The last few years ushered in the rise of digital payments in the financial technology (Fintech) space. Businesses started to focus on online payments that upheld the new norm of contactless living. In Visa’s 2022 Back to Business Study, about 73% of small businesses considered digital payments essential to their growth.
And it’s not just the B2C sector that’s impacted by digital payments. In 2021, global B2B payments accounted for $125B, with major providers seeing growth in digital payments. Banks have long been players in the payment space, but we’re also seeing the rise of all-in-one payment solutions providing more variety and innovation.
- Difference between all-in-one payment systems vs banks
- Benefits of all-in-one B2B payment system vs banks
- Get started with integrated B2B payment solution
All-in-one solutions vs. banks in processing payments – what’s the difference?
Businesses need to take advantage of the numerous benefits of all-in-one payment solutions vs. bank merchant accounts for B2B payments.
A traditional bank is only a merchant acquirer—a financial institution responsible for processing electronic payments (debit and credit card payments) of e-commerce businesses. It is only a facilitator that allows businesses to close online payments. Bank merchant accounts will still depend on a payment gateway and system to process payments from start to end.
On the other hand, all-in-one B2B payment solutions can singularly play the role of a merchant account, a payment gateway, and an accounts receivable software that reconciles payments to your accounting system. While a merchant account is simply a bank account for B2B payments, all-in-one payment solutions solve all processes involved in collecting, receiving and processing payments.
Benefits of all-in-one payment systems
All-in-one payment solutions promise to significantly streamline payments and accounting processes. Here’s why investing in such a software solution is worth it for facilitating B2B payments in organisations:
1. Accessible 24/7 and processes payment in real-time
All-in-one payment solutions operate in a digital environment that works around the clock. While merchant bank accounts can have online banking, the edge of all-in-one payment solutions is that payments flow seamlessly. It can receive payments through a payment gateway or a B2B online platform at any time, automatically processing them in your AR software and reconciling them back to your ERP.
Without this synchronisation between systems, payments made online can be hard to track in real-time.
2. Provides a check-out experience for customers
Compared to traditional payment processing through a merchant bank account, an all-in-one payment solution can create a seamless experience for e-commerce customers. These solutions for digital payments come with integrations that maintain the flow of customer information between the accounting, AR software and the payment gateway. Customers do not have to switch back and forth between systems because the payment gateway or platform processes their e-commerce transactions securely in one place.
Businesses without e-commerce websites can also provide a check-out experience. All-in-one B2B payment solutions can facilitate payments through SMS and email by providing ‘Pay Now’ buttons to invoice reminders. Clicking through the link takes customers to the online payment platform where they can pay for their invoices quickly.
When solutions are integrated, consumer data syncs easily between different platforms. This integration organises data and maintains workflows efficiently. It also provides a better customer payment experience to enhance your business’ retention initiatives.
3. Provides multiple payment options
With an all-in-one payment solution, your business can accept traditional methods such as cheques, bank transfers, and card payments that bank merchants usually offer. On top of this, all-in-one solutions are built to accept digital payments, such as digital wallets and even emerging cryptocurrencies. It lets you provide payment options your customers prefer, ultimately paying you on time.
All-in-one B2B payment solutions are made to be agile in providing new payment methods whilst optimising payments that more traditional businesses use. For instance, card payments made through a connected online platform no longer need to be entered manually on your ERP to reconcile the invoice. Through an interconnected system, all your payments flow from one step to the next without manual effort.
The critical aspect of an all-in-one B2B payment solution is that it processes all these various payments through different channels in one ecosystem to ensure you have one single source of truth for your business.
4. Processes payments and writes back to your accounting system
Businesses adopting an agile approach are turning to automation and integration to keep up with the ever-changing economic landscape. A classic example worth citing here would be the accounts receivable component of a business adopting payment solutions to facilitate seamless collections.
As mentioned, an all-in-one payment solution makes the end-to-end payment process more accessible and accurate. Once payment is received through various payment options, the payment is applied to the invoice in your AR software and automatically written back or reconciled in your accounting software. Previously manual processes are now done automatically, saving your team time collecting, processing and reconciling payments. Automation with all-in-one payments also minimises your risk of duplicate and erroneous manual entries.
Get started with an integrated B2B payments solution
Payments are a critical part of accounts receivables that affects a business’s cashflow. All-in-one payment solutions are a “one-stop shop” for businesses wanting to streamline their payment system. Such a solution can simplify their AR collection process, eliminate expensive errors, and ensure a great customer payment experience.
Speak with one of our AR experts to learn more about how an all-in-one B2B payments system can help your cashflow,