Electronic Payment Acceptance: What are the Trends and How it Impacts Your Business

B2B Payments in North America are STILL largely by check (60%); while digital payment forms, including ACH and card present, account for only 36% of B2B payments. This may come as a surprise with solutions such as Amazon Prime and Apple Pay transforming how we shop and pay for purchases. But in B2B payments, the move to digital has not been as rapid.

Digital Payments are Gaining Ground.

Change is coming. In a 2019 Worldpay survey, 40% of Paymetric’s B2B customers cited mobile payments, digital wallets and other digital alternatives as part of their future payments’ strategy.

As organizations move to digital payment acceptance, there are several new obstacles and challenges to address. Goldman Sacs outlined these in a recent report saying the movement to B2B digital payments has been slowed because many businesses have a perceived need for a paper trail, and they want to hold on to cash as long as possible. With the rise of cyber breaches, digital payment acceptance opens new issues of maintaining security and protecting personal cardholder information as it travels across the organization. Another consideration is PCI compliance requirements which enforce a minimum level of protection and procedures but come with more processes and costs associated. Adopting alternative payments and other payment options can benefit customers but also comes with added costs.

Despite the added costs, most organizations agree that adopting an electronic payment process is worth it based on the resulting benefits and long-term cost savings. Moving to digital payments speeds settlement, improves forecasting and makes reconciliation more efficient. These efficiencies also result in a more effective use of human resources.

Connections are Critical

Organizations are often challenged to connect disparate legacy systems across an organization while ensuring security and reliability. These companies are faced with the broad array of new processes and players entering the B2B space. This has made managing global B2B commerce difficult and has delayed companies’ adoption of an end-to-end digital payment platform. A recent Harvard Business Review study concluded that the top reason why digital acceptance is hampered across B2B payments is: Compatibility with existing financial systems and supplier acceptance.

To learn more, Paymetric has prepared an eBook that details the trends within the B2B payment space and how it may impact your organization. Click here to download the eBook.