B2B Payment Solutions; Top 7 Factors to Consider before Choosing a Business Payments Solution
The B2B sector in Nigeria, Africa, and the world at large has experienced significant growth over the years. With this growth of B2B product and service providers came an increase in the number of B2B payment solutions.
According to Forrester, Business to Business eCommerce transactions in the US alone are expected to reach $1.8 trillion by 2023.
Similar growth is observed in all countries of the world.
How We Made it in Africa pointed out that the business to business market in Africa is expected to show $1 trillion growth by 2025.
Furthermore, A Harvard Business Review report highlights that B2B business spending in Africa will rise from $2.6 trillion in 2015 to $3.5 trillion by 2025.
Mckinsey reports also show that B2B spending activity is expected to experience an incredible expansion rate of about 50% in the years leading to 2025.
All these statistics point to the fact that the African B2B sector is fast-growing and to be a critical part of this growth, businesses need to adopt scalable, robust, and reliable B2B payment solutions for their brands.
Although there are different types of business to business payment solutions with different levels of technology, support, and pricing, making the wrong choice can be the beginning of your business failure.
To help you choose the right B2B payment solutions for your business, we put together some factors you should consider when choosing a business payments solution.
Knowing this will help you navigate the complex B2B payment landscape, make an informed decision, and partner with a trusted, robust and scalable payment solutions provider that’ll grow with your business.
Factors to Consider before Choosing a Business Payments Solution
Complexity of Payment Solution
You want to consider the complexity of the payment solution both on your side and that of your potential clients.
The payment solution might not be ideal for you if it’s difficult for you to set up or navigate.
This is a financial situation, so great effort should be made to ensure no mistakes are made because mistakes can cost you thousands to millions.
Even if you’re not tech-savvy, leading payment solutions like Fincra are simple enough to set up and navigate.
A significant number of your clients are likely to abandon the transaction if they experience any difficulties or see your payment solution system as untrustworthy.
Statistics show that 27% of transactions were dropped because the checkout process was too complex.
Save yourself the stress, go for simple b2b payment solutions.
The Solution’s Payment Float
Payment float means payments that are yet to clear as they are transferred from one point (buyer) to another (seller).
Before now, through other payment channels like bank transfers, checks, credit, or debit cards, the payment float can last as much as weeks and months.
However, with digital payment solutions like Fincra, payments can occur much faster in as little as a twinkle of an eye.
You sure want a b2b payment solution that has a short payment float so you can move on with the next transaction.
Payment Solution Limitations
This article won’t be complete if we don’t mention limitations. It’s crucial you consider payment solutions limitations while choosing b2b payment solutions.
Limitations can be in the form of;
- Amount to be handled
- Number of transactions
- And many others
Mind you, this may not be much of a concern when your business is still starting, but as your business grows, limitations can be frustrating and can slow your growth.
Think on the long-term.
Go for solutions with fewer limitations. That way, you can grow with your payment solutions gateway provider and scale your business internationally faster.
Technology is evolving and any business that doesn’t adapt is left behind.
Working with a payment solution provider that uses already-outdated technology will come back to haunt your business.
Look out for payment solution companies that update regularly and expand their reach in terms of data security, product-to-product interfacing, devices, and overall technology integration.
Payment Solution’s Cost, Fees, and Hidden Charges
A lot of SaaS companies charge hidden fees that the user might not be aware of at the time of adopting the product.
This can cause frictions in the long run.
The payments space is filled with unethical billing practices and this is something you should look out for while choosing a payment solution for your B2B.
Some providers’ terms and conditions are confusing and have no consistent billing statements and transparent calculations that show a breakdown of their fees.
When this is not tackled from the beginning, you may find yourself entangled in a web of hidden charges you don’t understand.
This is not healthy for your business as you may accumulate large amounts in the long run.
Take your time to go through these product charges to ensure you’re comfortable with them before adopting any B2B payment solution for your business.
Data and Information Security
Security is a key concern when you’re dealing with the exchange of funds.
With the high rate of internet fraud out there, you can never be too careful with securing your payment solutions.
Data and information security isn’t just an option.
It’s a must for both you and your provider!
To ensure that there is a little security risk, be certain that your payment solutions provider provides data encryption. Besides data encryption, ensure that the company meets all the necessary security requirements for its industry and the payment types involved.
Furthermore, make sure the company stays updated with the latest security infrastructures available.
Customer Service and Support
In today’s world, customer support is more of a right than a luxury.
Besides, the nature of the industry demands you get solutions as fast as you need them.
This makes it important that you work with a b2b payment solutions platform that offers 24/7 customer support to their clients.
Excellent customer service and support can never be estimated and for you, it should mean;
- Getting answers when you need them.
- Getting insights and details.
- Getting 24/7 support via email, live chat, or call.
- Troubleshooting your technical questions as soon as they come up.
Not having reliable support helping you resolve your technical issues can cause payment friction, and consequently jeopardize your relationship with your customers.
Do your business a favor and work with a b2b payment platform that offers reliable customer support and excellent customer service.
In conclusion, your payment solutions provider can play a critical role in how successful your business becomes.
As the African b2b market continues to grow, working with the right B2B payment solutions provider will ensure whether you stay ahead in the industry or not.
With Fincra, a cross border b2b payment solution provider, you enjoy a seamless way to accept payments from clients in and out of your country.