Report: Change in the year of payments (in real time) from B2B
Over the past year, so much has gone digital, so quickly, that it’s easy to think that all facets of life and business have made the leap to mobile devices, bits and bytes, to click and buy and download and stream.
But yet there are pockets of resistance to full adoption of the technology, where information flows hesitantly, where payments take days or weeks to fade, where inefficiencies are tolerated because it is. as has always been done. We’re talking about the business-to-business (B2B) space here, of course, where trillions of dollars in upstream and downstream commercial supply chains rely on phone calls, faxes, and paper checks.
As the pandemic hit full force last year, forcing millions of businesses to close and shut down – in too many cases permanently – executives and treasurers, contractors and workers in concert have had to hold on. account of the relationships that exist between buyers and suppliers.
PYMNTS /Visa According to a study, around 76% of small and medium-sized enterprises (SMEs) report having cash flow problems. And, as several business owners and executives at Visa noted, in the latest B2B Executive Insight Series – there has been at least some recognition that “the way it has always been done” must give way to “the way it must be done now”. It’s a nod to the new challenges – and opportunities – faced by businesses as they enter new markets, cross borders, make and receive payments in different currencies in a global economy that is still active around the clock and 7 days a week.
Perhaps not surprisingly, some common themes emerged as PYMNTS delved into the frictions inherent in a B2B landscape where payments total $ 120 trillion, globally, on an annual basis. Back office functions have yet to keep pace with the offering – speed and transparency – as faster payment systems take shape in dozens of countries.
Speed, of course, changes everything. The faster funds move from a buyer’s account to a supplier’s account, the faster the flow of goods and services, allowing for the emergence of more efficient supply chains, and for management activities. Cash flow improves to the point where capital can be redeployed as companies capture new go-to-market opportunities and revenue streams. “The check is in the mail” is no longer enough. Up to 91% of businesses surveyed by Visa / PYMNTS expressed interest in real-time settlement.
In a detailed interview in the eBook, Visa Alan koenigsberg, Global Head of New Payment Flows, Visa Business Solutions, and Tim Summers, vice-president, Visa DirectNote that offers such as Visa Direct allow real-time push payment functionality and may reduce the number of middlemen (middlemen can add costs to transactions).
Going digital, in real time, does not necessarily have to be the hallmark of large companies. In a panel discussion with Karen Webster, Head of U.S. Small Businesses, Visa Business Solutions, Matt Baker, CEO of Zoku Sushi Charlie yi and The best box owner Tamekah Boss said they had to adopt multi-channel strategies to meet consumer (and supply chain) demand that can change delivery models and force them to consider new payment options (such as point of sale with payment) in real time).
As B2B payments become more and more “consumed”, accounts receivable and payable services within businesses can be given a facelift. Gloria colgan, Senior Vice President and Global Head of Visa Business Solutions Card Products and Platforms, and Chavi Jafa, vice president and head of Visa Business Solutions for Asia Pacific, both agree the bottom line has been tangible: better operating profits and better balance sheets. Read on for more information on how, long after the COVID-19 crisis has receded, the benefits of B2B modernization will continue to have positive ripple effects.