Through the COVID-19 pandemic, the electronic payments ecosystem has continued to help businesses continue running. It has proven to be one of the most technologically influential sectors in all of business.
Even with B2B payments‘ recent advances, innovation continues to thrive, providing better, faster, and more effective ways of ensuring payments occur with minimal friction. This year, all signs point to B2B payments getting even faster, leading to a new norm in the way payments are handled. Here, we discuss five B2B payments trends to watch in 2021.
1. Real-time Payments
Real-time payments (RTP) is an undertaking that has been making instantaneous payments between entities more common by providing convenience, security, and speed. RTP is adored by businesses and customers worldwide because it ensures immediate transactions and provides an answer to the CFPB’s (Consumer Financial Protection Bureau) requirements.
It also offers real-time notifications in every transaction, providing certainty and transparency for both parties. Real-time payments also play a huge role in businesses, offering services such as bill pay, e-invoicing, insurance services, claim settlement and expenses, and more.
2. Payments Influenced by the Cloud
In business, one of the most challenging obstacles to overcome is late payments. When you or your organization can’t facilitate a payment solution, that reality can negatively impact your business.
Thankfully, Cloud-based technology has adapted the use of remote servers hosted through the Internet. In these servers, data is stored, managed, and processed rather than using a local server.
With cloud computing, anyone can leverage benefits such as faster cash flow, flexibility, high security, and automation. As a result, your business can get process payments over the Internet rather than older technology, such as hard drives and specific devices. The Cloud can seriously pave the way for ending late payments, enabling instantaneous transactions and enhancing the client-customer relationship.
3. FinTech Companies Are Becoming More Prominent
The banking system thrives on brand recognition, customer databases, and knowledge regarding the financial industry. However, traditional banks are inherently slow regarding any demand for speedy transactions, customization, and personalization. This reality leads to the most significant challenge that banks face: implementing high-end technology in an industry with a weak innovation culture.
A solution to this challenge is to collaborate with FinTech organizations to bridge the gap between the holes in traditional banks’ technology. Expect banks to look for ways to engage with FinTech companies with the hopes of cutting costs without much loss.
4. Mobile Payments
Due to the pandemic, cashless payments have skyrocketed, eliminating the middleman. Many businesses have used mobile apps to provide their customers a way to pay directly without jumping through hoops.
The implementation of mobile apps for payments is a highly efficient way for businesses such as cafes, restaurants, gas stations, services stations, and others to build customer loyalty. Companies can partner with leading Fin-Tech firms and contract them to create a mobile payments app for their organization. If done well, the app facilitates opportunities for the company’s customers to stay connected and invested in their services.
5. Turbo-charging Transformation Timelines
There are plenty of reasons why companies are desperately seeking to speed operational digitization. The most obvious is that customers are now reliant on digital transactions. This has led to higher expectations around digital standards when engaging with those companies.
As a result, organizations face more pressure to quickly provide digital solutions for their services to keep pace with their customers’ ever-increasing demands while simultaneously contemplating new channels for revenue.
Online Payments Are Here To Stay
Businesses don’t stand a chance of competing in today’s market if they don’t keep up with the ever-increasing demand for a secure, fast, and reliable payment system.
Many companies are struggling to take advantage of new technology around payments. When that’s the case, it’s best for those organizations to partner with a Fin-Tech development team that can leverage their knowledge to build a more efficient and up-to-date payment system. This helps them remain competitive in the market and allows them to move forward during events like a pandemic.
Ernie Martin is Founder and Managing Director of Receivable Savvy. He brings over 25 years of experience in financial supply chain management, marketing and communications and draws upon his extensive experience to share knowledge and best practices with AR professionals. He previously chaired the Vendor Forum of the Federal Reserve Bank of Minneapolis and his resume includes time at several well-known brands and companies such as Tungsten Network, Delta Airlines, CIGNA Healthcare and Georgia Pacific, as well as a number of years as an independent consultant.