As the business world goes automated and digital, payments are following suit at an increasing rate. The way businesses manage currency and make payments has migrated from manual processes and channels, to purely digital methods. Checks, for example, are becoming like cards and online platform mechanisms.
This migration would already be done and digital if the business-to-business (B2B) payments process wasn’t so complex. When businesses submit B2B payments in-between entities, the process is physical & cumbersome. It involves processing document based invoices, waits of 30-to-120-days, multiple banks and commerce platforms, and phone calls to perform tasks, inquiries, and other actions. And when those payments happen with overseas entities, even more friction can be expected as part of the process.
As the Globys Research report on Invoicing shows, payments are a top pain point for sellers and buyers alike, because the existing process is cumbersome, expensive, and far too often risky. And though electronic & digital solutions like Globys Payments exist, they’ve been perceived as too costly and complex to be accessible to the majority of businesses. However, momentum is starting to shift, and barriers preventing firms from digitizing their B2B systems are slowly starting to crumble away. B2B payments are finally catching on at the same rate as consumer payment are trending, although it’s still moving slower than most business leaders would hope.
The detailed effort of collecting, managing and securely storing supplier data has been a significant barrier to automating B2B payments, but it’s finally happening.
Automating 100 percent of business payments with the kind of user experience people have come to expect on the consumer payments side requires more time, effort and investment. So, it’s understandable why B2B payments have been watching consumer payment trends to model and adapt on larger scales as able and feasible.
As the market for B2B sales continues to grow, choosing a trusted and efficient payments provider will become all the more important to differentiate your products and services – and provide the experience your customers are hungry for.