B2B Payment Modernization – Why It Matters and How to Implement It?

B2B transactions remain lagging behind modern forms of payment for individual customers. Waiting for an invoice to be issued and paid takes time and disrupts a company’s cash flow. Existing payment methods are also not aligned with current security requirements, and, in many cases, the fraud is a matter of time.

That’s why there is a growing business clamor for real-time payments, secure blockchain-based solutions, and increased participation of AI and ML in B2B payment processes. Eighty percent of B2B leaders surveyed by McKinsey point out that omnichannel is as effective as or more effective than traditional payment methods. Without modern solutions, local and global transactions are unsafe and insecure due to the lack of real-time visibility into payment status.

A study conducted by S&P Global shows that 46% of small and medium businesses rely too much on manually managed financial tasks. Because of this, they experience uncertainty in managing cash flow and waste time on tasks that could be automated with accessible tools. If you’re facing similar challenges at your company, check out other business areas you can transform with business payments modernization.

B2B electronic payments let you dramatically cut down time-consuming manual processes and replace them with top-notch FinTech solutions. The B2B payments software flawlessly monitors recurring payments and accurately meets transaction deadlines, eliminating human errors that could lower your company’s reputation.

Automating payment types in your company provides real-time transaction insights and monitoring across the payment chain. Blockchain and AI-powered solutions allow you to increase transaction security and detect suspicious behavior that could lead to money loss in your company.

The United States and EU countries are introducing electronic invoices in their territories to reduce opportunities for financial fraud and force companies to modernize their current invoicing systems. With e-invoice registries, outdated software is replaced by unified, modern systems that enhance safety and streamline the payment document exchange.

Using legacy payment solutions these days is not only dangerous but also unappealing. Like individual customers, B2B decision-makers are interested in digital payment options that shorten the transaction time to the bare minimum and enhance customer experience.

65% of banks interviewed by Accenture will introduce cloud infrastructure in the next 2-3 years, and 61% want to give access to real-time data. The figures show that not having these solutions would suggest your approach to B2B payments is outdated.

Nowadays, business-to-business transactions go beyond the borders of countries and the area of continents. Traditional transaction methods are insufficient if you want to grow your business abroad. Find out how to successfully implement modern and faster payments for business clients.

How do you choose modern technology for the B2B sector that will truly streamline transactions with other business entities and not just clear the company budget? First, pay attention to universal factors essential for choosing a new system. To ensure that a modern application increases payment efficiency, check the ability to integrate the software with your existing infrastructure.

Streamlining your processes can result in future business growth, so review the scalability of the B2B payment solution you’re interested in. Besides an efficient backend, don’t forget about a convenient and intuitive payment experience, so also focus on the user experience and responsiveness of the system on any device.

If you haven’t yet found a solution that meets the above conditions, consider custom financial software development. This approach will allow you to get cutting-edge software that easily integrates with your in-house infrastructure.

How can you impress your stakeholders and feel like you made a good choice? Follow the step-by-step guide to benefit from the new and secure payment solution.

1. Assess your needs – evaluate current payment processes and list specific requirements to reach your business goals.
2. Choose a scalable solution – think about the future and choose a payment system that will allow your business to grow.
3. Prioritize security – look for solutions that offer advanced security measures, such as encryption or multi-factor authentication, to protect sensitive data.
4. Integrate with company infrastructure – ensure the new payment solution is compatible with your CRM, ERP, or existing financial systems to manage data efficiently.
5. Leverage automation – choose automated workflows for payment processing, compliance checks, and reporting to reduce mundane tasks in your company.
6. Remember about compliance – don’t pick the applications that are not compliant with industry regulations and regional laws.
7. Turn on multiple payment methods – be flexible and provide various payment options to meet different preferences.
8. Monitor transactions in real-time – utilize systems with real-time monitoring as their core function to identify and address anomalies or security issues.
9. Train your team – provide user training on the new transaction system to maximize the benefits of the technology.
10. Plan reviews and updates – continuously assess the performance and security of the application to be one step ahead of competitors and cybercriminals.

Some of the positives of introducing digital solutions are also their dark corners, which you can’t ignore. One of the most important threads is how the new system integrates with your existing infrastructure. Problems with a ready-made solution can deteriorate your company’s efficiency and force you to spend money to develop a different system.

Before implementing modern financial software, you must entrust compliance and security monitoring to the right people. If you can’t find them in your company, hire external specialists. Also, don’t forget the importance of regularly evaluating your employees’ skills. Check their knowledge and inform them about new functionalities with system updates.

Do you want to get inspired? Read the success story of Siemens, a well-known technology company that faced challenges managing its complex global payment systems across multiple currencies and regions. Implementation of an automated, cloud-based B2B payment solution centralized its global payment operations and provided real-time visibility into transactions. As a result, Siemens reduced payment processing time by 50% and cut operational costs by 40%.

Another interesting case is BP, a global oil and gas corporation that needed a payment solution to provide security and compliance with changing regulations. They adopted a blockchain-based B2B transaction solution that improved payment security by 30% and helped achieve a 15% reduction in overall transaction costs by eliminating intermediaries.

Many companies will spend the next years modernizing payment options to make B2B transactions as fast and seamless as everyday purchases by individual customers. Perhaps by 2030, cash flow challenges related to waiting for payment will be a thing of the past, and employees will focus on tasks other than issuing invoices and reminding contractors to pay them.

Don’t let a lack of modern solutions diminish your attractiveness in the customers’ eyes. Arrange a consultation with Scalo experts and learn how we can modernize your outdated systems to make them robust, secure, and compliant.