How does B2B payment work in e-commerce ?
In France, B2B e-commerce represents nearly 700 billion¹ euros in turnover.
B2B e-commerce must be accompanied by a simple and fast payment experience. Professionals today expect the same level of quality and seamlessness as in the B2C market.
The expectations of client companies
Businesses are looking for a clear payment process that aligns with their internal processes. Easy access, seamless validation, and complete transaction visibility make the work of operational teams easier.
The first step is to identify each of the customer pain points, and to propose adjustments to improve their purchasing journey.
Constraints related to high amounts and B2B payment deadlines
B2B transaction amounts are often high, requiring suitable means that are not subject to card limits.
The approval process can involve multiple stakeholders and lengthen the purchasing cycle.
Payment deadlines also influence cash management and require tools capable of ensuring accurate monitoring.
How do you currently manage these constraints in your online business ? What B2B payment methods are best suited to your customers ? These are questions you should ask yourself to improve the quality of your services.
Importance of safety and compliance
Every B2B payment requires a high level of protection. Certain aspects are regulated at the French and European levels (strong authentication, payment collection on behalf of third parties, GDPR, etc.). In parallel, systems for detecting, protecting, and tracking data strengthen trust and facilitate internal controls.
Does your B2B payment process already meet these requirements?
The different B2B payment methods
In the B2B sector, payment requirements may differ from those of B2C transactions. The amounts involved are higher, multiple validations are required, and settlement times are longer.
Appropriate payment methods help to secure transactions, simplify financial management and improve the experience for business customers.
Traditional B2B e-commerce payment methods
Bank transfer
Bank transfer is the most commonly used payment method for professionals due to its reliability and security. It offers several tangible advantages for businesses.
SEPA transfers, often free of charge, represent a significant financial advantage by reducing transaction costs. For e-commerce businesses, instant transfers offer an effective solution for accelerating payments, reducing settlement times, and improving cash flow management.
This payment method also helps to limit the risk of non-payment, to maintain complete traceability of transactions and to facilitate accounting, making it a particularly suitable choice for the specific needs of B2B.
SEPA Direct Debit
SEPA Direct Debit, also known as SDD Direct Debit, allows funds to be automatically debited from the customer’s bank account. It is an ideal solution for recurring payments, such as subscriptions or regular services.
It is possible to set up a secure space dedicated to each customer, allowing them to easily authorize withdrawals and manage their authorizations with complete confidence.
This payment method simplifies cash management, reduces the risk of forgetting or delaying payments, and improves the customer experience within a B2B journey.
Factoring
Specific to B2B payments, factoring involves assigning a receivable to a specialized company, called a factor, in order to obtain quick financing. The factor “buys” the receivable and then takes care of collecting the invoice from your client.
This payment method allows businesses to improve their cash flow and reduce their working capital requirements. However, factoring involves fees that can reduce your margins, which should be considered in your financial strategy.
Initiating payment by bank transfer
The initiated transfer, also called payment initiation (PIS), allows the company to trigger a transfer in the customer’s banking space, which the customer will only have to verify and validate.
This payment method accelerates settlements, reduces delays, and improves cash flow management for businesses. It also ensures complete traceability and simplifies accounting, while guaranteeing the security of each transaction through bank authentication.
Tailored to the needs of professionals, the initiated transfer combines reliability, speed and payment control.
The bank card
Bank cards remain the preferred method for online purchases, although they are generally better suited to B2C.
It is particularly well-suited to both physical and online retail thanks to its simplicity and speed. Strong 3D Secure authentication has also significantly reduced the risk of fraud in e-commerce.
In B2B, however, bank cards have two significant limitations. They can be costly for the merchant, with substantial fees, and they are often subject to spending limits, which are restrictive for high-value business transactions.
Modern B2B e-commerce payment methods
Payment in installments
Installment payments are essential in e-commerce and B2B. They allow business customers to spread out their expenses while preserving their cash flow.
2 installment payment models:
- Buy Now Pay Later (BNPL) allows customers to pay for their purchases in installments (often with fees), through a specialized provider.
- Standard installment payments allow the merchant to divide the amount of an order or invoice into several installments, and to automatically debit the customer on the agreed dates.
Whichever model you choose, it’s advantageous because it offers your customers greater flexibility. This payment method helps streamline the purchasing process.
The deposit
A deposit is a common payment method in B2B, particularly useful when the amounts involved are high or the service is spread over a period of time. It secures the transaction from the moment the order is placed, while also firmly committing the client.
Offering online deposit payments simplifies the business relationship. You secure a portion of the revenue before delivery, reduce the risk of last-minute cancellations, and improve cash flow visibility. For your customers, this system offers greater flexibility and facilitates internal expense approval.
CentralPay, a payment solution for professionals
The evolution of payment methods and the digitalization of purchases are forcing e-commerce sites to constantly adapt their payment solutions.
CentralPay supports this transition by offering modern, secure and flexible tools to meet the new needs of businesses and their customers.
¹ Xerfi analysis
