Modern businesses are on the precipice of the future for virtual B2B payment spaces. Courtesy of the digital revolution, automation is remoulding the entire payments infrastructure.
The Covid-19 pandemic instilled an urgency in digital payments never seen before in the B2B landscape. Since then, businesses have discovered a gaping hole in the inefficient financial systems that still rely on manual, paper-based processes.
With employees working remotely, paper invoices continued to accumulate in office inboxes. Buyers and suppliers soon realised that they couldn’t reconcile nor access payments without a proper digital solution.
Now, disruptive payment technology has allowed people to network all across the globe, and businesses are more willing to make the transformation. On cue, we’re here to walk you through the many benefits of shifting to digital B2B payment.
What is B2B Payment?
Business-to-business payments are transactions made between two companies. Unlike other forms of payment, such as business-to-customer (B2C), B2B payments are a more complex process.
Thankfully, digital B2B payment options offer more effective financial services, expediting the process of issuing invoices, receiving, and processing payments. They also help businesses to improve cash flow and streamline collections.
The Problem with Paper Checks
Paper-based payments are more costly and time-consuming than one might imagine. Aside from a single check being expensive to process, it would also take a long time to clear.
Moreover, paper check payments entail numerous challenges, including:
- Slowing down the payment cycle and causing delays.
- Increasing susceptibility to fraud for businesses.
- Reconciliation is time-intensive and highly fallible.
- Allowing customers to close the account or set stop payments.
- Making it difficult to track incoming checks.
On the other hand, B2B payment solutions are less costly, safer, and easier to collect as the funds transfer directly into business accounts.
Benefits of Digital B2B Payments
1. Convenience & Accessibility
Modern, automated B2B payment solutions allow clients to pay invoices anywhere at any time with just a single click. With the manual processes out of the way, businesses can save costs and time previously devoted to invoice processing.
2. Secure Transactions
Digital B2B payments are significantly more safe as most platforms are built on a robust security infrastructure and data encrypted. Besides, most platforms are now regulated. In addition, these solutions make it easier to address potential vulnerabilities in supplier management, payment files, and treasury systems.
3. Higher Traceability
Payment details will be safely stored in merchant-specific databases, allowing parties easy access to payment information that they need. Consequently, suppliers and clients can prevent ambiguity or confusion by simply tracking their payments.
4. Faster & Simplified Payment
Studies have shown that the more payment options are available, the faster companies receive payment and leave room for expansion. Now that digital solutions have simplified the payment process, businesses utilising them can expect cash flow optimisation and, subsequently, growth.
5. Productivity & Efficiency Boost
Staff can be more efficient and less error-prone when focusing on primary tasks without worrying about manual payments. Not to mention, integrated B2B payment solutions can provide transaction reports to ease reconciliation.
EzyPayment as Your B2B Solution
EzyPayment solution is dedicated to helping businesses improve cash flow and productivity. Our navigable and easy-to-use platform allows buyers to lodge credit cards and pay invoices to suppliers. Alternatively, it also enables suppliers to pull payment from buyers’ credit cards when their invoice is due.
The platform’s payment process supports bulk payment uploads, multi-tier approvals and features automated email notifications. Perhaps the best part is that users may possibly reap savings from early payment discounts from suppliers and enjoy cashback, miles, or points benefits if provided from their bank!
Find out more about EzyProcure’s B2B payment solutions in Malaysia.
