Digital Payment Adoption Drives Business Growth

Today, in B2B payments, SMEs are still struggling to get their customers to pay on time, and B2B marketplace Solv is expanding to Kenya. Additionally, enterprises want more help buying and managing Software-as-a-Service (SaaS) applications.

SMBs’ $28 billion efforts to encourage on-time payments often fail

The average small and medium-sized enterprise (SME) receives 72 one-time or non-recurring one-time payments – representing sales to buyers that SMEs work with up to a few times per year – for services rendered or products delivered each year and 30% of these payments arrive late.

Many SMBs offer rebates to encourage their business partners to make payments on time, and they spend $28 billion a year on rebates for buyers, according to Fixing Small Business Payments, a PYMNTS and Ingo Money collaboration based on a survey of of 1,573 American small businesses. .

But these small business discounts don’t always have the desired effect, according to our research. More than a third of payments from ad hoc suppliers for which SMEs offer discounts arrive late, and another third are paid on time rather than in advance.

How Digital Payment Adoption Drives Business Growth

Enterprise-grade digital payment solutions enable organizations to collect and process payments from connected devices and consumers or customers around the world, update records in near real-time, and ensure revenue data is accurate. easy to view, compare with enterprise resource planning (ERP) benchmarks, and turn into actionable insights for the organization.

Digital payment technologies that integrate with a cash management system (TMS) or enterprise-grade ERP platform with near real-time data access enable financial institutions and businesses to authenticate contact details banks and account holders, isolate errors and initiate corrections.

Businesses are looking for help buying and managing SaaS apps

Three years ago, Ryan Neu founded software-as-a-service (SaaS) purchasing platform Vendr to help businesses save the time and money they spent figuring out how to buy software. This allows procurement professionals, for example, to focus on strategic procurement rather than dealing with 500 SaaS applications.

As Vendr grew rapidly, its customers began asking for help with spend visibility and tracking. The company announced on February 23 that it had acquired SaaS management platform Blissfully. Together, the companies will provide customers with a single solution for purchasing and managing SaaS applications.

Virtual Debit Cards Top FI B2B Payment Priority List

Although 66% of financial institutions (FIs) perceive the ability to offer customers digital payment solutions to resolve B2B payment friction as “very” or “extremely” important, only 30% say their current solutions are “ very” or “extremely” effective in addressing friction in B2B payments, according to The New User Experience, a PYMNTS and FIS collaboration that surveyed 311 financial institution executives.

Perceived effectiveness varies by customer type, with the portions of FIs serving cross-border payments customers, large corporations, and mid-market companies that view digital payments as very important to their customers being even more important.

To facilitate the consumerization of B2B payments, 64% of FIs are “very” or “extremely” ready to adopt new technologies. Another 24% are “somewhat” willing to do so.

Solv B2B Marketplace expands to Kenya

Financial services firm Standard Chartered is expanding its business-to-business (B2B) marketplace Solv, launched in India two years ago, into Kenya’s e-commerce space, according to a report by Business Daily on Thursday (3 March).

Standard Chartered Bank Kenya is likely to be among the financial partners of the platform, which offers an online marketplace, support services and credit from several lenders for small businesses, the report said. Based in Bangalore, India, Solv is 100% owned by Standard Chartered and serves micro, small and medium enterprises.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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