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Mobile Payments

Top 5 Cost Saving Reasons To Adopt Mobile B2B Payment Solutions

Get ahead of the curve for 2018 and read our top 5 cost saving reasons to adopt mobile B2B payment solutions to scale your business.


A significant number of successful and established companies in different parts of the world are unaware of the financial benefits of adopting electronic payment options. From a technological point of view, electronic payments or electronic payment solutions have progressed and matured in recent years, reducing many barriers and facilitating their introduction. Currently, many knowledgeable providers are accepting or willing to accept payments electronically.

B2B payment has improved traditional payment services around the world. Effective and fast cross-border networks improve money transfer services, while cards become popular for small payments. Cross-border B2B payment processing solutions are integrated with foreign exchange risk management, trade finance and multi-currency accounting software for the intelligent management of currency and cash flow risks. This expansion will continue in the coming years and make B2B payments an important factor in business, especially cross-border.

B2B electronic payment processing solutions are gradually replacing the corresponding banking networks. Corresponding banking networks are shrinking as traditional banks exit less profitable and riskier markets, creating an opportunity for B2B payment providers to fill the gaps. For many companies, the challenge is that many still do not understand at what level payments have to go to achieve the desired goal. The more complex the route, the greater the probability of failure or loss of communication due to fraud. Processing B2B payments, as well as improving efficiency and speed, reduce the risk of inadvertently redirecting or suspending payments. In this context, it is important to know that electronic payment solutions such as commercial cards, automated clearing houses and credit transfers have existed for many years, even the most recent network payment solutions have been trading for more than 'a decade.

  • 57% of organizations cite cost savings as the main benefit of moving to electronic payments
  • Other benefits that financial professionals are seeing from the increasing use of electronic payments by their organizations: improved cash flow forecast (46%), anti-fraud (39%), more efficient voting (37%).

More and more companies are finding that converting paper payments into electronic payment solutions such as virtual card number (vCNs) - a one-time account or a dedicated card account - has significant strategic advantages without initial investment costs. , IT load, risk, or system integration issues of invoice processing automation.

 

Below are some of the economic benefits for introducing B2B payment processing solutions.

 

1. Reduced operating costs

For starters, a single file download starts payments to all the suppliers of a buyer; Instructions are analyzed and payments are automatically transferred to all payment methods. This eliminates the need to connect to multiple banking systems and the cost of printing and sending paper checks. In addition, integrating VCN with general ledger into a buyer's ERP platform enables real-time payment reconciliation that eliminates the need to manually enter costly data or decipher bank messages. Similarly, VCN can be tightly integrated into a buyer's bank. And national and cross-border VCN payments are cheaper, faster, more efficient and less subject to fraud than paper checks. The automation of payment processes also reduces the risk of costly mistakes. For example, buyers with VCNs upload a single file to their servers to initiate payments to all their suppliers, no matter where they are. In this way, manual processes subject to errors are eliminated.

 

2. Incremental sales / lower cost of goods

VCN’s reduce the net cost of a buyer's purchases. With VCN, buyers have the opportunity to receive additional revenue or rewards based on card spending (away from the fees charged for the use of ACH transactions). In some cases, revenue generated by companies has turned their accounts payable department into a profit center, or at least generated resources that can be used for other investments in innovation. Buyers can also pay bills faster with a VCN than with paper checks (usually the next day for VCN’s, rather than waiting for the next audit cycle) to ensure timely B2B payments, eliminate late fees and improve relationships with major suppliers. Faster payments made possible by, for example, VCN’s help with contracting to ensure compliance with contracts. Manual audit processes create bottlenecks that prevent payments from being made on time.

  

3. Payments on the move

When using a B2B payment solution, you have access to mobile payment options that allow you to do business anywhere. You no longer need to tell the customer that they need to sign up to make payments or call a toll-free number. You can process your payments with your mobile device. Payments are processed as quickly and efficiently as if you were treating them internally at the location of your business.

 

4. Better management of working capital

VCN’s help businesses manage their working capital. This starts with the flexible payment terms and deadlines available with the card programs. With the anticipated discounts, buyers can offer the payment terms in a slippery order: the sooner the provider decides to be paid, the higher the discount. Once a buyer has approved an invoice, options are displayed to the supplier as to when they wish to receive payment. The earlier the payment, the higher the discount must be; the longer the payment time, the lower the discount.

VCN’s make it easier for buyers to use discounts for advance payments. VCN’s transactions can be done much faster than check payments, which increases the chances of a vendor accepting a particular discount offer. In addition, a single PIN can be issued for each payment transaction. This ensures that the map data can not be used for other purposes. The VCN creates a supplier credit, which the buyer then refunds to his bank that issued the card. Buyers will receive full details of any advance payment for cash management and reconciliation.

 

5. More Security and Control

Forget about having an employee wait in long lines at the bank to make deposits each day. VCNs increase the security of sensitive information. For starters, VCN programs are much safer than paper checks. Paper checks remain the most vulnerable to fraud. Paper checks also prevent businesses from managing and rationalizing all payment data in accordance with the highest industry standards. In contrast, the Payment Card PCI Security Standard (PCI DSS) describes the requirements for protecting sensitive data, improves control of the reservation process, and provides detailed control and reporting.

In addition, VCN programs provide hierarchical management and program configuration so that administrators can control security settings, system-level settings, roles and permissions / permissions, and business rules. Buyers can define VCN’s settings such as amount, location, date, merchant type, and number of times a card can be used. All purchases outside the default settings will be automatically rejected. VCN can be assigned to a specific account and dynamically funded or used only once.

 

 

Conclusion

The introduction of mobile B2B payments has been slow, but there are signs of growing interest and acceptance. There are many B2B payment solutions for businesses. Depending on the size and budget of your business, you can manage B2B payments differently. Which payment methods are the least expensive for your customers? What is the treatment cost for each method? What is the average floating time for payments? These are all factors that you should consider before choosing the best B2B payment solutions for your business.

The best B2B payment solution for your business should be the most affordable payment method for your customers, keeping the cost to your business as low as possible and making sure you choose the safest B2B payment option and more sure. The goal should be to increase sales, not risks.

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