In the early days, the B2B transactions were on paper and consumed much manual time and effort. In the past, checks conducted commerce, but digital payments have changed that. Online payments have become popular in recent years because cloud-based payment systems are automatically linked to banks.
In almost every small and big sector, e-commerce has gained its stronghold. It is due to its ease of use and spectrum of versatility. B2B payments play an essential role in this segment of digital banking. And with the whole COVID-19 situation going worldwide, the need for paperless payments has been necessary for every business, regardless of size.
The followings are the top 11 trends that are pretty popular amongst business organizations as a form of B2B payments:
Decline in cheques
One of the significant impacts of online payment systems in the B2B market is the number of cheques used in the early days. The new methods of cloud-based payments have completely wiped-out cheques. Also, studies show around 90% of businesses today operate with online payments. NetSuite’s procure-to-pay process is also helping people with these payments.
AI and Cryptocurrency
Another essential addition to digital payment between businesses is introducing AI technology and accepting cryptocurrency as payment. It has reduced the need for large sums of cash. Also, it has paved the way for a futuristic mode of currency to engage in trade or B2B services.
Enhanced Cyber security in B2B payments
Security has been a significant concern for organizations for centuries regarding any trade. And with the rise in cyber security measures in digital payments, the issues or misfortunes in payments between business and business have dropped significantly.
Pre-authorized payment systems
Some payment systems ask businesses to pre-authorize their payment preferences for further B2B transactions. A typical example is the saved cards for payments. They ease the experience of online payments and reduce the time required for the whole process.
Smarter way of payment
Cash, DD, or cheque payments are always complicated since the amount in B2B transactions tends to be high. And this pile load of invoices and cheques is avoided by companies when they switch to online payments. Thus, this provides a fast and intelligent way of a B2B payment system.
Collaborative business environment
The efficiency of sales and imports is one of the most important aspects of any business. And with a collaborative business environment in B2B transactions, the data efficiency between vendors, customers, and the small business group is significantly increased.
Automated payments
B2B vendors often use automatic payment systems for online payments. These ensure that no payment is late out of its due date. One of them is the NetSuite AP automation. It clears the path for businesses to handle their core works and sales up and running without the complications in payment systems.
Flexible payment options
Along with the traditional forms of payments in B2B transactions, there are other options such as cards, net banking, and many more. Thus, the business owner has the liberty to fulfill their dues as per their convenient mode of payment. It helps in reducing complexity and brings more transparent payments.
BNPL option availability of virtual cards
Buy-now-Pay-Later, commonly known as BNPL, is a trendy form of payment in the B2B market. The concept is a credit-based payment system that allows businesses to use forms such as virtual cards to buy or import goods and services and pay later for them in due time.
Integration between AP and AR
Accounts Payable (AP) and Accounts Received (AR) are two building blocks of modern-day payments between businesses. And with the seamless integration between AP and AR, companies have the liberty to pay and receive money through different modes.
Easy address of grievances
Another issue that has been improving in B2B payment systems is the addressable grievances. Payment issues used to take too long, but now can be resolved quickly and easily with online or card payments.
Conclusion
B2B payments have been with us since the invention of currencies. But the trends or changes in B2B transactions are phenomenal these days. The Internet is a big part of this change, and today these online payments and transactions are robust and secured. Following these trends also allows the business to attract more vendors for the fast delivery of products or services in exchange for quick online payments.
Mrudul Modh is the chief NetSuite Consultant of VNMT Solutions, A NetSuite Alliance Partner with years in providing NetSuite Development Services, across diverse industry niches.
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