In recent years, B2B payments have taken on greater importance as more companies leverage the acceptance of credit cards in their AR process to reduce the costs of accepting payments and increase their cash flow quicker. The ability of large companies and startups alike to handle the coming trends in the merchant field and beyond will be crucial for all involved, from consumers who look to make B2B payments to B2B companies themselves. With all this in mind, it’s vital for merchants considering B2B options to study up on the latest trends, on an ongoing basis, and consider partnering with companies like EVO B2B to put their best foot forward.
One of the big issues banks in particular are facing right now when it comes to dealing with the proliferation of B2B payment processing is that it’s still quite expensive to handle those transactions, largely because financial institutions rely on so-called legacy systems to handle those purchases, according to a report from PYMNTS. As such, it might be necessary for banks to start investing in streamlining and updating those processes as a means of reining in those costs and making themselves more competitive once again.
“Banks will be forced to bring those costs down,” Mike Laven, CEO of Currencycloud, told the site. “Banks can decide – as they have in other markets, such as equities and trading – that they are under pressure from new entrants and need to bring their costs down precipitously.”
Indeed, experts now generally believe that B2B transactions will become more common not only in the U.S. but around the world, simply because they may make it easier to conduct international business in certain situations, according to a separate PYMNTS report. This trend will likely be especially noticeable as the availability of B2B technology spreads around the globe. Further, the amount of information banks and businesses alike have about each transaction will only continue to grow and become available more quickly as time goes on.
Moreover, the need for everyone to be able to handle a growing number of B2B transactions will increase as more investment money flows into the sector, PYMNTS noted. Potentially tens of millions of dollars in venture capital may now be available to companies with innovative takes on payment processing. Data from the first quarter of 2016 suggests there was a 67 surge of venture capital funding for financial technology from the same three-month period in 2015.
There are many avenues which developers can travel to meet changing B2B needs, including innovative mobile and online payments, as well as boosting cybersecurity.
With all this in mind, it’s vital for merchants now looking at B2B options to aid in their payment processing to carefully assess all their options on an ongoing basis. When considering as much information about what each B2B option provides, merchants can make the best possible decisions that will help them grow their businesses while keeping their bottom lines trim.