The B2B payment landscape has been changing rapidly over the last few years. Fintechs and so-called “challenger banks” are disrupting the way how businesses execute payments.
While B2C payment processing is relatively straightforward – customers pay via one of the offered payment methods when they checkout – B2B buyers are used to negotiate terms. Most B2B customers expect net 30 or net 60 options with discounts for early payments. While B2C customers have no choice other than accepting the offered terms, B2B customers often require to pay via their usual methods, rather than using the seller’s payment options. Thus, retailers need to be aware of the current B2B payment trends and use the advantages of new options available.
Popular eCommerce B2B payment options of today
Currently, the most used payment methods in B2B eCommerce are credit and debit card payments, wire transfers, Automated Clearing House (ACH) options, checks, and fintech payment platforms.
Credit and debit card payments are mostly used for smaller transaction amounts. The reasons are credit card limits, security concerns, and high fees.
ACH transactions are a popular payment method both in B2B eCommerce and traditional B2B commerce. They are like a check, but in digital form and funds get pulled directly from the buyer’s checking account. Instead of writing out a paper check or paying with a debit or credit card, the money moves automatically. Buyers prefer this method because it’s convenient and safe; sellers like it because they can get access to funds quickly, often within just one working day.
Businesses that sell to retailers increasingly demand the option to pay with PayPal, as most retailers are accepting PayPal payments from their customers. Thus, they are familiar with the platform and can keep all payments within the same ecosystem. Additionally, PayPal offers exceptional fraud protection. For the same reasons, Amazon Pay has become popular among retailers that do significant volumes on Amazon.
The future of B2B eCommerce payment is digital
The eCommerce B2B payment space keeps evolving, and more innovative concepts keep popping up. Fintech providers like Revolut and TransferWise have entered the B2B payment space as well.
Both offer excellent tools to manage multiple currencies through the use of online tools with low and transparent fees. These services often also include prepaid cards that employees can use and tools to track expenses and income.
Blockchain-based payment methods are still early stage but are becoming more popular due to their excellent safety and low transaction costs. Blockchain-based security systems are also becoming more prevalent, as they make it incredibly difficult to alter or falsify documents. Export Portal’s trade platform uses blockchain technology for the same reasons – to ensure maximum security for our users’ transactions and documentation.
While the complexity of B2B transactions so far has presented challenges to the adoption of new payment technologies, the market has started to change. Today’s B2B vendors are more comfortable with digital payments, and new platforms will keep revolutionizing the industry.