Anyone in fintech will tell you that business-to-consumer advances have largely propelled innovation. That said, some commentators have observed that, in the near future, business-to-business advancement is going to be the force driving innovation as it tries to catch up.
These commentators expect B2B innovation to catch up and eventually pass B2C innovation on its way to fintech dominance. While consumer-facing fintech developments will continue, the B2B space will be the force driving transformation.
But, if that’s true, what will drive B2C intervention in a consumer-dominated sphere? And, how will we get there? Well, let’s talk about it.
B2B Technology Lags Behind B2C Tech
So, why has B2B historically lagged behind B2C tech? It’s simple, really. It’s a matter of UX and features.
Let’s look at payments, specifically. The reason we’re seeing B2B services trailing behind their B2C counterparts in terms of innovation boils down to the intricacies involved in the B2B purchasing process.
It’s not as simple as a consumer swiping their credit card and walking away with a purchase. The B2B buying journey is often a marathon, not a sprint— it’s lengthier, requires more deliberation, and often involves more decision-makers at every stage. And, let’s not forget about managing cash flow, which is always a crucial consideration in any business transaction.
The complexity doesn’t stop at the buying process. The sheer scale of B2B transactions means businesses often lean on more traditional payment methods. Charging a $100,000 purchase on a company credit card isn’t plausible. It’s these factors that make the B2B payment landscape a different beast to tame compared to the B2C world.
The Present Situation: B2C Innovation
Video streaming and social media have forever changed the way we consume content and connect with each other. In the same way, we in the fintech world are watching a similar evolution happen right before our eyes. These changes brought a new standard of seamless, personal, and frictionless experiences, inspiring countless ground-breaking developments.
Meta’s WhatsApp amassed an impressive 150 million users since 2020. And Amazon for Business, despite being relatively new to the game, has effectively leveraged an effortless user experience to chalk up nearly $35 billion in gross annual sales in eight years. That’s the kind of momentum we’re excited about.
And let’s not forget today’s decision-makers aren’t just businessmen, they’re digital natives. They’ve grown up with the one-click convenience of consumer tech, and they’re looking for that same ease in their professional lives.
That’s why it is now our turn in the B2B tech sector to step up and take the lead. We’re poised to be the next movers and shakers in the landscape.
From IoT hardware to cybersecurity, and payment automation to big data and AI, fintech is on the move. It’s true that the global challenges we’re facing, like record-high inflation and rising interest rates, are adding to the complexities of the B2B world. But here’s where I see an opportunity: we can offer an attractive competitive advantage. This can be done by addressing pain points and doing away with outdated, manual operational processes. And that’s exactly what we plan to do.
Giving More Payment Options to B2B Customers
On that note, I see two significant barriers hindering the adoption of modern payment methods in B2B eCommerce. The first of these points is the need to provide options in the first place.
The customer-facing aspect of many B2B websites often falls short when it comes to payment options for transactions. Picture this: You’ve done your homework, sifted through various sites and vendors, picked out exactly what you need, only to find out at the payment screen that you can’t finish your purchase.
As a B2B customer, you’d expect the same payment conveniences online that you enjoy offline. They’re often simply not available, though.
It’s nice to have the option to pay through PayPal, a credit card, or some shiny new service. However, your business necessities might compel you to use a purchase order, despite its inefficiency.
The takeaway? Align the payment choices presented during the online checkout process with those offered when customers connect with their sales reps over the phone.
Coming Up Short on Order & Account Management Tools
The scarcity of reporting and management tools for B2B orders can often throw a wrench in the works for customers planning future purchases. But, that’s just the tip of the iceberg.
eCommerce providers can use a whole suite of tools to enhance the front-end shopping experience. For instance, wouldn’t it be great to finish a sale on credit and instantly see your total credit balance? The ideal scenario would be keeping online and offline orders in sync for a true representation of the total amount due or spent.
Companies should ensure that product pricing, volume discounts, and loyalty purchases are maintained across systems. This guarantees valued customers receive the same pricing, discounts, or bonuses, no matter where they shop.
If purchases can be made on credit, customers should have a clear view of their open invoices and total credit balance through the “My Account” section. In a perfect world, customers would get automated notifications of any outstanding balances and have the option to pay these amounts through the same portal.
Agility is Key
The most fruitful and enduring business relationships are the ones that embrace modernity, integration, and data-driven updates. All of these forces create mutual benefits for everyone involved.
Looking at the B2C world today gives us a glimpse into what the B2B landscape will look like tomorrow, especially in terms of efficiency and digital transformation. The up-and-coming generation within organizations won’t settle for outdated norms that have been accepted for years. They’re going to challenge the status quo and demand changes if things are too complicated. As Corcentric President and COO Matt Clark insightfully put it, “digitization is table stakes now.”
Today’s B2B tech innovations are designed to bring order to information chaos and structure to previously disorganized relationships. This allows all companies involved to tap into efficiencies that were once missed due to outdated inefficiencies and reliance on manual processes.
It’s more important than ever for forward-thinking chief financial officers (CFOs) to innovate their procedures to stay ahead of the curve. They must avoid the old-fashioned, error-prone pitfalls that could potentially derail their company’s future strategy.
Often, this means integrating systems and vendors, limiting manual data entry. It could also call for leveraging technology to automate processes, and implementing reporting to forecast liquidity. These steps not only modernize operations but also offer a competitive edge in today’s rapidly evolving business landscape.
