According to a Forbes article, it is now the need of the hour to streamline B2B payments for the next generation of B2B buyers and procurement professionals. Gen Z expects their business payments to be in sync with their consumer payments experiences due to their digital payment experiences. However, several B2B payment technologies must catch up to consumer payments. The three key areas that will impact B2B payments in the future: are the elimination of paper checks, digital B2B payment networks, and acceptance of credit & virtual cards.
Paper Checks Will Keep Declining
Even while paper checks still account for a sizable portion of B2B transactions, we proclaim their death in the consumer sector. In 2022, paper checks made up 33 percent of B2B payments while declining by 9 percent from 2019. Cheque usage will continue to drop among consumers, but as more finance teams transition to digital payment options, cheque usage will also continue to decline among B2B payments.
The Prevalence of Digital B2B
As employees stayed at home, in-person events and meetings were postponed, and employers started shifting their spending inward towards enhancing their AP/AR procedures and payments infrastructure, digital payments in B2B were made worse by the pandemic. Suppliers who had only ever taken wire transfers and checks started experimenting with new payment methods, including mobile and app-based payments.
Gen Z is likely to drive demand for comparable mobile payment features from their preferred peer-to-peer (P2P) platforms like Zelle, Venmo, and PayPal, as well as quick payment options. These technologies will undoubtedly raise consumer expectations for speedy settlement transactions; this technology is already in place to some extent. Instantaneous and nearly instantaneous payment transfers will be possible because of advancements in real-time and quicker payments.
Virtual Cards & Credit Cards
Although accepting credit cards is given for a supplier, virtual cards are still gaining ground. Suppliers must get ready for card acceptance, transmit Level II/Level III payment data, and use a payment platform that interfaces with ERP systems. These features are increasingly used as motivators for business payments, particularly by corporate finance teams who want a deeper understanding of their spending patterns and spend management tools.
