Outside of the B2B space, the payment experience has long been recognized as a crucial component of customer satisfaction. Fast, secure, and flexible payment options are standard expectations — and businesses that fail to offer them to their customers often fail to compete.
In contrast, B2B payments have lagged, with transactions between buyers and suppliers commonly bogged down by inefficiencies, delays and a lack of flexibility and choice. According to PYMNTS Intelligence research published this summer, 3 in 4 organizations (75%) still use paper checks, despite their high costs and inefficiencies.
But with the news that IKEA U.S. last week (Aug. 29) began rolling out an invoice-to-pay solution provided by payments company Slope, saying it will provide flexible payment options for the furniture retailer’s business customers, hope for a better way to pay and be paid is glimmering along the B2B horizon.
After all, as businesses increasingly operate in a global and digital environment, B2B buyers are beginning to demand the same level of convenience and service they experience as consumers.
This shift is also elevating the role of payments in B2B brand building. Ultimately, as digital transformation sweeps across industries, B2B payments are no longer merely about settling invoices; instead, they are increasingly about creating seamless, transparent and efficient experiences that reflect the brand’s values and commitment to its partners.
Read more: Digital B2B Payments Turn User Experience Into a Superpower
Reliability and trust are key drivers behind B2B buying decisions, and a better payments experience is fundamental to supporting both of those brand pillars — particularly against a backdrop where brand building is no longer solely the domain of marketing departments.
For B2B enterprises, where relationships and trust are paramount, the payment experience can serve as a powerful brand differentiator, influencing perceptions, loyalty and ultimately, the bottom line. Unlike B2C, where transactions are often one-off, B2B transactions are typically part of a longer-term relationship. A well-handled payment process can reinforce trust between partners, while issues such as delays, lack of transparency or errors can erode it.
And as businesses continue to digitize, the ability to offer seamless, integrated payment solutions can set a brand apart from its competitors. For instance, integrating payment processes with existing enterprise resource planning (ERP) systems can streamline operations for clients, reducing the administrative burden and creating a more seamless, efficient experience.
An August PYMNTS Intelligence report, “Building Better B2B Relationships Through Payments Innovation,” found that innovations like automation, virtual cards and digital payments are becoming cornerstones of B2B payments, with businesses increasingly recognizing their role in strengthening buyer-supplier relationships.
“The companies that aren’t embracing virtual cards or B2B payments innovations will be the ones that fall behind,” ConnexPay founder and CEO Bob Kaufman told PYMNTS in March. “The suppliers that are not as flexible and willing to embrace these new forms of payments are going to lose business, while the buyers who are not using them are losing revenue, which results in them not being as competitive in their space.”
Read more: Nine Things Payments Execs Need to Know for Their 2025 Business Plans
In the June 2024 report “Getting Paid: Digital Payments for Improving Cash Flow and Customer Experience,” PYMNTS Intelligence revealed that 79% of firms want to receive digital payments, including wire, automated clearing house (ACH) and virtual cards, and 83% consider fully electronic payment processing to be important or very important.
“We see from both buyers and suppliers across many different industries that the need to focus on working capital has been apparent,” Chad Wallace, executive vice president and global head of commercial solutions at Mastercard, told PYMNTS in January. “… [By using virtual cards] buyers are able to pay suppliers in a real-time fashion, so suppliers aren’t receiving late payments. And the buyers are also taking advantage of the credit line to manage their own working capital better. So, we see the benefits on both sides of the house.”
And one of the often-overlooked aspects of digital B2B payments is the wealth of data they generate. This data can be a powerful tool in brand building, offering insights into customer behavior, preferences and pain points. By analyzing payment data, businesses can identify trends and tailor their offerings to better meet customer needs, further strengthening their brand.
For example, understanding which payment methods are most popular among different customer segments can inform product development, marketing strategies, and even customer service approaches. Additionally, payment data can help businesses identify at-risk accounts — those who are consistently late in paying, for instance — and proactively address potential issues before they escalate.
Looking ahead, B2B payments are no longer just a back-office function in B2B transactions — and may never be such again. Rather, they are a critical touchpoint that can significantly influence a company’s brand. By prioritizing trust, transparency, security and customer experience in their payment processes, B2B businesses can build stronger relationships, enhance their brand reputation and ultimately drive growth.
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