What’s Up for B2B Electronic Payments in 2017?
As we start off 2017, what can we look forward for B2B payments? Well, the transition from paper to digital may be slow in the B2B realm, but changes are certainly afoot. The industry is looking to reduce friction or delay in payments to optimize cash flow through B2B electronic payments. This is one way to ensure speedy cash flow. The B2B payments space is likely to head in multiple directions, thanks to technological innovation in fintech that helps improve corporate payments, cash management, and faster payment initiatives offering opportunities in speed and efficiency. Cash management is key in businesses like these, that is why the use of collection agencies is important just in case. To learn more about this, companies can see here to get a better idea.
The use of paper checks is more and more seen as being inefficient for any business. Technological evolution and new functionalities, such as escrow solutions, promise to expand capabilities of directory-based marketplaces, turning them into transactional marketplaces. These make it easier for the merchant and supplier to not only find each other on the online platform, but also carry forward transactions, besides solidifying terms of the contract. This ensures quick and timely payments.
Related: Ditch Paper Checks and Move to eChecks to Save BIG on Transaction Costs.
Same Day ACH payments
Additionally the frequency of global B2B payments is expected to increase. The Same Day ACH initiative can further help the smooth flow of B2B transactions. Imagine a utility company being able to quickly spot a declined payment and immediately making alternative arrangements with users.
Same Day ACH payments can also be used to cover payroll and other expenses, so there is smooth operational flow.
Besides, there has been a significant rise in mobile payments, which is expected to change the functioning of B2B. Through one device, financial decision makers can control multiple payment methods at a single point of contact. They can identify the particular account with which they want to make payment to suppliers and other entities.
Related: 5 Important Same Day ACH Questions.
Bottom Line
Additionally, B2B electronic payments will help to more effectively manage accounts receivable and provide one-stop solutions for partial or staggered payments. This will further improve efficiency in transaction records and make reconciliation of accounts easier. B2B Companies Should Accept Credit Cards to Increase Revenue.
Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!