How the B2B Payments Process Can Benefit from Going Digital

Traditional B2B payments rely on manual systems

  1. Instant credit granted to the customer after they undergo a financial evaluation.
  2. Trade credit that is equal to goods or services.
  3. Cash on delivery, where the customer pays cash for goods or services to seller upon delivery.
  4. Checks printed on paper and mailed to merchant.
  5. Wire transfer, where money is transferred from one bank account to another, usually through a third-party facilitator.
  6. ACH transfer from one bank account to another.
  7. Purchase order placed by buyer, followed by invoice delivery, and payment collection.
  8. Credit card payment made using a personal or company credit card.
  • Buyer obtains a credit line after a financial review.
  • Buyer and seller agree to an amount equal to goods or services in trade.
  • Cash is paid to the seller when the goods or services are delivered.
  • Paper checks are customary, and need to be printed, packaged, and sent by mail.
  • Money is transferred through a third-party facilitator from buyer to seller account.
  • Money is transferred directly from one bank account to another.
  • Buyer places an order, they receive an invoice, and payment is collected.
  • Payment is made with a personal or company credit card.

Digital payments are about efficiency, not speed

More payment transparency

24/7 availability

Richer payment information

More payment methods available

  1. Mobile wallets and virtual credit cards. More banks and financial services companies are beginning to provide digital B2B payment solutions, and adding API-enabled interfaces to generate faster, more secure B2B transactions. One-time-use virtual credit cards are now more widely used to pay for goods and services. PayPal and Bank of America offer mobile wallet payments to B2B companies, a wildly convenient alternative to purchase orders, invoices, and paper checks.
  2. Third-party financing. Third-party financing is when a business uses a third party (not themselves or their vendor) to finance a purchase. Digital payments could disrupt the process by revolutionizing the way businesses and consumers interact with banks and offer financing without the use of a financial institution.

More affordable payment costs

Last minute payments as an option

How B2B companies can successfully transition to digital

What should B2B companies look at before going digital

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.

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