B2B Payment Solutions Guide

Statistically, around 96% of Americans buy goods or services online at least once per year, and the global transaction value of the digital payments segment reached US $5.204 billion in 2020. As you can see, digital payments in B2C have become the most preferred payment method because they are fast and seamless. Nevertheless, the B2B sector has lagged behind because it has a longer processing time for payments. Even today, some companies are still using paper checks, bills of lading, or open invoices for big transactions. And it’s clear that all these procedures take a lot of time, sometimes, even weeks.

If you wish to stop this nightmare, B2B payments integration might be a good solution for you. And in this insightful post, we’ll take a deeper look at the fundamental benefits of business-to-business payments and review the most popular services for you to make the right choice. Get comfortable and have a look!

Key Types of B2B Payments

Before we move on to reviewing the advantages of B2B digital payments, let’s check the most popular types of them.

Credit Cards

The main benefit of credit cards is that they provide a convenient way to float cash. On top of that, such payments can be easily tracked. If a credit card is mostly used as a debit card, it can be a very useful form of payment. Virtual credit cards are usually attached to your regular credit card number.

ACH Payments

ACH or Automated Clearing House is a well-known form of B2B digital payments, which guarantees fast payments. This transaction type moves from one entity to another using bank accounts and routing numbers. Companies opt for ACH payments because they are fast, cost-effective, and allow cash flow control.

Wire Transfers

It’s a fast digital form of payment that makes B2B transactions simple. This payment type is mainly used for international transactions. When the funds are transferred, they become available almost immediately. In this case, the batch system is not used, so wire transfers have a quicker turnaround time.

So far, two types of wire transfers are used: digital and cash. In the case of a digital form, funds are transferred electronically from one account to another one. When a cash-based wire transfer is used, money is delivered to an office, where a recipient must collect it personally.

Digital Payment Platforms

This is where an online platform from a trusted fintech brand is used to transfer funds between accounts. The cash flow is performed between two entities, and bank accounts aren’t used. The most well-known services are Google Pay, Skrill, Venmo, PayPal, etc. However, there’s one shortcoming of this B2B payment processing form — too high fees.

Paper Checks

Although many businesses prefer digital solutions today, some companies still use paper checks. This payment type allows companies to monitor cash flow as they come with a definitive audit trail. What’s more, you can always trace checks and there’s no need to deposit them immediately.

Cash

Of course, cash is always an option. The main benefit of cash payments is that there’s no need to pay fees. Paying with cash is the fastest way to pay for goods or services.

2021 Trends in B2B Payments

Surely, the market is growing at a fast pace. If you want to get the most out of B2B payments, you need to keep track of the latest trends in this niche. So let’s move on to discussing the most common movements in this industry before we analyze the main benefits of using B2B e-payments.

Real-time processing

A real-time payment is a trend that is becoming more and more popular. So far, we have many immediate payment services that hit the market regularly. Modern business owners require convenience, speed, and security for their online payments, and real-time processing can provide them with these benefits.

Mobility

The convenience of using mobile devices for B2B transactions can’t be overestimated. A mobile platform provides autonomy and the possibility to accept the order immediately. Moreover, this also gives businesses more automation and flexibility.

Peer-to-peer payments

Today, it's one of the main trends in B2B payments that guarantees speed and reliability. Peer-to-peer payments allow companies to make timely payments quickly and easily, as in this case, transferring money from one user to another is accomplished through one click of a button.

Overall, your business will surely benefit from B2B electronic payments integration because when it comes to B2B online payments, you won’t be dealing with paper checks. You’ll surely make your payments faster and forget that nightmare related to paperwork. However, if you have never done this before, it can be challenging for you to find the right tool. Let’s move on to reviewing the best tools that can be used for making online payments.

Popular B2B Payment Solutions

Check up on this comprehensive overview of the best B2B payment options.

ACH payments

ACH transfers allow users to send and receive money quickly and easily. The transfers are usually made via the ACH network, used for moving money between different US bank accounts.

Positive aspects:

  • Speed and ease;
  • Lower cost per transaction as compared to other tools;
  • Enhanced sales conversion;
  • The ability to pay online.
Negative aspects:
  • Businesses must pay for set-up costs;
  • Deposited funds are not always available immediately.

Stripe

So far, it’s one of the most widely used solutions that features an open API, which pursues a few goals — speed up the payment process and avoid all possible issues. The transaction cost is 2.9%. Let’s get down to the main strengths and drawbacks of this tool.

Positive aspects:

  • Users of this solution will never be redirected to another page;
  • The service is straightforward to use;
  • A customizable system.
Negative aspects:
  • Need to have a professional staff developer who gets on how to use the open API;
  • Cancellations aren’t properly processed.

Transferwise

This service is based in the UK and specializes in providing global payments. It is fast, easy to use, and secure. Plus, the service allows users to have multi-currency accounts to accept, spend, and hold funds. You can sign up for free, but a transaction fee will be added to your transactions. There’s an online calculator for you to know your rates.

Positive aspects:

  • Quick transactions;
  • Affordable rates;
  • Easy-to-use platform.
Negative aspects:
  • A recipient must also have a Transferwise account to receive transfers;
  • No digital wallets.

Square

This platform was built with simplicity in mind. It can process transactions for no extra fees and contracts. This system can accept invoices, key-ins, appointments, and online payments. What's more, you can use their open API to build your own solution. The pricing fee is 2.6%

Positive aspects:

  • No monthly subscription fees;
  • Free card swipe hardware;
  • Many useful reporting tools for a thorough analysis.
Negative aspects:
  • High fees and they are constantly growing;
  • High cost of instant deposits.

Tipalti

So far, it's one of the three most trustworthy B2B payment solutions. This system pursues one goal — to make payments fast and straightforward. It's a well-known global partner payment automation system that simplifies the whole process of making outbound payments.

The main reason why people from all over the globe use this platform is that payments can be made in the local currency in more than 190 countries. The pricing policy of this platform begins at $149 per month.

Positive aspects:

  • Powerful Supplier National Portal for international and national currencies;
  • The service is available in 196 countries;
  • Powerful automation functionalities.
Negative aspects:
  • It can be challenging to look for payees on their system;
  • The poster dashboard is sometimes slow.

Remitly

This is another payment system based on mobile technology to make online transactions. The key reason why customers opt for this service is that they offer no hidden fees. Plus, it's faster as compared to other systems. With this solution, you'll be able to accept cash from any location in minutes. On top of that, you can also send money to any mobile account within a few clicks.

When you use their free account, it will take 3-5 business days to transfer money. However, if you wish to get funds immediately, you'll pay $3.99 per transaction.

Positive aspects:

  • Safe currency conversion;
  • Clear interface;
  • Low transfer rates.
Negative aspects:
  • Sometimes, it takes up to 30 minutes to make a transaction;
  • Not all countries can use this service.

Summary

Overall, if you have a modern business, you need to keep track of the latest trends in the digital world and constantly move forward. Flexibility is of utmost importance these days, and when you offer traditional payment options along with digital B2B payments, you’ll surely benefit! It’s not just smart, it’s mandatory! You shouldn’t ignore the new frontier of online payment solutions.

We, at EXBsoft, understand this tendency. If you are currently looking for a trusted partner that will help you build an advanced commercial payment system or integrate a B2B payment system, don’t hesitate to contact us! We have many years of experience in this area and know how to build powerful billing networks that can speed up payment processing and decrease transaction cost for your company.

Digital payments are here to stay because they provide a better level of safety and allow businesses to become agile. So, it’s a sin not to integrate this solution into your business.