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Business to business organizations provide services or goods to other companies, unlike business to consumer (B2C), which is when businesses transact with consumers (individuals). B2B vs. B2C Payments Despite the fundamental similarity that money is being given from one entity to another, B2B and B2C payments are quite different.
In many, if not most, business-to-consumer (B2C) payment contexts — insurance and payroll, for example — regulatory structures govern exactly when a payment has to arrive. On the other side of every story about float as a possible liquidity advantage for a payor, there is a payee for whom it is a major cash flow liability.
The Tracker includes a data-rich Deep Dive that examines how faster payment systems are ushering in changes to the B2B and B2C payment markets. With services becoming available in such markets as the U.S., Smarter Payments Make Marketplaces Smart. However, change isn’t always embraced quickly by all.
The migration of the procurement and purchasing process to seller platforms and digital marketplaces will be a driving force into 2021, B2B payment leaders agree, and this trend will drive further change in both payer and payee expectations. For some B2C firms, that meant expanding into the B2B market.
Harnessing scale will also become increasingly important for the future of B2B and B2C payments innovation, in the context of remittance payouts and beyond.
That’s not such good news on the business-to-consumer (B2C) or business-to-small-and-medium-sized-business (B2SMB) front, where checks still, more or less, dominate the landscape. Large providers, drug manufacturers and insurance firms have big innovations that are moving them away from checks. Cutting The Clutter Out Of The Process.
The pain builds up within the organization, and has ripple effects on suppliers, vendors and other payees, Webster noted, especially as payments are delayed. There are inherent differences between B2C and B2B transactions, he noted. In the case of the latter, B2B transactions are relatively complex.
Both B2B and B2C disbursements are dominated by checks but are headed toward a formation of networks that will adapt constantly, along with tech innovation and new requirements across mobile money and credit cards and other payment methods. 2) The Need For Networks. 4) The Need To Partner .
Today, their technologies must communicate with existing infrastructures as systems migrate to the cloud, address the points of friction before and after payment, and support the needs of not only the corporate payer, but of the payee, too. But, he told PYMNTS, there are a few areas where the industry should perhaps reexamine its approach.
Because the cost is unpredictable and wires are expensive to send, marketplaces usually wait until a payee has reached a minimum credit on their account before the company will make the payment. Likar explained that making payments on a weekly or daily basis is a smarter way to handle working capital.
That’s not such good news on the business-to-consumer (B2C) or business-to-small-and-medium-sized-business (B2SMB) front, where checks still, more or less, dominate the landscape. Large providers, drug manufacturers and insurance firms have big innovations that are moving them away from checks. Cutting The Clutter Out Of The Process.
B2B and B2C transactions are moving rapidly into the ePayment domains. Better B2B and B2C relationships: ePayments could enable credit functionalities and convenience of payment. These, Both payer and payee receive notifications of funds transfer, which makes it a dependable process.
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