Business-to-business (B2B) payments are generally last on the innovation train. Still, the lack of modern B2B payments technology is nowhere more evident than in the technology industry itself. A recent Gartner survey reveals that challenges plague technology purchasing in the B2B space. Technology buyers routinely face difficult buying experiences related to legacy purchasing processes, marked by poor communication and an overwhelming array of choices. Unsurprisingly, 95% of these buyers said they would rather have a fully digitized buying experience.
For vendors, computer software tops the list of industries likely to have trouble keeping on top of accounts receivable (AR). The information technology (IT) sector waits the longest for customers to pay invoices.
The “B2B and Digital Payments Tracker®” examines the current impact of legacy B2B payment processes in the technology industry and how automation and innovation of these processes can benefit the industry.
A recent Gartner study indicates that the challenges of making B2B technology purchases drive an overwhelming trend toward buyer’s remorse. The survey revealed that 60% of technology buyers engaged in renewals or expansions of “as-a-service” agreements live to rue nearly every purchase decision. This figure is up 6% from 2020, largely due to a cumbersome and confusing legacy buying process. Tellingly, 95% of technology buyers said they would have preferred a completely digital purchasing experience.
Economic headwinds are not blowing companies off course in their technology and software investments this year, according to a recent report from software marketplace G2. Based on the responses of 1,700 global B2B software decision-makers, half anticipate spending more in the next two years despite economic uncertainty.
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In a world where consumer payments’ evolution is moving quickly, B2B payments often still follow longstanding traditions. The use of legacy B2B payments and processes seems out of place in the technology industry. Still, even large tech firms are no strangers to it — and they may be some of its biggest fans. However, no industry knows better than technology that lacking a customer-centric strategy puts a business at risk.
To get the Insider POV, we spoke with Matt Wegner, vice president of global payments and risk at Adobe, about why the tech industry is overdue for a B2B payments upgrade.
Frustrating, legacy buying experiences, suboptimal communication and a surfeit of choices make up the daily routines of technology buyers. These routines result in longer buying cycles when investing in expansion. On the receiving end, tech companies have some of the biggest issues with late invoice payments. With technology investments proving relatively inflation-resistant this year, the industry could see strong competitive and revenue gains from investing in the B2B buying and payment experience on both sides of the equation.
To learn more, read the Tracker’s PYMNTS Intelligence.
The “B2B and Digital Payments Tracker®,” a collaboration with American Express, examines the current impact of legacy B2B payment processes in the technology industry and how automation and innovation of these processes can benefit the industry.