The Benefits of Digital Payments for B2B
Dec 12, 2023 by Kelsey Banerjee
The shift towards digital payments has led to fast and efficient business growth opportunities. However, most business accounting and finance departments still need to catch up in adopting this payment method. By eliminating paper checks, the AR process becomes more effective, leading to faster payment cycles and efficient collections. Today, a B2B transaction is no longer a back-office-only process. Businesses view the payment experience as another customer touchpoint. One study found that the checkout process influences whether a customer will make another purchase from the vendor in the future. Still, technological shifts have proved that digital payments bring fast and efficient growth opportunities for businesses. Consumer payments have seen a digital revolution so drastic that people hardly set foot in a bank anymore. Most money transfers happen via apps and online platforms. Contactless payment is the present, not the future of digital payments. However, business accounting and finance departments still need to catch up when adopting this payment method. According to PYMNTS, 40% of B2B payments are still done manually, using paper-based methods. Due to the pandemic, we've seen many challenges confronting the digital B2B payment space. The sudden shift to digital solutions and remote processes exposed the costly infrastructure gaps and inefficiencies of a financial system worth hundreds of trillions of dollars. Yet, businesses depend mainly on in-person processes, slow-moving checks, and expensive paper invoices. If, like many CFOs and AR managers, you're looking into digital payment platforms and electronic remittance solutions, you can read on as we walk through the benefits of shifting to digital payment solutions.
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