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As a universe around us digitizes, payments are no exception. The approach we conduct income and make payments has changed from earthy channels, like money and checks, to digital methods, like cards and online platforms. And yet that’s been a long-term shift, it’s one that’s occurred rather seamlessly.
This isn’t a box for businesses, where a business-to-business (B2B) payments routine is extremely some-more complex, and as a result, roughly wholly analog for a infancy of businesses. When businesses compensate one another, like exchange between a retailer or a buyer, a routine is cumbersome, involving invoices, waits of 30-to-120-days, mixed banks and platforms, and phone calls. And when those payments occur overseas, even some-more attrition is involved, like letters of credit.
That creates payments a tip pain indicate for sellers and buyers alike, since a existent routine is cumbersome, expensive, and mostly unsafe. And yet digital solutions exist, until now, they’ve been too dear and formidable to be permitted to a infancy of merchants, quite smaller businesses — a race that’s harm a many by a hurdles of a existent system.
However, a tides are commencement to turn, and barriers preventing firms from digitizing their B2B platforms are solemnly starting to erode. Business payments are finally throwing onto consumer remuneration trends, yet it’s still a delayed process. As consumer record becomes some-more available, back-end creation is apropos simpler, and cheaper, for payments companies. And as consumer-side digital payments adoption starts to stagnate as a marketplace saturates, B2B is apropos an increasingly savoury greenfield for companies looking for a new, remunerative market.
A new news from BI Intelligence addresses what’s been holding firms back, because they’re relocating brazen now, and what they mount to benefit from creation their payments processes digital. It will also plead intensity approaches for relocating into a space, and because there’s no “one ideal” B2B payments solution.
Here are some of a pivotal takeaways from a report:
- The business-to-business (B2B) payments marketplace is a immeasurable opportunity. In a US, B2B payments reached an estimated $18.5 trillion final year, vastly outstripping the consumer-to-consumer (C2C) and business-to-consumer (B2C) realms.
- The complexity of B2B payments is holding behind innovation, though times are commencement to change. Consumer payments creation and a immeasurable greenfield event are creation a space some-more permitted and some-more appealing to payments firms, that is translating to broader marketplace accessibility for merchants.
- But until digitization permeates all stages of a formidable B2B payments process, and allows those manifold segments to work in tandem, we won’t see any vital stairs towards an attention standard
In full, a report:
- Sizes a B2B payments marketplace relations to other vital US remuneration segments
- Explains how a B2B payments routine works, and what creates it so difficult relations to consumer payments
- Discusses a pain points compared with analog B2B payments
- Analyzes a factors behind eroding barriers to attention digitization
- Evaluates what it will take to eventually build adult an industry-wise digital payments standard
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The choice is yours. But however we confirm to acquire this report, you’ve given yourself a absolute advantage in your bargain of B2B payments.