Recurring Payments Drive B2B Automation
For the B2B industry, payments are at a pivotal point. Business owners not only want seamless, digital payments for their customers but also for themselves. And with automation, merchants have discovered ways to avoid manual steps needed to process payments which reduces stress on their accounting department.
Add in the evolution of subscription-based business where recurring payments serve as a key touchpoint with customers, and these trends have accelerated digitization within the B2B payment landscape.
According to a recent study of payment decision makers in the US, Forrester Consulting released a thought leadership report that revealed the key findings behind this seismic shift.
Pandemic Amplified the Urgency to Modernize Payments
Paper checks became more troublesome due to COVID-19 with a largely remote workforce. A majority (70%) of B2B decision-makers are embracing bank debit cards over paper checks. Almost 85% of survey respondents reported having more than 20 full-time equivalents managing payments.
Administrative costs, manual processes, and slow payment intake pose major challenges to streamlining payments which translates to payment failures that plague the bottom line.
Seamless Transactions Have Pushed Payments Forward
Fortunately for businesses that process recurring payments, having a modernized payment strategy can mitigate the challenges owners face. Payment automation translates into greater payment success and customer retention, globalization and adherence to compliance, and improved operations and optimization of cost and cash flow.
“Businesses have embraced the subscription model because when the checkout process including the payment itself is frictionless, they gain a predictable cash flow and stronger ties with their buyers. The inverse is true too, however. When the payment process is not handled well, businesses lose customers frustrated by the process, incur losses through unpaid purchases, and have higher expenses trying to remedy unsuccessful transactions,” said Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group.
Learn More About B2B Automation:
Contact us online or call 1-800-621-8931.
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