Many B2B companies accept online payments to streamline their day-to-day business operations. While several companies still take traditional cash and check payments, innovative payment methods have made digital payments easier through cards, net banking, and UPI. How have these companies evolved post-demonetisation and post-pandemic? How does the best payment gateway work to accept digital payments? We take a look at the reasons why gateways are required for B2B companies.
What Makes B2B Transactions Different?
B2B transactions are different because they happen between two businesses without involving any end consumer. The transactions may include anything from manufacturing units and parts to office supplies and accounting tools. The demand for payment gateways increased with the rise of online payments among business owners. Growing businesses often find it difficult to continue paying vendors and suppliers in cash or check.
Why do B2B Companies Require an Online Payment Gateway?
The ease and speed of transactions can significantly impact the deals for B2B companies. While purchasing services or supplies in bulk, businesses often prefer making payments digitally. They want to use their preferred mode of digital payment while ensuring security. They also need to keep a record of their payments for future accounting purposes.
Since these are not possible through traditional payment methods, adopting online payment platforms makes online payments possible in the B2B industry. They facilitate ease of payments, increase payment options, have no risk of bouncing checks, and have no hassle of cash handling.
Benefits of Using the Best Payment Gateway for B2B Companies
A payment gateway reduces the cost, time, and money for a B2B company. It expedites the transactions for both regular vendors and one-time partners. These are a few benefits a B2B company may avail of using an online payment gateway:
- A considerable amount of effort and time saved from handling cash and paper checks
- No security risks and hassles in handling cash
- Buyer’s positive credibility to the seller
- Easy tracking of invoicing, payment notifications, and goods delivery
- Faster collection of payments within the stipulated time
- Sellers transact with new businesses confidently without the fear of payment fraud
Checks and cash require a business to mail paper invoices to their clients and wait for their response. It takes a lot of skill, effort, and time, which a B2B payment gateway automates efficiently. The sellers receive their payments within a short period, thereby maintaining their cash flow.
How do B2B Companies Use a Payment Gateway?
When a B2B company allows its clients to purchase directly on its website, they enable them to choose from multiple payment options, including debit and credit cards, net banking, digital wallets, UPI, etc. The best payment gateway allows clients to pay through bank transfers and credit cards. On-demand payment links are another way to collect online payments through the client’s preferred payment mode. For regular suppliers, B2B companies can set up a recurrent billing system at frequent intervals.
Online payment platforms make payment collection more manageable and faster for B2B companies. Setting up a payment gateway is straightforward without any technical knowledge and paperwork. Set up a gateway and start collecting digital payments almost instantly with just a bank account.