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Mobile Payments

5 Benefits of B2B Payment Processing

5 key benefits in 2018 of leveraging B2B payment processing

A significant number of well-established food and alcohol retailers, distributors, and suppliers remain unaware of the operational benefits that result from successfully integrating the appropriate mobile B2B payment processing solution. The positive impact of embracing B2B electronic payment technology in areas like direct store delivery (DSD), DSD shrink and inventory can be dramatic. This adds extra emphasis when building an action plan that considers the needs (and concerns!) of all the players in an organization's ecosystem.

B2B electronic payment technology has greatly advanced in recent years. Additionally, B2B payment providers have reduced the barriers of entry, both in cost and technical integration. Currently, many well-informed distributors are accepting, or are willing to accept, payment electronically. This expansion is expected to continue in the coming years, making mobile B2B payments a large consideration in doing business for all points along the food and alcohol supply chain. The benefits for customers and businesses are clear; efficient, fast and secure payments at low costs.

Next-generation B2B payment processing solutions are emerging as the new industry standards and eliminating the payment processing limitations of last century products. Many businesses still don’t understand the layers that payments must pass through to reach the required destination. The more complex the route, the greater the chances of communication breakdown or loss due to fraud. B2B payment processing, on top of improving efficiency and speed, reduces the risk of payments being accidentally diverted. As such, it is vital to know that electronic payment solutions like commercial cards, Automated Clearing House (ACH), and wire transfers have been working reliably for many years, even the newest network-based payment solutions have carried out transactions for over ten years.

Here are the top five benefits of B2B payment processing:

1. Mobile B2B Payments Save Time

A key importance to small and medium businesses involved in food and alcohol distribution, manufacture and retail is the time saved by employees no longer having to drive to the bank and wait in-line to deposit funds. The batched information that used to be delivered from the payment processor and needed to be re-inputted, now immediately appears in the accounting software or ERP system. That’s a real advantage. Rather than having to look at an Excel spreadsheet or, say, screen number one, which gives the sales totals, and then bringing up screen number two, where the transaction information is entered manually, the transaction data automatically flows into the system without any employee or business owner interaction.


2. B2B Transactions Reduce Human Error

Adding the human element into the payment transaction process increases the opportunity for errors, either in the form of entries being duplicated or data entered incorrectly or applied to the wrong account. This leads to time lost trying to locate the error, as well as frustrated customers that are over-billed, have a payment improperly attributed against their account, or get erroneous tax reporting. The seamless flow of data from the point of transaction directly into the general ledger, and immediately credited against an invoice, no matter where the payment is taken, eliminates entry errors and provides confidence that accounts are accurate.


3. B2B Payments Increase Cash Flow

Having an accurate and up-to-the-moment understanding of cash flow is a vital element for small businesses. No company can stay in business long if it does not have adequate cash on hand to pay vendors, employees, taxes, and other operating costs. Prior to processing payments electronically and having the data integrate directly into the general ledger or ERP software, businesses were often subject to long waits for invoice payments and delays in assessing current cash flow status. Having a B2B payment processing solution that provides reliable and current reports on exactly how much money a business has available at the end of each day helps it better manage payroll and inventory, pay vendors, and make better, more informed operating decisions.


4. B2B Payments Reduce Labor Costs

B2B payment processes also create savings in labor costs and better employee efficiency. Additionally, another huge benefit for business owners is the peace of mind that comes from eliminating employees from handling your customers’ credit card information, or account information. Additionally, with payments feeding directly into the general ledger at the moment of payment, it is no longer necessary to have a dedicated accounts receivable employee or accountant solely to re-enter data from credit card transactions to reconcile accounts. Costs and time spent training employees to process payments have been greatly reduced due to the operation becoming less complicated and easier to learn.


5. Accept Multiple Payment Methods

While cash remains a universally accepted method of payment, especially for consumer-facing businesses, B2B companies have undergone a major shift in the number of B2B payment processing methods they accept and prefer. In any business or vertical, the customer drives demand, and B2B customers are are in great need of robust B2B payment systems to save time and streamline payments reconciliation. In the past, checks were the preferred, and many times only, payment method offered to B2B customers. While paper checks continue to play a large role in B2B payments, financial technologies such as RDC and mRDC are changing how businesses accept and process these payments. Credit and debit card payments have increased in acceptance, and in some cases are even passing checks as a preferred payment method.


SEE ALSO: 6 Reasons to Go Mobile With Your B2B Payments


Hopefully the insight and suggestions above will serve as compelling reasons for your company to adopt a scalable mobile B2B payment solution. As customer preferences for quickly making payments continue to evolve away from cash and check transactions, it just makes sense to streamline payments and integrate them into your company's accounting system without the need for manual entry. Mobile payment technology is moving to address the issues food and alcohol buyers and suppliers still face. As decision makers implement solutions, traditional invoicing and check payments will continue to be replaced with technologies that facilitate greater speed and flexibility in processing supply chain finance and help streamline the supply chain management process. We hope the five reasons above help as you implement a scalable mobile B2B payment system. Let the savings, increased efficiency, faster settling of payments and reduced labor costs begin!


PayApp by iControl is the embodiment of that digital and agile revolution. This mobile B2B payments solution suits all the needs a business can have, be it a store or enterprise level, to ensure payments are done swiftly, securely and easily. To find out more about PayApp or to get started and see for yourself, click here.

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