Introduction
The convenience and speed of #B2C payments are now in demand in #B2B payments as well. More use cases of #B2B payments moving away from paper checks and toward digital payment solutions are emerging. Payment reconciliation is critical for businesses because precisely matching data to payments increases transparency speeds up settlements, and eliminates unnecessary expenditures.
The complexities in B2B payments
#B2Bpayments follow a more complex process, and several factors impact them. Some of these include:
Longer approval time – In a business, multiple stakeholders must examine a payment decision before final approval. It typically includes five to seven personnel, resulting in lengthy approval processes and delays. These payment cycle delays have an influence on timely payments, impacting over a third of mid-sized businesses.
Larger Volumes - #B2B purchases and transactions are made in larger quantities and are frequently worth thousands of dollars or euros. Companies also prefer to make repeated purchases and establish long-term buyer-seller partnerships.
Payments by Industry - #B2B payments might also differ depending on the industry. Payment terms and standards vary by industry, adding to the complexity of B2B payments.
How to solve Pain Points in B2B Payments
B2B payments face several issues, such as manual processing, delayed payments, reconciling data and payments, visibility, and fraud.
Move from manual processing to automation
Accounts receivable (AR) and accounts payable (AP) automation saves manual and repetitive work. You have real-time access to reliable data, which allows you to simply reconcile your payments. You increase cash flow management, revenue tracking, and reporting. To get the best out of automated billing, you should merge it with other business processes within your organization.
For example, integrating payment #APIs into your #ERP system can help you manage payments more seamlessly by securely sharing payment data across multiple departments.
Risk Management and Data Security
According to PYMTS/Visa research, 60% of businesses are concerned about data breaches and payment fraud. As a result, you should use Strong Customer Authentication(#SCA) to authenticate #B2B payments. Secure the payment credentials of various payors and suppliers to prevent unauthorized access. To protect critical payment data from hackers and fraudsters, use additional layers of protection such as two-factor (#2FA) and multifactor authentication (#MFA). Using artificial intelligence for fraud management allows you to monitor massive amounts of complex payment data in real-time.
Reduce payment delays
Payment delays impact your cash flow, business relationships, and reputation. Payments made on time are a boon to organizations since they improve cash flow and help you maintain business continuity. They contribute to the development of stronger relationships between customers and sellers. Digitizing your #payments helps you to raise and settle invoices on time, automate payment schedules, and track late payments.
Conclusion
Businesses can handle their payment concerns by integrating any of the third-party APIs or by employing payment plugins. Ensuring a safe online payment to your customers not only reduces payment delays but also improves trust in your company.
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