Did you know that almost 50% of businesses say slow payments are a major business challenge? If B2B payments are so common, why are they so complicated?
For the most part, it can be summed up in the following four words, time-consuming manual processes. And it is that very reason why embedded B2B payments are gaining so much traction lately. Embedded B2B payments are stepping into the light. In this article, we look at the current process and how embedded payments can help. More importantly, we discuss the benefits they bring and how to get started.
This new business model is gaining attention these days. The popularity of business payments is skyrocketing. In fact, expect the global B2B E-commerce market to create revenue of almost USD 19 trillion by the end of 2026. So if we are talking about trillions of dollars, we have to consider what it takes to process them.
Traditional, non-automated payment systems of the past present a huge cost to the organization. Consider the actual cost to process an invoice. In looking at the current B2B payment processing practices, they are known to be labour intensive and manual. In fact, Pymnts reported 49.2% of firms found manual processes and lack of speed to be the biggest pain points.
Additionally, businesses say that it takes 67% more time to follow up on overdue payments without automation. It delivers less actionable data, a longer payment cycle, and offers poor transaction visibility.
Life before automation and embedded B2B payments are costing businesses a fortune.
Major Friction Pain Points:
These pain points put significant pressure on a department’s resources while tying up cash flow in the process.
Take away the biggest pain points, and businesses can start to focus on growth and forward-thinking instead. Chief financial officers (CFOs), CEOs, and payment professionals are starting to take note. The search is on for solutions that streamline B2B payments. It is about automating burdensome processes and needing newer, faster, better payment methods. Did you know Canadian businesses have been reporting to spend as much as $5.2 billion on payments processing?
AR and AP automation with embedded payments is the key to ensuring better B2B payment processing. Faster B2B payments mean a more competitive edge. As B2B payments pick up steam automating payment flows, collections and disbursements are vital.
Embedded B2B Payments Benefits include:
☑️ Significantly reduced payment processing costs – more money on the bottom line
☑️ Improved purchase efficiency – save time for businesses and customers
☑️ Faster flow of payments and data – real-time in some cases
☑️ A safer, more secure transaction – less payment fraud risk
☑️ Better cash management – take control over when you get paid
☑️ Competitive advantage – a seamless payment option is an opportunity to increase customers and sales
Unlock the next market leaders in the global digital economy with innovative digital payments technology offering comprehensive B2B payment solutions for acceptance and disbursement of direct bank payments. If you're looking for a provider, then look no further. VoPay empowers businesses to maximize efficiency, embrace faster payments and reduce operational costs.
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