Why the payments process gap needs to be bridged
While the language around B2B and B2C payments might sound poles apart, there is some common ground. For instance, a rebate in B2B terms is simply what the world of retail calls cashback (aka incentivising customers to make a payment on a card). A business’s working capital is virtually the same as a consumer’s interest-free credit period. And, arguably, B2B net payment terms are simply what the consumer world now refers to as Buy Now, Pay Later (BNPL).
Another similarity is people. The individuals who are making purchases in their everyday lives are also making transactions in the workplace. This is perhaps most keenly seen among the digital generation. As the next generation of leaders grow into their roles, the development and adoption of intuitive, simple systems that mirror their own customer journeys is key.
The benefits of B2B card payments
Thankfully, innovation in the B2B payment landscape is giving buyers and suppliers the convenience and confidence they have come to expect. Leading the charge are B2B card transactions.
With company background checks (e.g. Know Your Customer and credit assessments) on corporate buyers taken care of, B2B suppliers can accept orders knowing they’ll receive the money in a fast and frictionless way. Due diligence is also carried out on companies wanting to accept payment by card, going further than many of the checks buyers complete on their suppliers.
The detail and consistency of these processes ensures the integrity of the network and gives corporate buyers the confidence to use their cards for both one-off and more regular payments.
How B2C is paving the way for a better future for B2B payments
Here are some of the ways in which B2B payments are taking B2C trends and making them their own.