How merchants can build a future-forward payments tech stack to win in B2B

In a growing digital economy, geographical boundaries aren’t a barrier anymore which intensifies competition. For companies ready to take on the challenge of global expansion, a powerful and secure e-commerce platform is essential. With 80% of B2B sales interactions projected to shift online by 2025, the race is on to streamline digital channels and fortify tech arsenals.

The complexity of B2B transactions—with their intricate web of stakeholders and diverse payment preferences—demands a strategic rethink of traditional commerce systems. With US B2B e-commerce sales expected to soar to $3 trillion by 2027, many merchants are wondering if their technology is prepared to capture and manage the expansive B2B market. Competitors are already upgrading their systems—clinging to legacy technology could leave you in the dust.

Collaboration is key

Partnerships offer a strategic way to build a modernized tech stack. It’s a misconception that companies need to own the entire platform. This is especially true in B2B, given the complex order-to-cash process and cross-border nuances. Today’s modern API architecture enables companies to embed solutions for expanding lending-based services, identity verification tools and invoice automation capabilities directly into the payments engine, which simplifies some of the present complexities. 

Merchants will have an easier time growing B2B business globally by taking a composable approach to creating a payments tech stack that responds directly to their buyers’ specific needs.  

What do B2B buyers really want?

At its core, loyalty begins at the payment. The first step to building a loyal base of B2B buyers is to bolster the payment choices you offer. A recent study showed that 83% of global business buyers find it important to have a variety of payment options. While businesses prefer options, over half of business buyers agree that trade credit (or the ability to pay in 30-, 60-, 90-days with an invoice) is their most preferred way to pay. 

Many merchants are not equipped to extend trade credit themselves, as it requires working capital and risk management expertise that they don’t have in house. After all, internal teams are already tasked with credit decisioning, invoice creation and collections. This is where it’s smart to leverage a third-party provider to build and manage a customized trade credit program. By meeting this critical B2B buyer preference, merchants can increase conversions, reduce risk and attract a wider B2B audience who are required by their companies to pay using trade credit.

A deeper look at the order-to-cash process

Once payment terms are in place, an important indicator for merchants is Days Sales Outstanding (DSO). This is the average number of days it takes to receive payment for a sale. From experience, most sellers don’t have a perfect DSO, meaning if they’ve offered 30-day payment terms to a buyer, it typically takes longer than 30 days for the seller to receive payment. This puts increased strain on the seller’s working capital and makes doing day-to-day business more difficult.

If a merchant isn’t getting paid on time, it’s important to examine the order-to-cash process and uncover inefficiencies. The problem may not be as simple as a customer choosing to pay late. For example, maybe an incorrect invoice was issued (which could happen for many reasons, including inputting the wrong price, quantity or item.) Or perhaps the seller’s settlement process is not streamlined, or they haven’t made it easy enough for their buyers to pay because all the currencies aren’t accepted, or statement-level reconciliation isn’t included. All these factors must be examined and modernized to thrive in a globalized, digitized B2B marketplace. By managing a comprehensive, high-functioning order-to-cash process, a company is well positioned for sales growth, cost savings, faster payments (lower DSO) and increased customer loyalty.

Building experience loyalty

Everyone can think of a standout retailer who is consistent and reliable for a familiar, speedy and easy consumer checkout experience. B2B merchants aim high to replicate this seamless buyer experience. According to a Brand Keys study, a 7% increase in loyalty is all it takes to increase lifetime profits by 85% per customer. Building a payments engine that makes it easy for business buyers to do business with you is the first step. To maximize success, here are a few examples of how a merchant can build a positive payments experience in the complex B2B buying process:

• Ease of integration to their systems: To help close a sale, 80% of business buyers told Murphy Research that a merchant’s ability to integrate with an ERP platform is very or extremely important. This reiterates business buyers’ expectation for convenience at all stages of the purchase experience. And like all things in a digital-first economy, this integration should happen seamlessly and quickly.
  
• Customized invoicing: For large enterprises, think about the high number of invoices they process daily. Merchants who can accommodate any unique invoicing needs of the large enterprises, such as listing SKUs, setting spending limits or converting currencies, are more likely to get paid on time as an invoice can be sorted and processed without additional adjustments.  
• Preferred rates: Many business buyers have grown to expect volume or loyalty discounts. These discounts only secure the sale and keep buyers loyal because it’s more cost-effective to do business with you.  

For merchants, entering or expanding into B2B is a solid strategy to grow your business. Building a future-forward payments tech stack is essential to reaching your growth goals. This tech stack should not only facilitate robust e-commerce platforms but also integrate strategic payment solutions that address the complexities of B2B transactions. By focusing on creating a payments engine that optimizes the order-to-cash process and offers flexible payment methods, such as trade credit, you're improving operational efficiency and enhancing buyer satisfaction. This leads to enduring relationships, higher AOV and lower DSO. Integrating advanced payment systems and automation into your tech stack is key to staying ahead. Join the cohort of companies who prioritize their payments process to grow their B2B sales before the competition captures your share of the wallet.