From October 2-4, 2024, I attended a conference sponsored by TreviPay, a global financial technology company specializing in the complete digitization of B2B payments.
The conference, dubbed “Crossroads,” focused on how companies can scale their B2B programs by leveraging strategic partnerships, driving global expansion, and preparing for the future of risk management and e-invoicing.
This was a great opportunity to learn how organizations streamline their B2B operations, what technologies are available to enhance these processes, and some roadblocks along the way. I also heard about these technologies and their experiences from real-world users.
The rise of B2B payments
For years, consumer payment platforms such as Paypal, Stripe, and Apple Pay have received considerable attention and achieved significant technological advancements.
However, B2B (or business-to-business) payment systems, such as payment gateways and payment processing software, are now in the spotlight and are undergoing a digital transformation driven by modern technology, digitalization, and a demand for smoother customer experience.
Why B2B payments are expanding now
There’s a lot of room for opportunity growth with B2B payments, which primarily lie in digital transformations.
It’s not news that technology has improved and redefined operational processes across all industries, but in regards to B2B payment systems, the COVID-19 pandemic fast-tracked this evolution. It quickly became realized that businesses' old payment processes were unsustainable and too manual, forcing them to embrace better digital solutions. As this transformation continues, organizations see benefits from these platforms, such as efficiency, ease of use, and transparency.
Furthermore, B2B payment technology is setting the bar high by trying to duplicate what the B2C industry has already achieved with user-friendly, easy, and digitally enhanced transactions. B2B payments are more complex than B2C payments because they involve multiple steps, along with more regulations and stakeholders. Businesses that can seamlessly connect these complexities can create an advantage over their competitors in the marketplace.
Building a strategy for B2B payments transformation
During the event, it was emphasized that just having the right B2B payment software isn’t enough anymore. Companies must have the right tools and partners to effectively scale their digital payment solutions. This could include consulting with industry experts, having the proper order-to-cash platforms, and working closely with banks to ensure financial security, integration capabilities, and regulatory compliance.
Fortunately, organizations have a wide range of solutions even as customer expectations change. However, to stay on top of these needs, payment software developers must ensure they are ready for a shift by being proactive, responsive, and adaptable.
An IBM study shows that customers' needs changed from pre- to post-COVID; they desired to be more digital. Where AI and cloud computing were once ranked 5th and 6th, respectively, regarding their importance, they are now 2nd and 3rd, only behind mobility.
Source: IBM
This example shows how the COVID-19 pandemic expedited digital transformation features to better suit customers' expectations as more people worked from home and other remote locations.
G2 data shows mobility features need improvement
G2 reviewers have the option of scoring category-specific features on a 1-7 scale, with 7 being the highest satisfaction score. One of our payment processing category’s 16 feature questions focuses on mobile payments and, more specifically, the ability to process mobile payments from a mobile wallet or other mobile device.
The data above reiterates that the ability to make and receive payments on the go is the #1 most important feature for customers. However, insights from G2’s mobile payment feature scores suggest that this feature still has room for improvement.
Since 2020 (the beginning of the COVID-19 pandemic), mobility payment scores have steadily decreased through 2024, with satisfaction ratings dropping over 8.5%. During the same timeframe, the number of respondents exponentially increased year over year, with a five-year increase of 679%. As the sample size increased, the satisfaction scores decreased, providing a clear and accurate sentiment of users' perception of mobile payment features.
However, feedback from real, authenticated users might also shine some light on the issues they face and what can be improved. For example:
Digital innovation is necessary to succeed
The momentum behind B2B payments presents an ideal opportunity for businesses willing to adapt and grow. As the industry and customer needs continue shifting, organizations prioritizing digital innovation will be better positioned to succeed.
In a time of drastically changing customer expectations, payment products that offer an effective solution and a good user experience will gain a competitive advantage.
Learn how Ford uses payment processing software to strengthen its e-commerce strategy!
Edited by Jigmee Bhutia
Process multiple types of B2B payments
