PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Reality behind Making B2B Ecommerce Buyer-Friendly

Steve Murphy by Steve Murphy
April 11, 2019
in Analysts Coverage, B2B
0
The Reality behind Making B2B Ecommerce Buyer-Friendly

The Reality behind Making B2B Ecommerce Buyer-Friendly

21
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This referenced article appears in Digital Commerce 360 and in a nice, summary form captures the large opportunity awaiting those businesses who embrace e-commerce.  The article is written by a member of one of the alternative lending fintechs who are involved in the provision of liquidity to buyers and suppliers. We recently covered the space in a report titled B2B Marketplaces: Disruption Presents Opportunity. The overall point there being that a massive spending tool shift is occurring based on the convergence of systems and processes servicing the B2B e-commerce space.

‘Buying online has become more speedy, simple, and seamless than ever over the past decade. We are all used to a one-click world in which we order on Amazon.com and a package arrives on our doorstep the next day. We hardly consider the mechanics of how we pay for everything from Uber rides to Netflix movies to Walmart groceries: Credit-based transactions are swift and efficient; products are sent; we get what we need—end of story…..Historically, this has not been the case in the world of B2B e-commerce, which requires more highly complex transactions than in the consumer world. Unlike clicking “Buy” on Amazon, for example, purchasing or selling B2B goods and services often involves multiple decision-makers, high-value deals, and a finely targeted customer base.’ 

We couldn’t agree more. The gist of the article goes on to discuss the underlying need for instantly available credit in order to make the B2B commerce space more real-time in execution. The historical use of credit and other cards works but is limited to those organizations on the buyer side who qualify, which becomes an ever decreasing pool based on business size, while on the supplier side one must be willing to accept the ad-valorem cost of acceptance. These costs are widely variable and lower than what most suppliers perceive (especially when compared to the end-to-end costs of other payments types), but nonetheless remain a gating factor. So the author points out growing methods of applying fast decision-making for credit using latest gen tech.

‘Now, B2B payments can eliminate the wait as well through AI-powered ecommerce payments technology, which can offer near-instant credit decisions within the workflows of other platforms, marketplaces, portals, and applications. For example, a “net 60” payment option can be made available during the online checkout process….Now that nontraditional lenders—which are actually data-driven technology companies—can leverage AI and machine learning to tame the torrents of data around business transactions, the traditionally slow, cumbersome B2B payment ecosystem can now evolve. It helps that small-business banking transactions are more likely to exist in the cloud, which allows credit underwriting to rely on increasingly “open” banking with more accessible data.’

This is one of the reason why banks of all sizes have been working with fintechs in collaboration efforts to reach all available markets for liquidity products in the fast growing B2B e-commerce space.

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

Tags: B2BEcommerce
21
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    payments friction

    Too Much Payments Friction Can Lead to Customer Chafing

    March 28, 2023
    online fraud

    Understanding the Cost of Online Fraud and How to Prevent It

    March 27, 2023
    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the PayPal report