How Fintech Solutions Are Reshaping B2B eCommerce in the UK

Digitalization Trends in B2C and B2B

B2B eCommerce – or products and services exchange between companies via electronic platforms – is growing at a towering rate. According to Statista’s report, its share in the B2B e-commerce market in the UK rose to 46% in 2024 from 33% in 2023 and it is projected to be 56% by the end of 2025. That is quite an astonishing result given that only 7 years ago a McKinsey research showed that overall a B2B digital maturity is below B2C. The calculation was based on an assessment of digital practices that drive high performance and back then B2B scored 28 out of 100 whereas B2C scored 35. How did B2B eCommerce manage its growth journey?

B2B specifics 

Naturally, B2C eCommerce was the first to benefit from digitalization since its processes were straightforward, did not involve many participants, and were easy to automate. This was not the case for B2B where sales processes 

• have significantly longer and more complex approval cycles

• include price negotiations for bulk or repetitive orders

• can vary depending on expectations for negotiable payment solutions and schedules

Nevertheless, the bigger market size makes B2B a desired area of further digitalization and eCommerce platforms are playing a vital role in this process. 

Possible eCommerce options

It’s worth clarifying that by electronic platform here we don’t mean a brochure-type static website with little more than company information, but a robust electronic system with everything required for trading.  Though it’s still possible for a trader to build their own eCommerce platform, it makes more sense to delegate it to an already existing provider for a quicker and more efficient business launch. There are two main categories of platform providers to pick from: 

• eCommerce portals: they give complete control over customer experience, and allow you to establish a strong brand and relationship with clients but require you to go the extra mile to provide a high level of service.

• Marketplaces: they offer higher visibility, and unlock access to the marketplace’s client base but ask to sacrifice the freedom of brand-building and customer experience control, putting you in a very competitive environment. Also, they command high customer acquisition rates.

eCommerce add-ons and FinTech

Marketplaces and eCommerce portal providers compete for clients by increasing available services with the help of add-ons that are available for selection during the buyer or seller onboarding processes. It is quite common for eCommerce platforms to prefer not to invest in their own add-ons but rather to provide an infrastructure for third-party services’ plugins. This is exactly where FinTech players have a say.

As the name suggests, FinTech solutions are usually apps or software dealing with payments and might be present in different forms:

• Direct Api Integrations

• Payment Gateways 

• Embedded Payments (Front End integration) 

• Payment Plug-Ins (plug-ins for popular platforms like Magento)

All of them can be used for: 

• Instant payments (Cards, Transfers)

• Buy Now Pay Later (Deferred payment) 

• Split payments (Combination of immediate and deferred payments)

Such a variety gives more freedom to sellers and buyers, boosts sales, reduces friction, and improves cash flow. Additionally, well-known FinTech brands can help increase revenue and build client confidence when they are dealing with the new eCommerce platform. PayPal is a good example: according to their 2024 data, enterprises saw a 33% increase in conversion when they displayed PayPal's name at the checkout. 

FinTech opens doors to the global market for B2B eCommerce

Potential expansion to new geographies poses quite a few challenges: cross-border transactions, currency support, adoption of local payment options, and meeting various local regulatory requirements. It is tough to expect the traditional slow banking system to cover all of them efficiently. This is where FinTech comes to the rescue. FinTech solutions are built with the newest technologies, guaranteeing transaction processing within 24 to 48 hours and the most accurate exchange rate. Moreover, they make sure that you are compliant with existing AML (Anti Money Laundering) and KYB (Know Your Business) regulations. Wise Business is one of the FinTechs that gained popularity due to their services in the area of regulatory compliance. According to the information on their site over 300k businesses use Wise Business every quarter of a year. 

FinTechs on eCommerce guard

However, where there is revenue growth there’s always a risk of fraud. According to b2b.mastercard.com global eCommerce fraud is increasing, with losses reaching $41 million in 2022 and predicted to exceed $48 billion in 2023. 

This makes risk management one of the most urgent needs for eCommerce. Some businesses are quite confident in their security systems. However, many fast-growing eCommerce platforms that are eager to build their client base consider strong security and additional verification as a nuisance for new joiners. As a result, these fast-growing platforms are often inclined to have guest checkouts and simplified authorization and business verification processes with a combination of any credit option payments, which can lead to significant exposures. In such cases, it makes sense for the eCommerce platform to delegate risk management to FinTech payment providers with the condition of using their risk assessment services. 

B2B revenue share coming from digital channels will continue to grow. FinTech solutions are one of the key factors that make such growth possible for B2B commerce, by streamlining cross-border payments, assessing risk operations, and providing credit options. In fact, they have already moved eCommerce channels for many companies from a ‘nice-to-have’ category to a ‘mandatory’ one. So, without the presence in eCommerce, it’s possible to stay behind those who already use it.