Are checks and wire transfers a thorn in your side in your business lately?
A June 2017 bulletin from the Reserve Bank of Australia entitled The ongoing decline of the check system found that checks accounted for just 1 percent of non-cash payments in 2016; Their popularity has been superseded by other tools such as debit and credit cards and direct credit payments.
Fast-forward to 2022, and research suggests that the COVID crisis has further accelerated the trend away from checks as blocked consumers and businesses choose to send and receive payments electronically. August 2020 by AusPayNet Action plan for the future payment situation noted that if current trends continued, there would be no checks in circulation within five years.
The rise of B2B e-commerce
B2B e-commerce, meanwhile, is on the rise as companies of all stripes and sizes take a leaf out of the consumer’s playbook and let their fingers do the work. Forrester predicts that by 2023, B2B e-commerce will be worth $1.8 trillion in the US alone.
According to a study by e-commerce provider Sana Commerce late last year, over two-thirds of business shoppers are spending more time and money online than they did before COVID. A survey of businesses in seven countries found that average spending has increased by 45 percent since the pandemic began.
But selling to other businesses online isn’t as simple as sprucing up your website and waiting for the orders to come in, just like in real life. Like their consumer counterparts, business customers want end-to-end shopping experiences that are fast and seamless, and they will take business elsewhere if they don’t get them.
A question of trust
This poses a problem for organizations that don’t use an e-commerce platform that tightly integrates with their billing and invoicing solutions and payment gateway provider of choice.
Cumbersome, cumbersome payment processes can be a real deterrent for business buyers, as can incorrect or incomplete invoices.
Because payments are all about trust; the foundation of every B2B relationship. Invoicing correctly and on time every time reinforces that trust and gives customers the assurance that your company is a professional and ethical provider they can rely on to run their business properly.
Some will not be willing to give “billing bunglers” a second chance. Instead, they’re navigating to a competitor that understands what professional service looks like in the digital world and can deliver it quickly and reliably, from order to invoice.
Nowadays, the ability to accept digital payments is an integral part of this service.
Laying the foundations for success
Acquiring the right infrastructure makes it easier to meet and exceed the high expectations of B2B customers.
This is where revenue management technology comes in. While some companies may try to develop their own bespoke solutions, integrating disparate billing and payment systems with a payment gateway provider can be a complex and expensive process, and supporting the bottom line can be a burden for pressure ICT teams.
Implementing a cloud-based solution that covers the entire revenue cycle is easier and more secure. This enabling technology allows you to track and manage your customers and their orders, bill them accurately and gain insight into the entire customer and payment journey.
Choose one that integrates seamlessly with your company’s ERP solution and your chosen payment gateway provider, and you’ll be well placed to provide business buyers with a great online shopping and payment experience.
As Australian businesses continue to focus on all things digital in 2023 and beyond, it’s an investment that will likely pay off for many years to come.
https://insidesmallbusiness.com.au/finance/cashflow/why-optimising-your-billing-arrangements-will-give-your-b2b-business-a-boost-in-2023 Why optimizing your billing arrangements will give your B2B business a boost in 2023