Real-Time Payments Raise the Bar for Cross-Border B2B CX

In the business-to-consumer (B2C) space, faster digital payments, refunds and streamlined shopping-cart management have allowed consumers to prioritize customer experience (CX) alongside traditional drivers of retail loyalty such as affordability and product or service quality. 

Things have been different in the business-to-business (B2B) space, where vendor payments have not benefited from the digital transformation of the global marketplace in the same ways. Payments experiences for businesses sending and receiving funds across international borders, for example, have remained relatively static. 

However, the drive towards transparency, convenience, lower cost and speed — all features from the consumer world — have influenced user experience expectations for B2B transactions. 

Tech is changing treasury — and, by extension, global payments. The massive shift of consumer payments to online conduits has set expectations that interactions between buyers and suppliers should be just as fluid and intuitive, Shahmir Khaliq, global head of treasury and trade solutions at Citi, told PYMNTS’ Karen Webster in November. 

“Fundamentally, the bar has been raised across the board,” Khaliq said. 

Read more: Citi: Innovating Trade Finance Requires Instant Payments, Digital Platforms 

Enhancing Payments Experiences 

“Mapping The Global Commerce Future,” a PYMNTS and Citi collaboration, outlines five ways instant payments can enhance both B2B and B2C payments experiences. 

Get the report: Mapping The Global Commerce Future 

First, the funds are typically available 24/7 globally and in real time to payees. This around-the-clock availability means that consumers and B2B clients can avoid the delays associated with traditional automated clearing house (ACH) processing. 

Second, transactions can be funded in real time. This real-time transaction funding can significantly reduce, or even eliminate, payment delays that can grind businesses and the supply chains they depend on to a halt. 

Third, they allow simple, intuitive mobile payments that match the speed and ease of desktop transactions and provide B2B clients and customers consistent user experiences. 

Fourth, instant payments provide lower transaction costs, and that translates into long-term savings for businesses at scale, enabling treasurers to reduce the costs of cross-border business growth. 

Fifth, instant payments may provide enhanced financial inclusion for businesses in regions lacking modern banking infrastructure. That can provide new opportunities to businesses launching marketplaces in regions with limited banking resources. The ability to send and receive cross-border payments to mobile wallets is critical for vendors in these areas. 

Driving Business Growth 

Online marketplaces are often made up of thousands of individual suppliers, so delays in cross-border payments can disrupt global supply chains and make revenue flows for eCommerce brands erratic. This, in turn, hinders a treasurer’s ability to deliver accurate forecasts and manage risk. 

As a catalyst of innovation, consumerization is driving fast-growing B2C and B2B client engagement and facilitating rapid B2C payments, making more efficient treasury functions the new foundation of sustainable cross-border growth strategy.