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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.
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.
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.
Solution providers that can offer this choice in payment “will be a critical differentiator” in the year and years ahead, said McCarthy, adding that AR platforms must allow B2B vendors to offer their payers a range of payment choice beyond ACH or checks, with more firms embracing commercial cards, PayPal and other alternative payment technologies.
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. “As a whole, you’ll see a lot of innovation in the industry,” he concluded.
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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