B2B buyers that have taken to online commerce now have higher expectations for their customer service and the terms they receive from their vendors.
The Global B2B Payments Playbook, a PYMNTS and Worldpay collaboration, found that 85% of B2B buyers value a positive experience with their partners as much as their products and services.
Get the report: Global B2B Payments Playbook
The survey also found that 69% of B2B buyers want their partners to provide novel ways for them to access products and services.
Meeting Customers’ Expectations
In recent news on that front, FinTech FIS announced April 6 that its Worldpay business will be the first global merchant acquirer to give merchants the ability to receive settlements in USD Coin (USDC).
Read more: FIS, Circle Team up to Offer USDC Acceptance
It may seem difficult for firms to meet the higher expectations of their customers, but one way exists for them to boost customer experience without losing clients to competitors: partnerships.
For example, an eCommerce platform that serves small- to medium-sized business (SMB) retailers could partner with a delivery tracking service to offer clients end-to-end order transparency. It is important for businesses to cultivate relationships based on ongoing communication and periodically reevaluate whether such arrangements are proving to be worthwhile.
Another opportunity for improvement involves the prevention of errors. Errors in payment details represent one of the biggest friction points in the cross-border B2B payments space, but third parties are stepping in with solutions to solve these problems.
For example, global messaging service SWIFT offers a service that allows banks to verify beneficiaries’ financial details before payments are made. The solution ultimately allows senders to leverage an application programming interface (API) that can prevent mistakes that would require time and resources to fix.
Incorporating Electronic Payment Methods and Rich Data
To enable better customer experiences, B2B firms are examining their use of digital payments and the rich data that accompanies such payments.
Many businesses have historically been weighed down by paper-intensive and outdated payment processes, yet one-touch digital payments and similarly swift solutions have become table stakes for consumers. The speed and convenience of consumer payments are entering the business arena, however.
Incorporating electronic payment methods is a positive first step, but B2B businesses must do more to truly capitalize on the potential that digitization offers. Digital payments can come with a host of rich data, and tapping into this information can help firms further streamline their operations, control their cash flows and unlock insights into their back-office processes.
Firms can even tap into solutions powered by APIs and data integrations, giving them added transparency into their finances and priming them for success as payment processes around the world continue to go digital.
Numerous FinTechs have entered the space with integrated payments solutions that can help B2B firms make the most of their transaction data in response to businesses’ new needs and expectations.
Shaping the Future of B2B Payments
The Banking-as-a-Service (BaaS) model could shape the future of B2B payments. Consumers have enjoyed the benefits of the BaaS model for years, which allows them to access financial services from nonbank entities using APIs.
As firms in the B2B financial services sector seek out swift digital payments and services at the point of need, the consumer banking world’s adoption of BaaS solutions is making waves in the B2B space.
Businesses can now offer some semblance of banking services and payments not just to their end customers but also to their value chains, including vendors, intermediaries and suppliers.
BaaS is expected to become the major business model for the banking sector within five years because consumers and businesses alike want instant financial services digitally or through open interfaces. Businesses will need to catch up on the B2B side as digital payments continue to rise in popularity.