Payment technology is changing before our eyes, and businesses are following suit. Businesses across the United States are closing their brick-and-mortar doors for good to make way for digital stores and online shopping. Automation and artificial intelligence are quickly being adopted by companies all over the country as well. Business-to-business (B2B) payment methods, however, have struggled to keep pace with the rest of the trends.
B2B transactions are deals between two companies – manufacturers, distributors, wholesalers, retailers, etc. – on a recurring or one-time basis. These purchases are often in bulk and can be more complicated and expensive than your average C2B (customer-to-business) transaction. Purchase volume, transaction history, and the buyer-seller relationship all factor into a deal’s efficiency.
Paper-based payments still have their place in business and still play a vital role in daily dealings. They are, however, on the fast track out. B2B buyers and suppliers alike are looking to simplify their transaction process and deliver punctual payments as they transition into the digital age of business.
Since the COVID-19 pandemic, 68% of small businesses have made moves heading towards an all-digital system, leaving cash and checks in the past. By 2025, it is reported that 80% of B2B transactions could be digital. 45% of transactions are done manually today, but that number is steadily declining.
For more information on B2B payment methods and emerging trends, please see the accompanying resource created by CardConnect.
Visit CardConnect’s website for more on merchant payments