With so many ways to pay both in-store and online, consumers now expect this level of choice in every aspect of their lives – and we’ve seen B2C businesses adapt and cater to this.
This level of adaptation at speed cannot be said for the B2B sector, which has been slower to offer the same to its customers.
Brian Gaynor, VP of Product & EU CEO at BlueSnap explains that B2B customers also want to experience the same ease and convenience they get from paying as a consumer. They want the same level of choice and flexibility – without having to use physical payment types – whether that be cash or cheque. With this, and findings suggesting 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 nearly at the speed that’s expected.
Barriers to embracing digital payments
In some cases, existing accounting systems are preventing the company from migrating to electronic payments or moving away from paper cheques delivered by regular post. The perceived costs and headaches of implementing a digital payments platform have given others pause. And sometimes, B2B companies have simply been reluctant to disrupt the processes to which their customers have become accustomed.
Those that have been slow to adapt are not only running the risk of failing to meet customer demand for enhanced payment experiences, but they could also be missing out on some of the following broader business benefits as well:
Digital Payments impact on the wider business
The breadth of capabilities offered by a digital payments platform extends well beyond the basics of executing a transaction. Modern, digital payment platforms also serve as an extension of existing accounting and accounts receivable systems that, depending on age, are often rigid and inflexible. Digital payment systems enable B2B companies to improve overall cash flow and forecast across the business with greater accuracy. Enterprises with multiple lines of business and different types of invoices going out to a wide range of customers can automate processes guided by specific rules and well-defined workflows, reducing errors and chargebacks. In summary, an enhanced payment system elevates operational performance across the business.
Enhancing the customer experience with digital payments
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 cash flow and producing opportunities for upselling new products and services.
Streamlining business functions and promoting 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.
It’s no secret that many businesses become stuck in their ways. However, with an ever evolving payments landscape for both B2B and B2C, this isn’t something that they can afford to do any longer. Digital payments have become a necessity in our everyday lives, and that necessity is now making itself clear for B2B customers who no longer want to be tied down with limited payment options.
Embracing digital payments streamlines processes, promotes productivity within businesses and makes for faster payments – those who aren’t already on board the digital payment wave are at risk of being left behind.
Read more:
Why all B2B Businesses should embrace digital payments