While the digital universe has transformed the way businesses operate in nearly every area, B2B payment technology has lagged behind in most respects. In fact, you’re probably handling your accounts payable and receivable in exactly the same way they’ve been handled by small business owners for decades, Excel spreadsheets included.
For the most part, this is due to a combination of dense regulatory and compliance concerns and a hesitance to sideline “tried-and-true” processes in favor of new technology. But even the most traditional business methods can’t resist disruption forever, and an explosion in innovative consumer payment technology has built momentum for technological change in the B2B world.
B2B mobile payments
As millennial consumers threaten to make a verb out of “Venmo” and even big retailers like Dell and Microsoft accept Bitcoin (through PayPal), B2B mobile payments are well established. Until recently, the B2B world has mostly taken a “wait and see” approach, but settling business invoices is set to become the next big mobile payment trend.
The integration of mobile options is in many ways long overdue, as most businesses have long since transitioned from settling invoices via paper checks to online solutions. In 2004, more than 80 percent of companies paid other businesses with paper checks, but that number had plummeted to only 50 percent by 2013 and has dropped even further in the years since.
With an explosion in cross-compatible accounting platforms and versatile software that can integrate seamlessly with mobile technology, the latest wave of B2B mobile payment apps will finally put a focus on leveraging mobile’s convenience and ease of use. From drawing up invoices to issuing receipts, you should soon be able to settle a business bill just as quickly as you would a restaurant check-split.
Features of B2B mobile payments
1. Streamlined integration
One of the most important attributes of your solution is its ability to integrate seamlessly with your existing payment processes. Look for a solution that is compatible with your existing back-end systems, such as your accounting software and the banks and processors whose relationships you have already cultivated. Not only will products that integrate easily with your systems help you speed up adoption, but they will also provide a more unified experience for your customers.
2. Real-time payments
Mobile payment systems allow businesses to get paid in real time, closing cash gaps by avoiding wait times as checks or invoices move through the mail. Mobile options can even be quicker than standard electronic payments, as they can take advantage of face-to-face meetings, rather than requiring both parties to return to work and sign onto their computers to process a payment.
3. Accept multiple payment methods
As B2B buyers demand more ways to pay, a mobile payment tool can equip you to accept card payments, not just cash or check, when meeting with customers in person. With a mobile system optimized for B2B payments, you can take advantage of Level 3 processing to qualify these card payments for the lowest possible interchange rates.
Trends In Mobile B2B Payments Solutions for 2018
The following listed below are the trends that will be gaining ground as B2B mobile payment in 2018:
Bitcoin is a virtual banking currency used on the internet. It’s been available for a number of years for consumer payments. Today, it’s gaining ground heading into 2018. Transactions leveraging b2b payment solutions take place between users directly, without requiring any intermediary. The bitcoin is a simple data file that contains “blockchains.” The blockchain has an identifying address, and a ledger that stores the history of who bought and sold the coin. Bitcoin is a type of digital currency that is exchanged via a blockchain. The blockchain is essentially a digital ledger of every transaction that allows users to verify their Bitcoin payments. Using Bitcoin and blockchains does not require the input of confidential information creating a supposedly incorruptible system, and it is all done independently of a central bank. It’s basically the equivalent of using cash on the Internet.
2. Completely Automated Payment Technology
Today, a new innovation in payment automation is being used that can make all of a business’s payments electronically. This trend allows for producing electronic payments for all of a company’s suppliers. This trend is gaining ground right now and will continue to help business grow in 2018.
3. Global transaction
Mobile B2B allows global B2B payments where foreign exchange fees, taxes and extended processing times are typically cumbersome and restrictive. With the use of automated accounts payable options that integrate the appropriate security features, cross border challenges can be instantly avoided. This makes it increasingly easy for businesses to expand into new markets where fraud rates may be high and credit card usage is not offered.
4. Credit card
Credit cards are another B2B payment method. They make it easy to access credit and are convenient. They tend to be fairly secure, and if there is a dispute, then the credit card company will step in and help you. However, they can be an expensive payment method with numerous costs and fees attached to each transaction.
The term FinTech has been evolving over the years and has catapulted into the mainstream as next gen b2b payment has been widely adopted my most industries. Fintech refers to technologies that mobile payment solutions technology introduced in back-office operations for consumer and financial trade institutions. Basically, it referred to whatever system and service people used to transact their financial business. The technology for b2b payment solutions focused on the consumer market with internet banking. The convenience of doing everything from paying bills online to depositing checks via smart phones gained rapid acceptance of this technology. These technology will be a very good way to grow business in 2018.