Digital payments are expected to become commonplace for Indian businesses, with company spending expected to exceed $15 trillion by 2030. By automating activities related to supply chain payments, such as accounts payable, accounts receivable, and non-standard invoicing, they provide practical answers to problems associated with conventional payment systems. By accelerating payment collection and minimizing human involvement, this change lowers reconciliation costs while increasing income.
Here are the major trends influencing B2B payments in 2024, all of which are intended to improve efficiency and streamline transactions.
The increasing importance of many form factors
Businesses (startups and SMEs) will prioritize access via many form factors (Mobile, Tabs, Web) in order to support quick development in customer acquisition, revenue, and profit. By doing away with the need for paperwork, these techniques help firms onboard quickly and paperlessly while also increasing efficiency and saving time. Including a variety of payment methods enhances client satisfaction and expedites revenue collection.
In 2022, 31% of firms worldwide made B2B payments via check; this percentage will continue to decline. It will be crucial to provide a variety of payment options in addition to solutions suited to certain requirements.
User experiences should be prioritized.
In their B2B payments, businesses will want more security and expenditure limits. Businesses’ choices to employ payment technology are influenced by a number of variables, including security, usability, and usefulness. The usage of innovative payment solutions is mostly influenced by concerns about overall security and fraud protection, according to half of small firms and 66% of big enterprises.
High credit utilization costs (43%), high payment costs (41%), and manual review (45%) are the top three issues businesses encounter while processing B2B payments. In 2024, we believe B2B will expand its products, and UX will become a crucial differentiator.
Using commercial cards
The adoption of commercial cards has been fueled by rapid digitization, improvements in card solutions, and increasing demand on corporate treasury departments to increase cash flow in response to the state of the economy. These cards enable customers to pay suppliers more quickly and take advantage of longer terms with their bank by providing interest-free credit from the card issuer for a period of 30 to 90 days.
Virtual cards enhance these advantages by providing unparalleled control over expenditure. Offering advantages like employee-issued cards and spend monitoring capabilities, they may be loaded to the precise amount of a particular transaction or budget and assigned to a certain individual or department inside a firm.
These benefits become even more beneficial in light of the growing number of remote workers. When virtual card transactions reach $6.8 trillion in 2026, B2B payments are anticipated to account for 71% of the market’s total value.
Effective cross-border payment methods become essential
The importance of cross-border payments has increased with the growth of globalization. With a 5.3% annual growth rate, the cross-border payments industry is projected to reach $238.8 billion by 2027. Companies will have to deal with the difficulties that come with using foreign payment methods, such as currency rates, taxes, and compliance concerns.
Today there are solutions to make international payments easier and easier for business owners. For companies, Transferra offers a comprehensive suite of financial services, including currency conversion, foreign payments, individual IBANs, and much more. Never before has opening a business account been so simple.
AI-powered solutions and integrated payments
The necessity for integrated payments has arisen as a result of changes in consumer behavior and market conditions; 94% of financial technology executives stress the need to respond to customers’ demands in real-time. Diverse value offerings and real-time experience may open up new income sources.
A distinctive financial experience may be provided by integrating services, merchants, and transaction simplicity with integrated payment systems. Financing solutions driven by AI are becoming more popular because they provide better transaction security and cash flow.
AI can streamline processes, protect against anomalies in transactions and personal data, automate payment processing, and improve fraud protection and detection.
Conclusion
A variety of payment options, improved user interfaces, the increasing usage of business credit cards, effective cross-border solutions, and the incorporation of artificial intelligence (AI)-driven financial services will be the main features of the B2B payments scene in 2024. These developments will quicken the world’s shift to a digital economy.
Leave a Reply