Revolutionizing B2B Payments: How Companies are Driving Growth through Digitization
The emerging trend of companies adopting blockchain technology for B2B (business-to-business) payments. As traditional payment systems face challenges such as slow transactions, high costs, and security concerns, businesses are turning to blockchain-based solutions to streamline their payment processes. By leveraging the decentralized nature of blockchain, companies can benefit from faster transactions, reduced fees, increased transparency, and enhanced security. Blockchain-based B2B payment systems offer advantages such as improved efficiency, reduced reliance on intermediaries, and seamless cross-border transactions. By embracing blockchain for B2B payments, companies can stay at the forefront of innovation while reaping the benefits of a more efficient and secure payment ecosystem.
Since the 1980s merchants have gradually moved towards digital payment. In recent years, this trend has gained traction. Only 25% of B2B transactions are paid by check. To support their modernization efforts, many companies have invested or plan to invest in new accounts payable and receivables systems.
PYMNTS discovered that retailers are also looking to enhance their digital payment options. PYMNTS found that 55% of grocery stores and 56% of convenience stores accept real-time payments. Many companies are also exploring new business innovations, such as loyalty programs or refund procedures.
" Tracker of Digital Payments (r) examines the benefits modern payment methods bring, and how they're being adopted.
The B2B and Digital Payments Space
Nacha has released a statement informing the public that the United States Automated Clearinghouse (ACH) Network processed 30 trillion transactions in 2022. In 2022, the volume of payments was 3% more than in 2021. This is largely because of the increase in business payments, which have increased by 44% compared with the previous year.
Companies may be searching for alternative payment options because they are frustrated with their current payment methods.
Tracker News and trends has more information about these stories.
An insider's view of why B2B business will never return to the old ways of doing things once they go digital
The payment digitization trend is an example of the first group.
We talked to Luke Trayfoot, chief revenue officer of Mangopay about why B2B payment is becoming more digitalized. This trend will continue.
Benefits to merchants who modernize payment systems
As a result of the pandemic, businesses had to adapt quickly to online payment channels and contact less payments. These solutions offer merchants benefits.
Payment digitization can, for instance, address the challenges associated with legacy B2B transactions. Manual review and long procedures are among the top concerns. 92% of financial institutes plan or innovate digital solutions to reduce B2B friction.
For example, payment digitization can potentially address the challenges associated with legacy B2B transactions. A PYMNTS survey found that small business payers encounter an average of five pain points when making B2B payments, with manual reviews and time-consuming procedures among the top concerns. Firms can alleviate these issues with modern payment systems, which helps explain why 92% of FIs are innovating or planning to innovate digital solutions to reduce B2B payment frictions.Tracker
American Express and Tracker(r) have collaborated to create this B2B digital payment system. The report examines digital payment methods, and the benefits of modernizing payment.