers now expect this level of choice in every aspect of their lives – and we’ve seen B2C companies adapt and meet this.
But this level of adaptation cannot be said so quickly about the B2B sector, which has been slower to deliver the same to its customers.
“B2B customers also want to experience the same ease and convenience they get from paying as consumers,” explains Brian Gaynor, EVP of Product and EU at BlueSnap. “They want the same level of choice and flexibility – without having to use physical payment methods – whether it’s cash or check. With this, and findings that B2B customers now buy online 74% of the time, we’re slowly seeing the B2B sector introduce new digital payment options.”
But is this enough? Progress has been made, but not as quickly as expected.
Barriers to Digital Payments Adoption
In some cases, existing accounting systems have prevented a company from moving to electronic payments or moving away from paper checks delivered by postal mail. The perceived costs and headaches of implementing a digital payments platform have put others off. And sometimes, B2B companies have simply been reluctant to disrupt the processes their customers are accustomed to.
Companies that have been slow to adapt not only risk failing to meet customer demand for improved payment experiences, but may also miss out on some of the following broader business benefits:
The impact of digital payments on wider business
The scope of capabilities offered by a digital payment platform goes far beyond the basics of transaction execution. Modern digital payment platforms serve as an extension of existing accounting and accounts receivable systems that are often rigid and inflexible by age. Digital payment systems enable B2B companies to improve overall cash flow and forecast across the company with greater accuracy. Companies with multiple lines of business and different types of invoices sent to a wide range of customers can automate processes guided by specific rules and well-defined workflows, reducing errors and chargebacks. In short, an improved payment system increases operational performance across the company.
Enhancing customer experience through digital payments
Payment and billing data is the oil that fuels the customer support engine of any business, whether B2B or B2C. When customers reach out to service representatives and the data isn’t readily available, or when it’s sitting in siloed Excel spreadsheets that are difficult to share across teams, frustration is bound to set in. B2B companies that embrace digital and modern payment capabilities will enjoy increased internal visibility and access to actionable information, leading to improved customer service, increased cash flow, and opportunities to upsell new products and services.
Simplify business functions and enhance productivity.
According to a recent study, processing a single invoice can take up to 15 people doing 11 hours of work. Often, legacy accounting systems are the bottlenecks, forcing accounts payable and accounting teams to spend significant amounts of time reviewing invoices, determining which invoices to pay, fulfilling customer orders, checking CRM systems and email, etc. A modern payments system eliminates all of these inefficiencies, allowing B2B companies to accept and process payments, follow up with customers on non-payment, issue refunds, and increase the speed of payment of outgoing invoices, all while freeing up staff to spend time on more substantive issues.
It’s no secret that many businesses find themselves stuck in their ways. However, with the ever-evolving payments landscape for both B2B and B2C, this can no longer be tolerated. Digital payments have become a necessity in our daily lives, and this necessity is now becoming more apparent to B2B customers who no longer want to be restricted by limited payment options.
Adopting digital payments streamlines operations, boosts productivity within businesses, and speeds up payment processes – those who haven’t already joined the digital payments wave are at risk of being left behind.
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