Digital Payments: The Competitive Edge B2B Businesses Can’t Ignore

By Brian Gaynor, VP of Product & EU CEO at BlueSnap (pictured)

In today’s marketplace, whether online or in-store, consumers expect to pay for goods and services through a variety of methods—credit cards, debit cards, direct debit, PayPal and more. Consumer-facing businesses have long been investing in and integrating these diverse payment options to meet customer demands and ensure a seamless shopping experience.

While the consumer sector has made significant strides in payment modernisation, B2B companies have lagged behind, often due to a complex set of challenges.

In some cases, limitations of existing accounting systems have prevented B2B companies from migrating to electronic payments or moving away from paper cheques delivered via regular post. The perceived costs and headaches of implementing a digital payments platform have also been contributing factors. In other cases, B2B companies have simply been reluctant to disrupt the processes to which their customers have become accustomed.

However, the dynamic in the B2B environment is changing, driven in large part by customers who are now buying online 74% of the time. As comfort levels and familiarity with digital payments have increased, B2B customers increasingly want the same touch-free payment experiences they enjoy as consumers, with multiple payment options and without having to handle money or physical checks. 

Many B2B enterprises are responding to the changing environment and introducing new digital payments options. But not in all cases. Those that have been slow to adapt are not only running the risk of failing to meet customer demand for enhanced payments experiences, but they could also be missing out on some of the following broader business benefits as well:

Turbocharge Business Operations for Maximum Impact

The breadth of capabilities offered by a digital payments platform extends well beyond the basics of executing a transaction. Modern, digital payments platforms also serve as an extension of existing accounting and accounts receivable systems that, depending on age, are often rigid and inflexible. Digital payments systems enable B2B companies to automate processes guided by specific rules and well-defined workflows. The ability to forecast and manage cash flow is enhanced, particularly for companies with multiple lines of business and different types of invoices going out to a wide range of customers. In summary, an enhanced payments system elevates operational performance across the business. 

Enhancing Customer Experience and Loyalty

Payment and billing data is the oil for any company’s customer support engine, in B2B as much as B2C. When customers engage with service representatives and data is not readily available, or sitting in siloed Excel spreadsheets that are difficult to share among teams, frustration can certainly be expected. B2B companies that adopt digitised and modernised payment capabilities will also have increased internal visibility and access to information that can be acted upon, improving customer service, increasing cashflow and producing opportunities for upselling new products and services.

Minimise Operational Inefficiencies and Boost Productivity

According to a recent survey, processing a single invoice can require the involvement of as many as 15 people doing 11 hours of work. Often, it’s the legacy accounting systems that pose hindrances, forcing accounts payable and accounting teams to spend copious amounts of time reviewing invoices, determining which ones need to be paid, implementing requests from customers, checking across CRM systems and emails, and so on. A modernised payments system reduces all those inefficiencies, allowing B2B companies to accept and process payments, follow up with customers regarding non-payments, issue refunds, and increase the speed with which outgoing invoices are paid, all while freeing employees to spend time on more substantive issues. 

Many businesses are resistant to change, often sticking to familiar processes, and this hesitation is evident in their payment systems. However, B2B companies can no longer afford to maintain the status quo, especially if they aim to expand into direct-to-consumer markets. Transitioning to digital payments will streamline invoicing and payment procedures, accelerate cash flow, and deliver a tangible operational advantage for the business.