Payment technology is changing before our eyes, and naturally businesses are following suit. Stores across the United States are leaving their brick-and-mortar properties behind in favor of online shopping. In addition to this, automation and artificial intelligence are being adopted by all different kinds of companies. Business-to-business (B2B) payment methods, however, have not kept the same pace in evolving.
B2B payments are dealings between two companies on a recurring or one-time basis, including manufacturers, distributors, wholesalers, and retailers. These purchases are often in bulk and are known to be costly – and more complicated – than your usual C2B (customer-to-business) transactions. Purchase volume, transaction history, and the relationship between the buyer and seller are factors that determine the complication of the process.
Paper-based payments, however, is still a huge factor in how we do business. This doesn’t mean that digital payments haven’t been hot on paper’s trail, though. B2B buyers and suppliers are introducing modern methods to their operations that simplify the transaction process while also delivering timely payments.
Since the COVID-19 pandemic, the digital push has caused 68% of small businesses to decrease their paper check and cash usage. By 2025, it is predicted that 80% of B2B transactions will be digital. 45% of transactions are still done manually, but that number will continue to go down as the years go on.
For more information on B2B payment methods and emerging trends, please see the accompanying guide provided by CardConnect.
Visit CardConnect’s website for more on merchant payments