B2B Payments in 2021: A Guide

by Simran Kashyap Hi Everyone, I am Simran. I love to read and write

B2B Payments:

B2B payments are transactions made between one company and another. For example, a medical institution will require IT solutions, and a restaurant chain might acquire fresh produce from a local supplier. When one organization invoices another, they are dealing with a B2B transaction. They differ from B2C and P2P payments because of other processes which make B2B payments more complex.

Popular Types of B2B Payments 2021:

1.     Credit Cards

2.     ACH Payments (Automated Clearing House)

3.     Wire Transfers

4.     Digital Payment Platforms (Tazapay, PayPal, Venmo, Google Pay, Dwolla, Skrill)

5.     Paper Checks

6.     Cash

B2B Payment Trends 2021:

Online B2B transactions have increased over the years. Traditional methods are being abandoned for virtual payment systems. The pandemic has only accelerated the digitization of payment processes between businesses and suppliers. Digital B2B payments are quicker and more efficient in issuing, receiving, and processing payments and help improve cash flow.

Real-Time Payments:

Suppliers are looking for quick and reliable payments from businesses. Real-time payments will ensure immediate and accurate payments. Both parties will be notified in real-time at every step of the transaction. It will provide more transparency and timely action. By making real-time payments, one can pay quickly and promptly. It undoubtedly generates goodwill between the parties. Data is updated and secured for future reference. This is unlike manual payment methods.

Cloud Payment:

Cloud payment solutions offer immediate payment with increased security and convenience. In cloud-based solutions, payment processing can be done anywhere and at any time. It offers more flexibility, smooth cash flow, better security, and automation. Late payments can be avoided in this way, and supplier-buyer relationships are well maintained.

Fintech:

Fintech companies, with their constant innovation and use of new technology, focus on fast transactions. Banks also tie-up with fintech companies to reduce costs and improve processes.

Mobile Payments:

The pandemic has restricted manual transactions and accelerated the need for mobile payments. Security features, ease of access, discounts, cashback, and provision of instant payments have increased the need for mobile payments. Fintech companies establish connections with organizations to develop apps for their customers.

Timely Order Fulfilment:

Timely order fulfillment forms the basis of the solid supplier-buyer relationship. Timely dispatch of goods must be met with timely payment for the supplies.

Digitization of payment processes leads to prompt execution, transparency, and security. Payment and timely acknowledgment from the buyer are essential factors in a B2B transaction.

Reminders and Actions Automation:

An organization might have several suppliers working for them with different payment timelines. It would be tough to track and maintain records manually. Here automation plays a massive role- making timely payments and tracking the amount.

Automation is driving the change in payment methods. Disruptive payment technology has helped people connect from around the world. In the consumer space, paper checks are being replaced by electronic transfers. However, the B2B payment arena is still evolving and slowly moving towards real-time electronic payment options.

Taking a strategic approach in setting up B2B payment processes can be greatly beneficial to finance departments. Automated solutions can help organizations save time and energy when it comes to payment processing. Tazapay is a cross-border payment service provider that offers a secure platform for B2B transactions.

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Created on Sep 30th 2021 06:27. Viewed 81 times.

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