Just think of the way payment used to be processed in stores before the onset of digital mechanisms like QR code, digital wallets, etc. Well, payment in those times used to be processed in a fundamental way. After the purchase, the buyer needed to scan the credit or debit card for making a payment, collect the receipt and leave. Later came the digital era starting with PayPal and similar payment processing tools. Then with the penetration of eCommerce across multiple business niches, digital wallets became the most reliable means of processing payments.
While retail eCommerce stores for consumer niches all over the globe are catching these latest technologies and trends for faster and smoother payment processing, the B2B retailers are still lagging in this respect. The inability to comply with the latest payment trends is pulling the growth for many businesses.
Most Popular Payment Trends Over Time
The success of eCommerce stores mainly rely upon delivering easy and frictionless shipping experience, and in that regard, smooth payment processing plays a crucial role. Though for eCommerce stores in the B2C segment mostly the traditional payment methods like Credit Card, PayPal, Debit Card and Cash on Delivery remain most effective, for B2B segment apart from these conventional methods, digital payment methods are now slowly taking momentum.
In spite of the fact that the B2B audience is more tech-savvy and more prone to adopt new technologies, older payment methods still dominate most B2B retail stores. For the retailers of this segment to stay competitive and performing, it is extremely important to adopt new technologies and trends.
Some statistics confirm that B2B eCommerce retail businesses all over the globe struggle to adapt to new technologies and trends concerning payment processing. As of now, B2B businesses have been seen as more reluctant to adopt changes than B2C businesses. But the future growth potential of the eCommerce business largely depends on how the stores adapt to these changes.
According to the latest report by Forrester research, the B2B eCommerce in the US will touch $1.1 trillion by the year 2020, and $1.8 trillion by the year 2023. This shows an apparent 10% yearly growth from now. There is no doubt in the fact that new technologies and trends will play a crucial role in making this growth story possible.
Why Offering Multiple Payment Methods Are Crucial for B2B eCommerce?
There are some strong differences between the payment processing in B2C and B2B eCommerce businesses. For example, in complete contrary to what happens in consumer retail stores, a business purchasing something from an eCommerce store has to evaluate a lot of different aspects which can take much longer. The involvement of several decision makers, rate comparison, evaluation of the products by different personnel, and the factors like cash flow, all put together make the entire process more time-consuming and multifaceted.
Moreover, the size of the purchase and the higher net worth of the purchase value make it more challenging for the business buyers to go for trending payment systems. Just think of a $100,000 value of purchase being conducted using a digital wallet. Most businesses for such bulk and high-value transactions will rely upon traditional, tried, and tested payment methods instead of the trending and latest ones.
On the other hand, businesses of various niches having different types of constraints may not prefer any specific payment method. They can always opt for payment solutions that suit their needs. This is why it is always advisable to offer a variety of payment methods with B2B eCommerce stores to ensure optimum flexibility and ease.
Technical Stumble Blocks to Create Complications for B2B eCommerce Payments
In spite of the importance of B2B ecommerce store to adopt the latest payment technologies, there are several technical challenges that these stores need to focus upon. There are several factors that can pull the speed of this implementation of new technologies for payment processing. Here, below we are going to explain 2 principal challenges.
1) Unavailability of the Preferred Payment Options
A considerable portion of shopping cart abandonment simply occurs because of not being able to find the preferred payment method. Just think of a situation in which you put hours of effort in product research and finally couldn't complete the purchase because of a non-preferable payment method. To address this, you need as many payment methods as possible so that you have better chances of finding the right one. To help customer assess at the very beginning, you can mention the available options in the very beginning as well.
2) Absence of Required Tools for Order and Account Management
For delivering an easy front-end shopping experience to the B2B buyers, some tools for order and account management are also important. There must be some easy reporting and management tools within the B2B eCommerce interface. These tools, apart from informing customers about the details of the price will also help them to make advance orders and get detailed reports on the processed orders.
The Challenge of Going For New Payment Methods
In the present scenario, businesses prefer offering completely integrated eCommerce experiences to their customers with the least level of friction in the process. As per the latest reports, almost half of the B2B transactions across eCommerce stores have been done using the latest and trending payment methods. Obviously, the companies have already adopted such cutting-edge payment methods will lead the eCommerce scene.
Just have a look at the below-mentioned takeaways for B2B eCommerce stores to integrate the latest payment technologies.
- With new payment methods, the B2B eCommerce stores have to ensure agile and flexible payment for customers.
- B2B eCommerce stores must consider the digital payment methods as integral parts of their business model.
- The future cutting-edge eCommerce experience will largely depend on smooth as well as a frictionless shopping experience and in this digital payment will play an important role.
The B2B business transactions tend to be more complex and multifaceted and naturally, adoption of new payment methods requires certain key considerations that we mentioned earlier. In spite of these constraints and challenges, the adoption of new technologies and methods will continue to make a bigger push for the growth of B2B business stores and websites.
Bio: Atman Rathod is the Co-founder at CMARIX TechnoLabs Pvt. Ltd., a leading web and mobile app development company with 13+ years of experience. He loves to write about technology, startups, entrepreneurship and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.