How C2B payment methods will influence B2B global growth

Introducing C2B Payments to a B2B Market

The payments industry splits into two entirely different worlds. In the C2B space, many ecommerce sites embed financing options that allow customers to order a new product on their phone whenever they like and with the terms that suit them. With B2B payments, however, many accountants or payments professionals do not have these luxuries and experience late payments regularly. That’s why much of the innovation in C2B payments needs to cross over to B2B.

In 2021, the B2B payments market was worth a staggering $49 trillion and is predicted to be worth $54 trillion in 2023. 10% growth may seem promising, but it actually indicates a “slow recovery in business activity following the impact of the COVID-19 pandemic.” Meanwhile, the C2B space is enjoying new innovations in the form of Buy Now Pay Later (BNPL) and virtual cards. Real-time payments have been a standard in C2B and C2C payments for over a decade. So how can popular C2B technologies influence change and operate in a B2B environment?

Boosting Cash Flow

Cash flow is essential for any company, otherwise everything shuts down.

Lack of cash flow can be a significant challenge since the systems that bring cash into and out of businesses aren’t built to optimize cash flow. Additional to delayed payments, acquirers can hold funds for multiple days before releasing them – sometimes longer if weekends and public holidays are a factor. While some acquirers may be entitled for many reasons to hold funds for a few days before releasing them, we must still be mindful of the impact cash flow problems can have on the wider supply chain. A company that must wait three or more working days will not be able to pay a supplier on time, who in turn has to wait three or more working days to pay their suppliers, and so on.

Therefore, it’s critical that companies can access incoming funds immediately, without the need to wait for settlements.