Business-to-Business Payments: The Rapid Evolution of a Business Acceleration Tool

Business-to-Business Payments: The Rapid Evolution of a Business Acceleration Tool

Business development is impossible to imagine without perfected payment systems. Although traditional payment methods are still alive and well, complex payment systems in this sector are becoming a thing of the past. By 2028, the value of the global B2B payments market is expected to exceed $1.6 trillion, which is why already at this moment 90% of companies are investing more in modernized payment technologies.

KYCAID specializes in developing business solutions of any complexity, so we understand firsthand how important it is to timely upgrade. Let’s talk about the most popular approaches and prospects for securely making corporate payments today.

Types and Fast Growth of B2B Payments

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Over the past 20 years, the world of financial settlements has undergone tremendous changes. Most capacities have gone digital. Although entrepreneurs still use the usual methods when they have to ask for details and issue invoices for payment, it is quite difficult and time-consuming.

Modern business moves away from this by automating Know-your-Business (KYB) processes. But the methods of settlements between enterprises have developed slowly until today, so quite archaic tools are still found in the arsenal of businessmen.

Popular B2B payments option

Credit cards

Cards remain among the major payment tools, convenient and inexpensive as they are. While credit cards provide access to extra funds, transactions can be easily tracked using electronic statements. Security is granted with one-time confirmation codes. Transactions take a few minutes to complete.

Basically, small entrepreneurs simply use credit cards to obtain additional funds, using them as a business acceleration tool. However, cards are used less often by large businesses due to high commissions.

ACH payments (Automated Clearing House)

This type of transaction is carried out via a network that coordinates automated money transfers using a routing number. This is a great option for cash flow management and regular settlements. It is cost-effective because some operations are not charged at all, and ACH can be integrated with a company’s resource planning system and other applications. But it can only be used in the United States, and for a limited time, since such transactions are carried out in batches during the day.

Bank transfers

This is a common way to make global payments. Very reliable but time-consuming. Moreover, such transfers can take too long, so in modern conditions, they are more often used only with long-term partnerships.

Payment platforms

There are many platforms and integrations, they are fast, safe and do not require immersion in financial difficulties.

Here are the most famous solutions today:

  • PayPal
  • Dwolla
  • Skrill
  • Venmo

Ultimately, all these boast lots of user benefits, except for costly transaction fees.

Paper checks

There was a time when everyone dreamed of a checkbook. This payment method has long been the most reliable and widespread, but now businessmen give priority to the speed of settlements. However, it is often used when complete payment security is needed. Furthermore, it is pretty convenient, because cashing out does not require a bank account, and checks can always be traced.

Brief Overview and Main Trends of the B2B Payments Market

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Until recently, digital transactions seemed like a pipe dream for businesses. And today there is a huge payment market, which is also growing by 10% per year. In just three years, global B2B payments' total value will exceed $100 trillion, and 80% of transactions will be digital. And all this is thanks to the optimization and reduction of costs for processing payments.

Meanwhile, the vast majority of payments in this sector are made using:

  • Checks and cash ─ approx. $12 trillion
  • ACH payments ─ $11.7 trillion
  • Bank cards ─ $3 trillion
  • Cashless payment ─ $1.8 trillion

Key tendencies

The total value of payments made via virtual cards should exceed $550 billion in 2024 as the payment method offers spending tracking tools. Almost 30% of businesses intend to use more virtual cards, and just over 60% intend to increase the use of ACH payments.

Banks will phase out paper checks, as the Federal Reserve Bank of Philadelphia plans to do by 2026. Buy Now, Pay Later (BNPL) solutions will become more widespread, growing to nearly $4 trillion in total value by 2030. Specialized platforms and services for corporate clients will be introduced much faster. And this will be the central trend for many years.

Why Onboarding is Crucial For Secure B2B Payments

How to help a client understand a complex product? The Know-your-Business service literally leads them by the hand, allowing them to quickly understand the mechanisms, complexities, and priorities of working in a “bubble” closed from scammers. Onboarding, segmentation, personalization, and consistent feedback make it easy to get things done.

The online KYB service shows motherly care for the client, providing them with all the relevant security options. While mailing a check opens the door for scammers, the service monitors for any suspicious activity. It is difficult for fraudsters to get an account and access critical functions.

On top of that, most payment systems have a team that closely monitors everything that happens. Constant testing and KYB verification ensure maximum security of payment channels, and fast communication with clients ensures reliable security.

Business verification helps ensure that you are not contacted by a partner who will try to deceive you and use your opportunities for illegal activities, fraud, terrorism, etc. It will help you understand the structure, operating model, and hierarchy of the company and identify UBOs, directors, and key figures in the business.

Eventually, the system will suspend the account if it is impossible to verify credit card information or ID. The service may require additional checks, including a request to confirm the source of funds or selective verification of transactions. All these combined increase the security of cross-border B2B payments, and no manual infrastructure is required to process them.

Benefits of our KYB

We offer a solution that ensures the accuracy and speed of business verification using the latest relevant tools. The methods we employ allow our clients to:

  • Confirm the identity of the business, and its existence and build trusting corporate relationships;
  • Check each related organization (companies, their UBOs, PEPs, SIC codes, NAICS, revenue figures);
  • Quickly onboard clients, handle trusted users automatically, and pass exceptions for manual review;
  • Expand business around the world.

We receive data from the registration authorities, but we also carefully check information about the company’s beneficiaries, including, according to sanctions lists, the involvement of politically exposed persons and negative news. On top of that, we use information directly from the business and from open sources online. Such in-depth work guarantees 100% accurate results.

Rest assured, by choosing KYCAID’s advanced KYB system, you will get a reliable, efficient, and secure business acceleration tool.