The Benefits of a B2B Worldwide Payments Platform

B2B Worldwide Payments Platform: Why You Should Start Using One

A few years ago, it was common to pay for goods and services with cash.

Today, with digital advancement, there are various digital money options you can opt for. You can make payments at your convenience from any part of the world. Options include wire transfer, EFT (electronic fund transfer), cheques, etc.

For businesses offering goods and services to other businesses such as wholesalers, manufacturers, and corporations, B2B (Business-to-Business) payment platforms have made it easier to collect payments from their customers.

With cross-border B2B transaction values estimated to grow by 30% from 2020–2022, B2B payments will offer more opportunities, convenience, and improved transactions.

This article explains what B2B payments are, how businesses collect them, their benefits, and why Simplypay is the right B2B payment solution for you.

What are B2B Payments?

B2B payments refer to inter-commerce transactions that involve an exchange of currency between two businesses as payment for goods or services provided.

Depending on the contract, B2B payments can happen once or several times.

There are several types of B2B payment methods, including cash, credit cards, wire transfers, paper checks, and Automated Clearing House (ACH) payments.

B2B Vs. B2C

B2B is a lot more complex than B2C (Business-to-Consumer). While B2B payments happen between businesses, B2C payments are between companies and consumers.

Other differences include:

• The processing time for B2B payments is normally longer. It can take several days before they’re finalized. On the other hand, B2C payments transactions happen right there and then.
• Goods or services involved in B2B transactions are usually of higher quantities. The global B2B payments industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.6% over the next seven years.
• B2B payments are more strict than B2C. The payment method and when payments should be made are well stated in the contract.

Different Ways Businesses Collect B2B Payments

Cash

Hard cash is still one common way most small businesses use to collect B2B payments. However, this method is pretty inefficient since banks will still charge you even though you’ve paid for your business account.

Checks

Checks remain a popular way of collecting B2B payments even though most people think it’s outdated. Businesses (buyers) can issue either electronic or paper checks to their suppliers.

Credit Cards

Even though they’re not so popular in the B2B payments world because of the processing fees, this payment method is still widely accepted. With it, the seller doesn’t have to wait for too long before receiving their payments.

ACH Payments

ACH payment is one of the most convenient ways of collecting B2B payments. It’s secure, has low failure rates, and businesses can easily keep track of their payments.

Wire Transfers

Businesses usually transfer money between banks via different financial networks such as SWIFT using wire transfer.

Benefits of B2B Payment Platforms

Convenience

Businesses can transact and pay for goods and services from anywhere at any time. Most platforms allow you to create invoices, send them, and collect payments at your convenience.

Secure Transactions

Security of the payments, your data, as well as your client’s transaction data is crucial. To ensure you and your client are protected, B2B payment platforms employ security features such as encryption, tokenization, and SSL certificates.

Increased Sales Opportunities

B2B payments enable you to reach out to many clients, leading to increased sales opportunities. In turn, your business gets higher revenues.

Faster Payment Processing

You only need to invoice, and your customer can make the payments. They have various payment options to choose from; hence, payments are processed faster, increasing cash flow and expanding your business.

Easily Trace Your Transactions

Both you and your customer can access the transaction database if you want to. Tracing transactions enables you to confirm whether the payment was successful. In case of any issues, you can use the feature to know if the payment arrived or not.

Increased Cash Flow

If you automate more of your business’s B2B payments, you can easily receive payments without the need for manual approval. Consequently, there’ll be increased cash flow as payments can come in at any time.

Transparency

Transparency is what builds financial trust between businesses. Accounts payables list what they owe you, and after they pay, you can both access the payment information data at any time.

Contactless Transactions

B2B payments eliminate the need for human interactions.

Why Simplypay is the Right B2B Payment Solution For You

If you’re looking for the best B2B payments solution, look no further than Simplypay. We will help you process your payments efficiently without exorbitant bank fees, annoying delays, or the high costs of wire transfer.

• We’ll provide an easy-to-use platform for small businesses and solo entrepreneurs.
• Our prices are affordable, transparent, and functional.
• Additionally, you get to enjoy low transaction costs, secure payments, and pay with your business credit card whether or not your recipient accepts them.

Ready to start collecting payments without a hassle? Get started with Simplypay. Do you have family or friends running businesses? Don’t let this pass them. Share this article.