In today’s financial environment, payments take various forms to facilitate the transfer of money, goods, and services, which also involve modern methods such as credit cards, wire transfers, and even cryptocurrencies. You no longer have to wait for days to send or receive payments!
Business-to-business (B2B) payments play an essential role in this ecosystem, so let’s learn more about the topic and explore the role of Buy Now, Pay Later (BNPL) in business development.
B2B payments are complex payments or transactions between businesses. Usually, they entail large amounts of money on a regular basis and are particularly complicated when it comes to international sales and taxes.
But what is a B2B payment in simple words? Imagine you are a shop owner and need deliveries weekly. When you arrange with a vendor and pay for their services, this is a B2B payment. You can even opt for a long-term relationship with the same vendor and arrange to pay via a consistent schedule. It’s not only about products! The same principle can apply when you purchase a SaaS solution to help you manage your business better.
The good news is that when a regular sales relationship has been established between the buyer and the seller, the payment process gets simpler as payments occur regularly, with payment details already being integrated and verified. This saves time, manpower, and money on both sides.
Though businesses globally vary, many will agree that when it comes to money transfers in B2B settings, usually the main aim is to speed up days sales outstanding, which measures the average time a company needs to collect payments for a sale.
With the rise of financial technology innovations, businesses can choose from different payment methods to execute transactions safely and efficiently. Some of the popular methods include:
Having diverse B2B payments is crucial for business development, especially for small and medium-sized businesses that often lack financing and need some financial flexibility to meet their goals.
Take installment payments, such as BNPL solutions, for example! Such payments, which are comparable to a loan, can enhance B2B e-commerce practices and support businesses even in developing economies.
Here we should note that BNPL in business-to-consumer (B2C) payments is already a popular payment option globally. Why? Simply because it comes with numerous benefits for sellers and buyers. Including lower cart abandonment rates and higher shopping cart and customer satisfaction! BNPL providers also help those without access to traditional credit to get high-priced items and support merchants in increasing their revenue streams.
That’s why it’s no wonder that BNPL in B2B settings is also gaining traction across the globe.
The financial landscape keeps changing, so it’s natural to assume that both B2B and B2C payments are also transforming in order o make transactions and cross-border purchasing simple and fast. BNPL is one of the most tech-savvy ways to achieve that and help businesses increase their revenue and customer base.
With Tarya – a leader in the fintech field – BNPL integration is not only effective and beneficial but also fast, safe, and customizable. Just what your business needs!