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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 companies adapt and respond to this.
This rapid level of adaptation cannot be said of the B2B sector, which is slower in offering the same to its customers.
Brian Gaynor, VP Product & EU CEO at BlueSnap explains that B2B customers also want to experience the same convenience when paying as a consumer. They want the same level of choice and flexibility – without having to use physical payment methods – whether that’s cash or cheque. As a result, and with findings suggesting that B2B customers now buy online 74% of the time, we are slowly seeing the B2B sector introduce new digital payment options.
But is this enough? Progress has been made, but not nearly at the speed expected.
Barriers to embracing digital payments
In some cases, existing accounting systems prevent the company from switching to electronic payments or moving away from paper checks delivered by regular mail. The perceived costs and headaches of implementing a digital payments platform have left others hesitant. And sometimes B2B companies are simply reluctant to disrupt the processes their customers have become accustomed to.
Companies that have been slow to adapt not only risk not being able to meet customer demand for better payment experiences, but may also miss out on some of the following broader business benefits:
Digital payments have an impact on broader business operations
The breadth of capabilities offered by a digital payment platform extends far beyond the basics of conducting 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 forecasting across the business with greater accuracy. Companies with multiple industries and different types of invoices going to a wide range of customers can automate processes based on specific rules and well-defined workflows, reducing errors and chargebacks. In summary, an improved payment system improves operational performance across the business.
Improve the customer experience with digital payments
Payment and billing information is the oil for any company’s customer support, whether B2B or B2C. When customers interact with service representatives and data is not readily available, or is in siled Excel spreadsheets that are difficult to share among teams, frustration is certainly to be expected. B2B companies that adopt digitized and modernized payment options will also have greater internal visibility and access to actionable information, improving customer service, increasing cash flow and creating opportunities to upsell new products and services .
Streamlining business functions and promoting productivity
According to a recent study, processing a single invoice can require the involvement of as many as 15 people putting in 11 hours of work. Often it is the outdated accounting systems that cause the hindrance, forcing accounts payable and accounting teams to spend a lot of time reviewing invoices, determining which ones need to be paid, implementing customer requests, checking CRM systems and emails , and so forth. A modernized payment system reduces all of these inefficiencies, allowing B2B companies to accept and process payments, contact customers about non-payments, issue refunds, and increase the speed at which outgoing invoices are paid, while freeing employees to spend time on to spend more. substantive issues.
It’s no secret that many companies are stuck in their ways. However, with an ever-evolving payment landscape for both B2B and B2C, this is not something they can afford any longer. Digital payments have become a necessity in our daily lives, and that necessity is now becoming apparent for B2B customers who no longer want to be tied to limited payment options.
Embracing digital payments streamlines processes, promotes productivity within companies and ensures faster payments. Those who are not yet on board the digital payments wave are at risk of being left behind.