B2B payments: definition, methods, and trends

Business constantly evolves. Companies are seeking proper ways to process their payments. Business transactions are evolving, too. If you are here, then you are eager to learn more about B2B payments, typical payment solutions, and trends in B2B payments.

This comprehensive guide will explain the intricacies of B2B payments. Let’s examine the following sections.

B2B payments explained

B2B payments involve two business entities. One supplies goods or services and issues an invoice with purchasing details. At the same time, another business side receives an invoice and pays for these goods. These payments can be one-time or recurring, depending on contractual terms between the two businesses. Shortly, B2B payments are an exchange of goods for payments. 

How do B2B payments work?

Business-to-business payments work opposite to business-to-customer remittance. These differences are shown in the table below. 

The general step-by-step process for B2B payments looks this way:

1. The customer initiates the purchase. The buyer sends payment details, such as the amount of payment, quantity, SKU, payment terms, payment methods and other essential information.
2. The seller’s team approves all the payment details.
3. The seller creates an invoice in an accounting system and sends it to the customer.
4. The buyer receives the invoice and puts all the necessary data in the customer’s accounting system.
5. The purchaser makes a payment via one of the chosen settlement methods, which includes the necessary transaction details.
6. Each side creates corresponding entries in their books.

Modern automation systems simplify this process, eliminating labour costs and time spent on each step of the algorithm mentioned above.

The most popular types of B2B payment solutions

Because business relationships between companies are complex, many methods of B2B payments have appeared. They could be divided into two main types: person or process-based payments and automation-based payments. Each of these types involves several other kinds of remittance. We will discuss the most popular payment methods in the next section.

Process or person-based payments

This type is typical for settlements that don’t require complicated procedures and transaction processing. These payments could be made manually without much automation or complex software. The main kinds of person-based remittance are described below.

Cash

Businesses still use cash payments, especially small and medium-sized companies. Cash has several advantages, such as not requiring transaction fees. However, tracking and accounting for them for over a year is challenging. 

Paper Checks

It is one of the most popular payment methods worldwide. Even though COVID-19 has significantly changed the B2B payments landscape, over 40% of B2B transactions are made through paper checks. There are a few benefits of using this old-school method. One of them is the ease of accounting. It is simple to track and cash checks even without involving banks in such settlements.

However, these kinds of B2B payments still have a few drawbacks. The critical downsides are payment processing time and the manual nature of remittance. The payee must send a check to the payer via the post office, which could be lost, leading to payment issues.

Wire transfers (or ‘credit transfers’)

This banking operation is one of the fastest ways to proceed with payments. During the day, a transaction is made from one bank to another. You just need your IBAN account or another account. Such types of B2B payments have a few advantages: lower transaction fees and higher speed of operations. However, you need to have a connection between the two banks. If they don’t communicate with each other, those remittances cannot proceed.

Automation-based payments 

B2B payments have developed over the decades. New types of transactions that are processed automatically have appeared. We will discuss each of them below.

Credit cards

Businesses use credit cards for small operations because of their simplicity and flexibility. You can use them via smartphone or any other gadget anywhere. A credit limit is also helpful in managing cash flow because you can pay for goods or services later after a specific time, according to the agreement between you and your bank.

The critical disadvantage of this payment type is that you need to have a larger limit for B2B transactions. Another drawback is high transaction fees, i.e., 2-3.5%. For instance, if you have a payment of £100,000 and the transaction fee is 3%, you must pay £300. And this is only one operation. If you have hundreds of them, you must pay an enormous commission.

That is why most businesses use credit cards for relatively small payments that don’t exceed £1,000. And if you don’t pay on time and exceed the limit of transactions, you form an overdraft. Then, you have to pay a specific interest on your debt.

Debit cards

This sort of payment works similarly to credit cards. It has the same advantages and disadvantages. The upsides are ease of use and reporting, while the downsides are high transaction fees and limits. However, you can use them only within the limit established beforehand. This characteristic helps you plan cash flow and is effective for an instalment or other recurring transaction.

Corporate cards

Expense tracking and reporting are the most valuable features of corporate cards. They are a preferred payment method for low-value business transactions. Corporate cards also have a credit limit option to help manage cash flow. 

The only drawback is the credit limit of corporate cards. If the limit is too low, making high-value B2B payments on time will be impossible. To avoid these situations, ensure the limit of the corporate card is high enough for the needed operations amount. 

Automated Clearing House payments (ACH)

This kind of remittance involves electronic funds transfers (EFT), eChecks, electronic bank transfers and direct debits. Automated clearing house payments (ACH) is a network that provides settlements within one business day with low or zero transaction fees. The main principles of ACH payments play out in the same way as for checks and credit card payments. Automated clearing house, however, has robust security features. It can be used for payroll services, such as direct deposits.

The National Automated Clearing House Association (NACHA) regulates ACH payments. Despite its higher security and speed, the main downside is that not all banks or other financial entities are connected to this network.

Wire transfers and ACH have the same or similar working principles. However, there are some differences that we must mention.

• ACH payments have lower commissions or are often without fees. Wire transfers have higher payment fees.
• ACH processing takes longer than wire transfers. Funds land in one of your bank accounts using electronic payments.
• You can’t refund or cancel wire transfers, but any party can refund or cancel ACH bank transfers anytime.
• ACH transactions refer to domestic operations, while wired transfers are typical for cross-border payments. 

Companies use the ACH payments network mainly for regular domestic transactions. Entities utilise checks, wires, and cash for specific operations that are rare, one-off, and infrequent. 

New B2B payment gateways for payment processing

The financial technology landscape of payments has changed drastically in recent years. New Fintech companies that are compliant with banking regulations have opened. These online platforms offer midsize and small businesses checkout and payment processing services. Most of them are in the e-commerce retail and services sectors.

There are dozens of global payment gateways. Each of them works as an online portal to process transactions worldwide. This article will mention only a few that have significantly influenced the financial market. Here are the most prominent of them:

Paypal: This is one of the leading payment systems in the financial industry. It provides users with fast and secure operations based on peer-to-peer payment networks. Transaction fees can exceed 2,9%-5% depending on the amount. The payment platform doesn’t support some international currencies. This can limit overseas electronic payments between businesses and customers in certain countries.

Stripe:It is a platform that provides customised payment solutions via APIs and integrations with the company’s business processes.

Google Pay:This B2B payment service is natively connected to G-suite, Gmail and other applications and can be integrated with customers’ business processes.

Apple Pay: This payment provider works on iOS technology, mainly used by e-commerce services.

Venmo: PayPal owns Venmo and supports P2P transactions between businesses and integrations within the PayPal ecosystem. 

Dwolla: This digital platform offers a single solution that streamlines transactions by reducing complexity and improving flexibility. Its reporting features enhance the visibility of financial activities.

Skrill: This payment platform has lower fees than PayPal. It also offers more comprehensive currency options, faster transfer velocity, and flexibility features. However, Skrill has funding limitations in specific locations.

Other B2B Payment methods

Business processes require the use of versatile settlement methods, some of which we mentioned above. However, companies can use other techniques to manage cash flow and control payment transactions easily. Here are a few different methods that firms use for proper financial management:

Buy now, pay later (BNPL)

Customers opt for this solution, which allows them to choose a payment plan with instalments rather than pay the whole amount for the goods upfront. This payment method has become increasingly popular because it simplifies and automates the company’s payment operations.

Workflow payments

This payment method works when a customer pre-authorised a credit or debit card and is charged every time goods or services are delivered. Workflow payments are secure for clients because they don’t need to transmit their personal information to anyone. Businesses also win because they receive payments for goods and services on time. 

Pay one, pay all invoices

This payment solution is relevant for companies with multiple outstanding invoices. Paying each invoice separately would be cumbersome. So, you can form a batch of invoices and pay them once rather than separately. This payment method saves time and money for businesses and customers.

Trendy B2B payment methods

Digital wallets

A digital wallet or eWallet stores financial data. You can use an e-wallet on your mobile phone or laptop to make payments without using credit or debit cards. Such platforms use QR and NFC technologies for quick B2B payment processing. 
Digital trends in B2B payments

The B2B payment landscape has changed due to several factors. Some are connected with the COVID-19 pandemic, the economic crisis later on and disruptive technologies in the financial sector. Let’s reveal them one by one below.

1. Decline of paper checks

Businesses encountered a few payment issues during the COVID-19 pandemic. According to Businesswire’s study, 68% of small businesses claim that cash deposits took too long, so they decreased their use of checks and cash during the pandemic. This press release noted that no other payment method hasn’t caused such issues.

Firms have switched to new payment methods that allow flexibility, speedy transaction processing and compliance. The rise of SaaS, software development companies and other remote businesses that no longer use paper checks caused their decline. Financial institutions have done several studies on this issue. The Federal Reserve Payment Study says that the check number decreased from 2018 to 2020 (1.02%), compared to the period between 2015 and 2018, when this decline was 1.54%.

However, many businesses, especially brick-and-mortar ones, still use paper checks in their practice.

2. Rising Cybersecurity issues

The increase in internet users, businesses, and payment operations on the web has caused dramatic cyber security issues. In 2023, each cyber incident cost financial organisations $5.9 million in losses.

This negative impact caused changes in banking regulations, compliance, and significant attention to security factors during B2B payment processing. It’s impossible to imagine any online platform or banking organisation without using two-factor authentication, KYC, and other security measures to protect customers and businesses from fraudsters, scammers, and other perpetrators. 

3. Faster Real-Time Processing

Real-time payments or immediate B2B transaction processing are modern requirements for convenient, easy, swift B2B settlements. Many companies are eager to have the comfort of instant payments. Online platforms, banks, and businesses now offer the ability to use multiple currencies and conduct transactions much faster than they did a few years ago. 

4. Smart payments practice

Reducing manual work, such as matching invoices, accounting, and consideration, urges businesses to find the right solution that saves money and costs.

Modern digital platforms allow remote and contactless remittance. The necessary data is also transferred from customer to business during the processing of these payments. Dates, invoices, and payment details match automatically during money transfers. 

5. The Internet of Things: more payment devices

The IoT, or the Internet of Things, develops each year steadily. According to Statista, the number of connected devices by 2030 will be 29.42 billion. Businesses may use some types of devices as intermediaries. It is impossible to determine which way of payment regarding IoT will be used in the future. However, cyber security issues will only arise with such disruptive technologies. Fintech companies should pay close attention to protection against cyber-attacks, hacker attacks and fraudsters.

6. Peer-to-peer economy

Peer-to-peer, or P2P, means transferring payments between two parties without mediators. P2P settlements in the B2C domain, especially in the consumer-to-consumer (C2C) world, have become common. Business-to-business payments without intermediaries have also developed.

P2P payment systems have become a flexible, fast and reliable solution for secure payments because they serve as an additional option for processing B2B transactions. 

7. Increase of flexible payment options

To keep businesses afloat, many companies seek new B2B payment methods to minimise costs and schedule their settlements quickly and flexibly. The demand for such solutions creates a proposition, so more Fintech firms have appeared, offering various financial services for B2B transactions.  

8. Payment automation trends

Technological trends and automation capabilities permeated into all business processes. Manual labour declines in terms of financial transactions each year. Surprisingly, the speed of B2B payments and their consideration and accuracy have increased. You don’t need a whole team to process payments or deal with them in other ways. You need one person who works with invoices and accounts payable. 

9. Blockchain, cryptocurrency and AI

New technologies like blockchain, cryptocurrency, and AI are conquering the B2B payment domain. Each has its benefits for B2B transactions. 

Blockchain is a decentralised system that reduces the time it takes to process payments. No mediators between parties lead to fast payments with higher security features. All transactions are verified and stored in a blockchain within a peer-to-peer network. This technology almost eliminates invoice compromise and hacker attacks. The latest studies show that B2B international transactions using blockchain can exceed $1.7 billion by 2025. B2B overseas transactions will reach 745 million. Blockchain will comprise11% of all B2B international payments by 2024.

Cryptocurrency is a relatively new form of payment based on blockchain technology. Such countries as Bangladesh, Bolivia, Morocco, Iraq, Egypt, Nepal, Qatar, Tunisia, Dominican Republic, Afghanistan, China, North Macedonia, Ghana, and Algeria don’t allow such payment methods. However, this situation may change when transparency and security measures for transaction processing prove their efficiency. 

Artificial intelligence (AI) and machine learning (ML) have become popular in marketing, writing, design, video production, and financial analysis. These technologies are gradually entering the financial sector. Big data and machine learning analyse significant amounts of data to make predictions. AI is a great helper that assists in reducing manual and repetitive tasks.

10. Automation of AP/AR

Manual processing of accounts payable (AP) and accounts receivable (AR) is considered one of the most time-consuming hassles for specialists. PYMNTS’s study indicates that companies without automation spend 67% more time managing overdue payments than firms that prefer automated AR.

Over 70% of B2B companies are searching for ways to automate AP and AR processes.

Paper checks and physical signatures can increase paperwork and unnecessary mundane processes that hamper efficient accounts payable management. If you choose a digital solution for invoicing automation, you will improve your accounts payable (AP) control. Suppliers and customers will be delighted when the payment is processed quickly and automatically stored within the system, mentioning the essential payment details.

According to information from PYMNTS.com, over 60% of small businesses state that they are paying late regularly. 16% say it takes more than a month to receive payments. 

Using automation features for batches of invoices can considerably decrease the payment period for accounts receivable. Those invoices can be collected and stored in ERP systems. This saves time on accounting and assists with B2B payments.

Why do you need an alternative B2B payment processing?

Although the traditional methods of B2B settlements can work well for you, you need to proceed with different kinds of B2B payments. Each one requires a specific tool for proceeding with transactions without losing money. There are main types of B2B transactions: lower value and higher value. Depending on the type, you will need a particular B2B payment model to proceed with operations effectively. The analysis of every kind of B2B payment is described in the table below.

So, specific issues may occur depending on the number of operations and tools you use to proceed with payments. We discuss these challenges and ways to overcome them below.

The gap in B2B payments

Knowing the instruments to use for various lower-value and higher-value payments is essential. Whatever supplier communicates with you, you must serve them quickly. Reconciling different data types considering several kinds of payments has become challenging. Financial staff software requirements should be formed according to your company’s payment needs. You must create or utilise a recording and accounting system for B2B payment transactions, communication, and reporting. 

Costlier transactions

Many of your payment options, i.e. merchant of record (MOR) platforms, payment providers and payment systems, require several payment tools. Each payment platform can cost you a particular price in transaction fees. They can add up quickly to a considerable sum for your business. One tool can cost 2.5-7% in fees. As we know, there is no magic multifacet instrument for any B2B payment transactions. Ultimately, we will see a rise in commissions in your income statement.

Transaction fees are a fraction of the cost. You need to pay a certain amount for services, integration, and the costs of the software you have chosen to process transactions and account for them.

The need for compliance

Compliance is an inevitable part of the B2B payment process. The General Data Protection Regulation (GDPR), Service Organization Control Type 2 (SOC 2), and Payments Services Derivative 2 (PSD2) are not a complete list of requirements. Each regulation impacts a specific sphere of financial transactions.

GDPR aims to protect customers within the EU from data leakages and compromises. Breaching this protocol can result in severe financial sanctions for a company.

SOC2 is an American protocol that shares the idea of client data protection. The general purpose of this regulation is to control how third parties collect and manage customers’ data.

PSD2 is a European directive that stimulates emerging Fintech ecosystems. 

Complying with each financial law and regulation is possible through comprehensive cooperation with the legal and IT departments. Compliance automation simplifies B2B payments and ensures they comply with any mentioned regulation. 

Failed payments

Several types of B2B payment transactions have specific issues with failed payments.

Paper checks could be lost or damaged at the post office or failed to deposit. 

Wire transfers can be problematic because one bank doesn’t communicate with another. The wire transaction can fail because there is no relationship between the two banks or no routing address to proceed with this payment.

Credit card transactions exceeding a specific limit can fail because they are considered suspicious. 

Incorrect contact data can be another cause of failed payments. That is why you need a particular financial headcount to refresh customers’ data. 

Inability to effectively serve international customers

International trade implies that sellers and buyers can deal with different currencies. Considering factors such as currency is essential for control. If a bank doesn’t work with a specific currency, a payment cannot proceed, and the check cannot be deposited.

Diligently analyse information about international banks, their ability to serve customers and their payment requirements.

Benefits of online software for B2B payment processing

The payment gateway is the software that allows payment processing. Online payments via your bank account are not a magic pill for your business. However, it is beneficial for your company for several reasons.

Automate transaction processing: Some digital payment platforms can organise your payments on one dashboard. You can schedule your payments, and multiple transactions can be processed simultaneously.

Improve cash flow management: According to the study, 50% of small companies that commence their business worldwide fail mainly because of inappropriate cash flow balancing.

Reduces manual work: Payment applications help reduce manual work and human error and save time for reconciliation. Switching to online processes rather than using paper checks can be beneficial for several reasons. You can track your expenses reliably, robustly, and efficiently. Your team can keep all invoice records, manage AP and AR, and form reports in one place. 

The software assists in scanning and storing checks and other payment documents. Your company can also integrate online payment solutions with your ERP or other accounting software.

Enhance security: Payment gateways comply with security regulations and require two-factor authentication to protect your profile. There is no immunity to cyber-attacks and security breaches. However, the online platform still has more protection options if we compare them with paper checks that could be lost at the post offices.

Saves time and money: Eliminating the extra work by recording, storing and reporting. Your company doesn’t need an impressive headcount for managing AP and AR. New technologies reduce time spent on mundane tasks and analytics. AI assistants can help with mundane tasks. Machine learning assists in predicting cash flow patterns.

B2B payments processing online

Cutting-edge financial services are on the rise. However, following strict guidelines for the most accurate B2B payment procedures is essential. The steps you need to take are described below.

1. Select a B2B payment processing solution

Consider the options we’ve mentioned above regarding issues that may occur and the costs you need to pay for the service. Think about overseas payments and how you can handle them. Choose a solution that caters to your needs in B2B payment transactions.

2. Create a payment account

After choosing a solution, create a payment account on this platform or use information from your banking account if the online payment tool requires using the banking account data. Ensure you’ve set all security features and input the data necessary to proceed with payments smoothly. 

3. Prepare invoices for business-to-business customers

When the buyer purchases the goods or services supplied, the seller issues an invoice. It is a document where you put SKU, the description of these goods, price, date, quantity, tax amount and operation amount. Payment platforms that allow electronic signatures are an excellent option for your business because they reduce manual time for your team. 

Keep track of accounts receivable to ensure you receive your payment on time. Communicate with your customers if needed.

4. Getting paid

When a buyer receives an invoice, they must pay the amount indicated in the invoice order. Customers pay in a way that is convenient for them. Set a notification if you can receive a payment. 

5. Consolidate and report

Ensure you have all the necessary integrations with your ERP systems or accounting software to automate the reconciliation process. Ledger entries in your accounting application should match your bank statements. You need a correspondent entry in your bank statement and your books. Also, pay attention to bank fees, interests, and payment details. 

6. Prevent B2B payment fraud

According to the 2022 study, companies lose 3 to 5% of annual revenue to fraudsters. Already established delayed payment terms can be the cause of such issues. An organisation delivers products to a customer. However, a retailer receives them and disappears without paying.

There are a few typical kinds of fraudulent activities that pertain to B2B payments:

Document forging:This old-school practice impacts invoices, signatures on them, receipts and other paper-based documents. Ask business customers to switch to electronic payments with enhanced security features that eliminate any forging activities.

Credit card fraud: Scammers use stolen data from a business credit card to make fraudulent purchases. Always verify business buyers’ or sellers’ payment information, including billing address, before processing any transaction.

Takeovers of business accounts:Your business account information can be compromised, and deceivers can use it to make fraudulent transactions. To prevent such malicious activities, use two-factor authentication and encourage your counterparts to do the same. 

Use online platforms with built-in protection.

How do I choose a Global Payments Platform?

Selecting the right payment gateway for your business should consider the issues and considerations mentioned above. This online platform must benefit your business by saving time in labour and providing smooth B2B payments. In this case, you need to consider criteria that help you choose the optimal platform for your business. Here are some of them that may significantly influence your decision. 

Payment Processing

The platform can work with multiple currencies and countries. The online tool should also be able to schedule all B2B payments in one place. Multiple payment options will also be a plus. Last but not least, the speed of payment processing is important to have robust connections and the capability to integrate with ERP systems or any other accounting software you use. 

Payment Configuration

The ability to split payments between a payee and a payer, hold them, set payment thresholds, and use various settlement methods distinguishes a better online application from the worse. Multiple options for merchants and guidelines for filling in forms will simplify communication with them.

Allow your customers to select the most cost-effective payment methods that provide security and reliable processing of B2B transactions. 

The ideal solution should be an online portal for customers or suppliers. Then, they can choose any relevant remittance method that is convenient for them, easing their cash flow management.

Banking Rules and Compliance

International trade has 26,000 applicable rules. Data protection should also be part of the security equation. An online payment solution that complies with all those rules and integrates them into machine algorithms will be a winning choice for your business. 

Internal Control

Keep tabs on AP and AR management. Find a solution that allows clear system permissions, delegation, and segregation of duties. The control system can work with role-based permissions, log audits, and configurable workflows. 

Transparency

You may know how much time your AP department spends receiving calls and emails about payment statuses. That is why you need a comprehensive payment status system within the online payment platform. Those conditions inform suppliers about payment, and the history of online transactions helps track the transaction and shows the current payment status. There is no need to explain where your payment is hanging out. The system of alerts and messages provides the necessary information for proceeding with transactions and informs suppliers about the payments’ status.

B2B Payments in Various Industries

B2B payments in a variety of industries work differently. They also depend on the product or service and the company’s size. Here are some of the most distinctive cases of B2B transactions depending on the industry. 

B2B Payments in SaaS business

SaaS businesses mainly work with subscription plans and recurrent payments. A customer pays monthly, quarterly or annual fees. Some companies provide discounts for yearly subscriptions when you spend 12 months in advance. However, some companies don’t offer any discounts, and you pay the same amount each month or the annual amount.

Many SaaS firms offer flexible opportunities for electronic payments. For instance, MOZ and Semrush use checks and wire transfers, while Ahrefs and Mailchimp use digital payment methods depending on subscription plans and location. 

Remember that transactions proceed automatically according to the subscription plan and are made when payment is due. 

B2B paymentsolutions for SaaS aimed tolower costs, proceed with real-time payments, foster international payments, and simplify reporting. 

B2B Payments in the e-commerce industry

E-commerce businesses use payment options (checkout process) and display methods on the web (e-catalogues). B2B companies expect to have B2C experience. 

The number of operations in B2B is more significant than B2C. So, the payment process involves purchase orders, invoicing, and negotiation about payment terms. It is also possible to accept payments by paper check. E-commerce can use virtual or credit cards for smaller amounts and one-off purchases. A specific amount for assignment credit card payments lowers the risk of payment fraud. 

B2B payment applications forE-commerce imply payment discounts, real-time processing, international payments, and factoring of invoices.

B2B Payments in AdTech Business

The Adtech industry has extended payment terms. Companies may have longer payment cycles: 180 days of payment delay compared with collecting funds from purchase orders in other domains. Advertisers still pay publishers in a traditional way. Paper checks and wire transfers remain among the most frequent payment tools.

Some publishers have more than 50% of accounts receivable tied in money. Late payments can cause a series of cash flow issues. Modern payment processing through online platforms can partially resolve those issues and mitigate risks connected with payments during the year. 

AdTech companies can use B2B payment software to improve business relationships and transparency, organise stable payments, and reduce human error.

B2B Payments in the Gig Economy

The serious growth of all online marketplaces raises questions about payment tools and methods to proceed with those payments.

Freelancers use several types of debit or credit cards, wire transfers, and remittances through payment gateways. The possibility of getting paid depends on the platform these freelancers use.

If a company wants to work with self-employed persons long-term and negotiate recurring payments, it seeks a medium for such instalments. Freelancers can store data on the freelance platform for easy payment management.

Ultimately, solopreneurs can use B2B payment applications to lower costs. Freelancers receiveconvenient reports and 24/7 support, and overseas payments can be processed.

B2B Payments in the Retail Industry

Traditional retail businesses working with online tools expect more B2B payment options. However, those companies may have issues, including security risks, transaction costs, processing speed, a lack of settlement methods, and payment data management issues.

In the retail industry, more payment mechanisms are being used. Now, customers want to use mobile payments via digital wallets like PayPal, Google Pay, and Apple Pay. B2B payments can be managed through smartphones and tablets. 

B2B payment solutions for retail businesses can include cryptocurrency payment methods, secure digital payments, third-party financing, and discount and refund policies.

B2B Payments in Affiliate and Influencer Networks

Influencers and affiliates are brand ambassadors who can increase brand awareness and promote your product or service worldwide. However, the amount of payment varies. Businesses usually pay a percentage of purchased goods or services, which may vary from 5 to 30%.

The payment processing methods are very similar to those in the gig economy. Recurring payments can still be used, like with freelancers.

Affiliate and influencer networks can use B2B payment software to support international payments, lower internal costs, and schedule payments properly.

B2B Payments in International Trade

Cross-border transactions still work traditionally. The specifics of overseas trade imply using one bank account in the supplier’s bank and a domestic bank account in your country, as well as ACH transactions and wire transfer payments. Credit and debit card payments are typical for lower-value transactions.

Companies in this sphere should consider currency exchange rates, transaction fees, taxes, shipping costs and international compliance with rules and regulations.

Slowly but surely, new ways are instilled into traditional overseas business practices. The new forms of payment tools mentioned are actively used.

B2B payment applications for international trade should consider thesecurity of payments, costs and flexibility features. 

B2B Payments in Manufacturing

Traditional B2B payment methods, like paper checks and wire transfers, are still relevant for manufacturing companies. However, 15% of them use real-time payment processing more often.

Manufacturers use complex and comprehensive ERP systems, such as SAP, Dynamics 365, Oracle, etc. So, offering more options to pay suppliers implies the integration of new and existing payment methods with in-house accounting and management applications. 

Manufacturing firms are seeking B2B payment solutions that requirereal-time processing, custom integration of payment tools and cost-saving options.

Summing Up

Automation, AI and disruptive technologies have changed the global payments field. B2B, like B2C businesses, tend to use as many payment options as possible. However, cash, paper checks still fit the modern payment pattern, especially for small and midsize businesses. 

Cutting-edge payment platforms simplify payment processing and accounting and automate AP and AR. The number of B2B companies seeking transparency, security, and real-time processing increases yearly. Because of such business needs, wire transfers, ACH payments, eWallets, cryptocurrency, and other payment methods have appeared.

Are you looking for another payment option for your business? Consider Wallester B2B payment solutions. Our innovative turnkey platform simplifies and accelerates the whole cycle of interactions with your suppliers — from invoicing to payment. Instant branded physical and virtual card issuance with an IBAN account streamlines payment processing, e.g., online advertising purchases.