B2B payment systems are a critical component of every successful enterprise. But while some platforms empower businesses to perform their best, others become an obstacle to healthy growth.
More than 27% of businesses lose 10% of their monthly revenue to inefficient payment processes. This problem only gets worse as payment sizes and complexity increase, with half of all finance professionals spending 10 hours per month managing B2B transactions.
It’s clear that sending and receiving B2B payments becomes more complicated as a business grows. However, operational inefficiencies are not an inevitability — instead, they are symptoms of an ineffective payment platform. Moving to a new platform may increase your profits and provide additional opportunities to scale in the future.
In this post, we’ll explore the importance of a B2B payment system for modern brands, discussing exactly what they are, what they should offer, and how they can help your business thrive.
B2B payment systems are digital platforms designed to facilitate the transfer of value between two or more businesses. This could occur through a direct deposit, digital wallets, or more commonly, a check. In 2022, around 40% of all B2B transactions were made through physical checks.
You do not need to own a B2B business to make B2B card payments. In fact, even B2C and DTC companies sometimes send money to other brands and businesses.
Here are some reasons why your company may need to make B2B payments:
B2B payments are subject to far more complexity than other types of payout solutions. Not only are their average invoice values typically much higher, but the number of decision-makers and heightened legal expectations require more effort than the average payment.
For example:
Unless you have a B2B payment system with the right features and tools, it can be difficult — if not impossible — to manage rapidly changing expectations.
Business owners need incredible flexibility and agility to survive in today’s economy. Slow, clunky, or outdated payment systems should be replaced by lightning-fast transfer methods, preferably through an API.
Traditional payment systems may cost much more than advertised, thanks to hidden fees, costs, and rates. Switching to a low-fee platform that only bills for what you use could save thousands in unnecessary setup costs.
Some businesses struggle with confusing payment systems that come alongside steep learning curves. Thankfully, the best B2B payment platforms offer comprehensive documentation and an intuitive interface anyone can learn.
Let’s take a closer look at how your business could get each of these advantages with the right B2B payment system.
Around 92% of finance professionals believe switching to a better B2B payment process could increase their company’s overall earnings per share (EPS).
However, not all B2B payment systems are created equal. It’s important to know what to look for before migrating your payment process or committing to a long-term contract.
Here’s everything you need to know about the key features of a B2B payment platform, starting with the most important characteristic.
The B2B payment platform you choose should offer multiple ways to send payouts to businesses. You should never feel locked into a particular payment method or feel forced to use one system over another.
The best B2B payment platforms provide support for multiple payment methodologies, including the recipient preferences of both today and tomorrow. This includes:
There should also be ways for recipients to pick customized types of digital value. In addition to cash payouts, for example, recipients could choose to receive payment via prepaid card, cash, or cryptocurrency.
Not every payment platform offers the flexibility to integrate with your existing tech stack. Some provide limited solutions with pre-established partners, which may force you to switch from one tool to another. Others only provide out-of-the-box options, forcing you to create a solution that suits some, but not all, situations.
It’s critical to choose a B2B payment system that comes with an accessible API. Not only can this reduce friction between your existing systems, but it also ensures your business has plenty of room to scale as different needs arise.
Leading brands have used Runa’s API to:
Automation is key for modern B2B payments. In fact, implementing an automated process for your accounts payable (AP) system could save you 70 to 80% more time compared with manual methods.
There are a number of ways your B2B payments platform can assist with payment automation. For example, you should be able to tap into an API and create a bespoke solution for your current tech stack. You should also have access to features like mass payouts that can send multiple payments at the touch of a button.
While looking for a B2B payments platform for your business, be sure to speak with your sales representative about existing automation options. If none or few are provided, you may want to look for an alternative like Runa.
Forex capabilities are a must-have in any B2B payment system. Without it, your business will have a hard time expanding into international markets.
Today, many businesses struggle to understand exchange rates for B2B payments. Acquiring a built-in solution with your B2B payment system can abate confusion, limit human error, and assist with international currency exchanges.
Not all B2B payment platforms let you instantly receive disbursed funds. In fact, some put a hold on certain amounts or accounts, which could slow up your processing system or exacerbate existing inefficiencies.
Modernized B2B payment platforms don’t come with these restrictions. By integrating seamlessly with your accounting software and instantly reconciling payments, you can quickly access sent or received funds and keep business moving as usual.
Real-time access to funds also supports cross-border payments. Since users can send or receive funds 24/7, you don’t have to worry too much about time zones cutting into your retrieval dates.
Fraud is on the rise within the business world, with an estimated increase of 134% in the first quarter of 2022. Choosing a B2B payment platform with bank-level security is one of the best ways to prevent the worst from taking place.
What does it mean to have bank-level security? For one thing, above-average encryption. This ensures bad actors or those with malicious intent can’t access your sensitive financial information. Bank-level security also provides two-factor authentication (2FA) to stop unauthorized users from accessing your details.
Keep in mind that bank-level security is only one element when it comes to peace of mind in your payments platform. It’s important to select a holistic solution that offers other ways to help you rest easy, including:
B2B payment processes are complex enough as it is — so choosing an even more complex payment interface could prevent your system from functioning as intended.
If you want to avoid costly miscommunications or unwanted payout snafus, you should look for an intuitive B2B payment platform offering both customer support and transparent information. You should be able to:
Since platforms like Runa are available in multiple countries and languages, you can ensure even international transactions are completed quickly, seamlessly, and intuitively.
A more efficient B2B payment system begins with efficient reporting. Data-driven approaches are necessary for survival in an increasingly complex environment, which means reporting — not just manual analytics — is critical for efficiency.
You should look for a B2B payment system that provides the following types of financial metrics:
Platforms like Runa are equipped with built-in analytics regarding all your B2B payments. You can filter critical transaction data and take a closer look at revenue streams to empower better decision-making and enhance your payment process over time.
Few B2B payment platforms have the ability to compete with an all-in-one payment platform like Runa. Our digital value infrastructure provides the scaffolding you need to create customizable payouts to other organizations in your network. No need to connect with multiple tools or platforms — everything you need is right at your fingertips.
With Runa, you can have:
If you’re curious to learn more about Runa’s all-in-one capabilities, you’re welcome to set up a no-obligation demo at any time. Our team would be happy to walk you through our built-in features and solutions, then help you explore our API and consider new possibilities for your brand.