Online marketplaces are all about innovation. And in the B2B procurement space, that innovation is increasingly starting and ending with better and more seamless payments.
After all, there’s an old saying about business-to-business payments: as long as it works, people don’t want to see any changes, and as a result, B2B payments have long been plagued by inefficiencies, especially when compared to the growing embrace of digital payments elsewhere.
Traditional B2B methods, such as wire transfers, checks and manual invoicing, dominate the landscape but are cumbersome, slow and prone to human error. But as online B2B platforms grow more sophisticated and globalized, the necessity for modern payment systems that prioritize speed, security, flexibility and even integration with both buyer and supplier back-end infrastructure is clearer than ever.
In an interview posted here Monday (Sept. 23), Donald Polansky, senior manager of corporate systems development at GlassCraft Door Company, told PYMNTS that the company’s own B2B marketplace has plans to utilize custom APIs and integrate with third-party enterprise resource planning (ERP) systems, automating the quote-to-order process.
With B2B platforms continuing to mature and gain share relative to legacy procurement channels, their ability to enable faster, more secure and customizable payment options has become a differentiator.
Read more: Cross-Border eCommerce Is Reshaping B2B Procurement
PYMNTS has previously covered how, when it comes to B2B payments, accepting (and offering) more options can potentially lead to more business.
As B2B marketplaces look to reduce friction across key purchase stages, they are increasingly starting by integrating smarter, more agile payment systems that align with the demands of global trade.
For example, last Monday (Sept. 16) Mondu announced a new Stripe integration that allows B2B merchants and marketplaces to offer Mondu’s buy now, pay later (BNPL) options through their existing Stripe setup.
BNPL for B2B payments provides many of the same benefits as it does for individual consumers, but on a larger scale, according to the PYMNTS Intelligence and Splitit collaboration, “Is BNPL the Next Driver for B2B Growth?”
A week earlier (Sept. 10), small business-focused B2B payments platform Melio integrated with Amazon Business, combining with the Amazon Business Reconciliation API and allowing companies to synchronize Amazon Business invoices in a single payment processing system, helping business owners save time.
Many small businesses wrestle with late payments. According to the PYMNTS Intelligence report “End the Wait: SMBs and the Protracted Challenge of Delayed Payments,” more than a quarter of small and medium-sized businesses (SMBs) in the United Kingdom face up to 20,000 pounds (about $26,000) in overdue invoices, with 36% of payments arriving late each month.
And earlier this year, FashionGo launched a net terms solution for buyers on its online B2B wholesale marketplace for the fashion industry. The new Dynamic Net Terms solution is tailored to meet the needs of wholesale buyers — a segment that is traditionally underserved — and offers dynamic net terms and payment options that adjust to each buyer’s profile and needs.
Read more: Click, Pay, Done: How Embedded Payments Could Transform B2B
The emergence of embedded finance has supercharged the digital transformation of B2B payments and commerce, PYMNTS reported earlier. Embedded finance can speed the processes involved in B2B transactions — including invoicing, purchases orders and reconciliations — by integrating payment solutions directly into B2B platforms.
Solutions like BNPL and embedded finance give businesses greater flexibility in managing cash flow, allowing them to purchase goods or services without immediate upfront payments. This flexibility is especially beneficial for SMBs, which often struggle with tight liquidity constraints.
At the same time, innovative payment solutions that support multi-currency transactions, cross-border payments, and real-time settlements enable businesses to enter new markets with confidence. By reducing the complexity of international payments, B2B marketplaces can attract a broader user base and foster global trade.
Ultimately, by adopting modern, flexible and secure payment solutions, these platforms can offer businesses faster, more efficient, and more transparent ways to transact, helping to unlock growth and drive global trade.
“What I’m most excited about is the future of B2B payments, how quickly it’s moving,” Eric Frankovic, general manager of corporate payments at WEX, told PYMNTS. He believes AI (artificial intelligence) will play a key role in advancing digital payments, helping businesses automate processes, enhance fraud detection and optimize payment strategies, all key capabilities when it comes to the importance of tailoring the payment mix to the specific needs of businesses.
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