The realm of payment technology is undergoing visible transformations, prompting businesses to adapt accordingly. In the United States, companies are bidding farewell to physical storefronts and embracing digital stores and online shopping. Automation and artificial intelligence are also rapidly gaining traction among businesses nationwide. However, amidst these trends, business-to-business (B2B) payment methods have faced challenges in keeping up.
B2B transactions involve recurring or one-time deals between two companies, such as manufacturers, distributors, wholesalers, and retailers. These transactions often involve bulk purchases and can be more intricate and costly compared to typical customer-to-business (C2B) transactions. The efficiency of a B2B deal depends on various factors, including purchase volume, transaction history, and the buyer-seller relationship.
While paper-based payments still serve a purpose and continue to play a crucial role in daily business dealings, their prominence is diminishing rapidly. Both B2B buyers and suppliers seek to streamline their transaction processes and ensure timely payments as they transition into the digital era of business.
Following the COVID-19 pandemic, 68% of small businesses have taken steps towards adopting an all-digital system, leaving behind cash and checks. It is projected that by 2025, 80% of B2B transactions could be conducted digitally. Currently, 45% of transactions still rely on manual processes, but this percentage is steadily declining.
For comprehensive insights into B2B payment methods and emerging trends, please refer to the accompanying resource provided by CardConnect.
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