B2B Payments: Key Trends to Keep up within 2022

B2B payments have become incredibly common in recent years, and 2022 only confirms the continuously growing trend. Processing trends and transactions are recorded by leading business software products during a given period of time. 

What is a B2B payment system? What do you need to know about B2B payments? In this article, you’ll find the key trends of B2B payments that cover the complete range of information regarding payments and the business industry.  From Account Payable and Receivable automation to mobile apps for B2B payments to securing all your transactions, you’ll find everything you need to know here.

AP/AR Automation

Accounts Payable and Accounts Receivable automation are some of the B2B payments trends to keep in mind in 2022.

Accounts Payable automation is not a new phenomenon; in fact, it has been around for more than a decade. It allows your financial team to use automated accounts payable processes to remove manual tasks and give more control over financial data as much as possible. On the other hand, Accounts Receivable automation helps collect payments from clients in a more secure way and optimize the invoicing process between companies and their customers.

According to PYMNTS, very efficient Account Payable departments use automation process invoices at an average of 2.9 days for approximately $2.18 for each invoice.

Needless to say, this will allow your organization to make remarkable savings to be invested in your department. But why should you pay attention to both AP and AR automation in 2022? There are a few reasons why this kind of automation is helpful to any business, so let’s jump into the benefits of both.

First of all, this is a small change that will give your team so many benefits and boost productivity within your organization. Secondly, you will be able to create more accurate invoices. While we humans make mistakes, robots are more likely to avoid these same mistakes as they were programmed to. 

Last but certainly not least, and as mentioned previously, using automation within your team will allow your employees to focus on more critical tasks. In fact, the less time they spend on correcting basic mistakes and repetitive tasks, the more time they will have to deal with clients and save money for your company.

Subsequently, you should deal with your expenses through different roads, eventually affecting your business’ general prosperity. An integrated payment system using Prometheus as a service can add an extra layer of security to your system by allowing you to review any metrics related to payment transactions.

Real-Time Payment Systems – The New Way to Bank

The popularity of real-time payment systems has grown considerably over the past few years due to their flexibility and ease of integration. They allow companies to process electronic invoices in real-time, allowing them to take benefit of cost reductions that occur as a result of faster processing.  The difference with traditional payments is that the payment will be processed instantaneously. While they seem immediate, their settlement process usually takes up to 72 hours and may, therefore, delay the payments made to your clients or your business.

Real-Time Payment Systems (RTP) let businesses skip the time-consuming task of sorting through paperwork, reduce payment costs, give higher value to customers, and eventually be more innovative and even increase market share. The fact that Real-Time Payment Systems is compatible across a wide range of operating systems and hardware means that any company, regardless of its size and location, can use an RTP system. Real-Time Payment Systems have grown in popularity since their inception due to their speed, reliability, and overall effectiveness. They are extremely useful to all types of businesses, as they reduce costs, streamline operations and increase profits. In plain words, real-time payment systems are the future, and you should take advantage of them to take your finance team to the next level.

The implementation of mobile apps for B2B payments

Today, millions of people use mobile apps to make online purchases, receive updates, and perform multiple tasks.  Since the dawn of the smartphone, the internet has become a way to facilitate mobile apps’ penetration into the corporate world as well. Also, mobile apps for B2B payments have become a norm in this era of advanced technologies. With the help of mobile payment systems such as Apple Pay, Google Wallet, or Paydiant, organizations and users can benefit from them in multiple ways.

Additionally, mobile payments add an extra layer of security. In fact, with identification methods such as fingerprint, facial recognition, and 2-step verification, businesses can remain assured that the amount of fraud is drastically reduced. Another benefit of using a mobile B2B payment system is saving money on processing fees. In fact, traditional payment methods have lots of hidden costs, and going paperless will allow you to save some money and invest it in their team.

Enabling instantaneous transactions with cloud-based technology

Other than mobile payment systems, cloud computing is a popular system among B2B organizations nowadays.  First and foremost, cloud technology has become extremely popular in the past years, and all organizations can benefit from its ease and speed. 

Apart from that, B2B buyers are increasingly interested in working only with organizations that offer cloud-based technology payments. Needless to say, this is a critical point to consider. This infrastructure is usually more secure than other B2B payment methods, and they tend to be much less attacked by fraudsters than traditional on-premise systems. Cloud-based technology has only shown its benefits and is certainly here to stay.

Integrated Systems Are the Way of the Future

Integrated B2B payment systems are the future and for several reasons. But what is an integrated payment system? An integrated payment system is basically a network that is connected to all other software within your organization. For instance, a company that uses an automated payment system will pass each transaction to it and, therefore, will communicate all of them with your systems in real-time.

Talking about the benefits of using an automated B2B payments system, and to start with, it will save you time and will also reduce the costs. In fact, an automated solution can drastically reduce both time and money spent on manual processes executed by employees. In addition, a modern automated, integrated payment system will allow you to increase the accuracy and efficiency of your processes. Using an integrated system will make your tasks less error-prone and, rather, more efficient overall. Last but certainly not least, it will help improve your cash flow. Imagine having dozens of thousands of debit and credit card drawbacks. Your cash flow will definitely be affected.

To sum up, integrated payment systems will allow you to process all transactions as soon as they go through, will save you time and money, and, needless to say, manual labor too. The more payments you receive on multiple avenues, the more delay your payment transfers will have. Subsequently, you should deal with your expenses through different roads, eventually affecting your business’ general prosperity.

Secure your B2B payments from fraud attacks

Fraud is a rising threat to businesses, and it is essential to protect yourself against it by securing your B2B payments from fraud attacks. According to a report by the Association for Financial Professionals, in 2019, 81% of businesses reported having experienced attempted or actual payments fraud.

Image source: https://dynamic.afponline.org/paymentsfraud/p/2

This is why securing your business’ online payments is so important. As well as limiting the losses you incur when someone uses your personal information without permission, ensuring your B2B payments from fraud attacks also helps to protect your business.

How can you secure your B2B payments? 

As you probably understood by now, and just like traditional transactions, there is always a risk behind B2B payments. For your data to remain safe, we recommend securing all your dealings with technical safeguards. This way, your organization will be able to track all incoming and outgoing transactions and check all payments rather than relying solely on their provider.

Last but not least, considering Tokenization will allow your organization to replace your clients’ sensitive data with an encrypted token to be then able to store the original data in a cloud-based vault. Securing all your transactions is a must if you want to keep your data safe and stay away from chargebacks.

Offering multiple B2B payment options

Offering multiple payment options to a business can be very beneficial to your organization.

A business can take advantage of many different payment gateways and merchant account providers by offering a merchant account. This will give them more options for payment processing and increased profitability due to reduced risk and chargeback rates associated with unsecured payment processing methods. In addition, offering payment processing solutions with a merchant account can be done inexpensively by contracting with a provider through an affiliate network, gateway program, or third-party processor.

What are the most popular B2B payment methods?

Who says B2B payments say multiple methods. The more payment options you provide, the more interested your business partners will be. 

First of all, and as evident as it sounds, you’ll want to offer the payment with a credit card.

Also, ACH Payments (Automated Clearing House) are a popular way to pay. In fact, it is fast, practical, efficient, and most importantly, extremely simple for B2B recurring payments. Some organizations won’t charge you anything for using ACH and that’s another reason why you should choose it. According to a report by Statista, 45% of small firms and 43% of big firms worldwide were using ACH real-time payments in 2019.

Image source: https://www.statista.com/statistics/1083118/usage-interest-in-emerging-b2b-payments-services/

Wire transfers are another traditional payment method to consider, especially if you’re doing business overseas and want a real-time payment.

IVR payments give customers the ability to make automatic and secure payments over the phone. For example, customers can enter their credit card or debit card numbers into a keypad, read them out loud by pressing “1” for digits 2-9 and “0” for asterisks (*), or send ACH eChecks from up to 25 accounts at any time of day!  This is convenient because it frees agents who handle customer issues. Hence, they have more freedom in taking detailed questions and making sales calls instead of just being stuck with answering billing inquiries.

Lastly, digital payment methods such as PayPal, Google Pay, or Venmo are popular ways introduced in recent years and attracted many organizations. These digital platforms are usually used between two entities and typically avoid involving bank accounts. However, it is important to note that a fee will be charged when paying with those.

Offering payment options to your customers is only part of the solution to high payments. 

Conclusion

This was your complete guide about B2B payments and everything you needed to know about them as well as keeping all your transactions secure. From upgrading your system and installing Account Payable and Receivable automation to enabling instantaneous transactions with cloud-based technology to offering multiple B2B payment methods, you now know what to do.

Of course, technology has changed the entire way we deal with other organizations and the way we make and receive payments. For this reason, we should embrace these new B2B payment systems and integrate them within our finance teams. So invest in your payment systems, upgrade the payment methods you accept, focus on real-time payments, and take advantage of cloud-based and digital platforms to stand out from your competitors.

Author bio: 

Maria Mladenovska is a Content Manager at ThriveMyWay – a one-stop resource for learning how to make money online on your own terms. She is passionate about marketing and her curiosity to learn is ever-evolving.

She focuses specifically on writing and editing engaging articles, blog posts, and other forms of publication. You can connect with her on LinkedIn or Twitter.

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