The pandemic brought a huge shift in consumer behavior. With more consumers going online for everything from new cars to daily essentials, ecommerce sites are becoming the stores-of-choice for almost all shoppers. And the same is true in B2B.
What is B2B Payment Processing?
B2B buyers want their shopping experiences to be just as simple as it is in their B2B lives. This shift in consumer behavior is forcing the need for B2B companies to provide B2C-like shopping experiences that can handle B2B payments complexities seamlessly—from search and add-to-cart through payments and delivery.
But unlike the straightforward transactions in their consumer lives, B2B payment requirements are more complex. In B2B, invoicing is necessary — as B2B buyers expect a wide range of payment offerings such as cash, checks, wire transfer, ACH payments, credit cards and in some cases, even cryptocurrency.
Now more than ever, a B2B eCommerce experience needs to be able to accommodate these payment options. And that’s where payment processing solutions come in. These solutions are built to handle online B2B transactions so that today’s digital-first customers can purchase your products easily and with the terms they are accustomed to receiving, And in turn, ensure you get paid.
Depending on its capabilities, a B2B payment processing system can have a profound impact on a company’s working capital management strategy. So, it’s critical B2B companies partner with a payment processor that offers robust B2B payment options that fit the needs of your business and your buyer.
Benefits of B2B payment processing
The growth of ecommerce in the wake of the pandemic has been the most recent catalyst for B2B companies to find the need to digitally transform. Businesses are flocking online with the promise of more sales, but need an omni
–channel strategy in-line with demands of this new generation of B2B buyers. With payments being the lifeblood of any B2B transaction, successful companies are placing a priority on getting it right.
In that effort, they’re turning to payment processors to better manage B2B invoicing and payments.
Simply put, a payment processing solution communicates relevant payment information from a customer’s payment method to the B2B company’s bank, as well as the customer’s bank. The transaction is approved — usually in a matter of seconds — when the system determines there are enough funds to cover it.
B2B payment processing solutions must be equipped to handle the complexities of B2B payments, such as offering the ability to make global purchases and providing the payment options B2B customers prefer.
The payment processor also serves as a safeguard against fraud and helps to reduce the number of errors or mistakes — checking security and ensuring the customer’s relevant payment data is correct.
Payment processing solutions also speed up invoice processing time, meaning there is less working capital tied up in customer invoices. When too much capital is extended through customer invoicing and settlement timing is unpredictable, companies put themselves at great risk.
These solutions offer benefits inside the business as well. B2B invoicing is time-consuming for accounts receivable teams. Underwriting and onboarding clients, tracking down invoices, customer disputes and collections — these tasks can all take days or weeks. A payment processor not only helps reduce the time it takes to perform these tasks, but also the strain it places on A/R teams, freeing them up to focus on strategy and innovation.
These important capabilities ultimately lead to increased conversions, customer loyalty and higher average order value.
Finding a payment processing partner
In today’s business landscape, where creating memorable customer experiences is crucial to winning customer loyalty, getting payment processing right is more important than ever.
An organization’s ability to embed its payment processing system into its eCommerce platform is essential to providing the seamless customer experience today’s B2B buyers demand. Less friction at checkout allows you to win repeat business and increase average order value.
TreviPay helps B2B companies better manage accounts receivable days. Our solutions work with your existing platform and let you consolidate invoicing — giving customers more control over organizational purchases and greater visibility into purchasing data. And it’s user friendly, making you easier to do business with than your competitors.
Download TreviPay’s groundbreaking eBook Embedded Payments: How to Build Faster, Smarter B2B Payments Systems to learn more about adding a B2B payment processing solution to your online embedded payments program.