B2B PAYMENTS

While in recent years the B2C payments sector has adopted innovations like contactless cards, mobile payments, and P2P payments, many companies in the B2B space are still relying on traditional methods like invoicing. When the technology exists to pay for almost anything with the tap of a card or click of a button, it’s extraordinary to think that these are still the methods many businesses use. Yet, there are signs of improvement. In the US, the B2B payments industry’s value grew from $18.5 trillion¹ in 2016 to $25 trillion² in 2020, thanks in large part to developments like open banking.

Among the reasons companies are slower to adapt is the size of the B2B sector and the transactions businesses tend to make. As they grow, an ecommerce company like our microbrewery may supply regular shipments to supermarkets, restaurant chains, and other retailers. If they continue to use old-fashioned methods to process regular payments, they risk wasting time, inhibited cash flow, logistical complexity, and potential issues with data security. When payments are late, the picture looks even worse, with companies that rely on manual processes taking 67% more time³ to follow up on overdue payments.

What any business needs from their payments solution is a simple, quick, secure system that they can integrate quickly with their preexisting infrastructure. Fortunately, the B2B payments space is evolving to facilitate just that.