Mark Harrison, Founder & CEO, Callisto Grand
Sam Dhingra, Director Solution Engineering, HighRadius
Buying and Implementing Technology for Treasury Professionals
The survival strategy for most mid-sized businesses in the current climate is to prioritize cash flow management and strategize on the cost-cutting front. With the growing need to deal with time-consuming, costly, fraud, and error-prone traditional paper-based payments, SMBs earning less than $10 million per year are more interested in real-time payments to deal with cash flow concerns as per Mastercard. Let’s explore the advancing opportunities in the field of B2B payments in mid-sized businesses.
The rise of digital payments comes with the potential to curb the challenges of traditional paper-based payment processing while managing regulatory, compliance, and cost-based challenges. According to a study by Mastercard, 76% of SMEs across North America has said that the global pandemic scenario has prompted them to be digitally equipped.
Here are some emerging digital payment methods that come with reduced operational risks and faster payment processing.
With the goal of increased economic savings and simplified payment processing, digitization has guaranteed improved profitability and productivity. According to The Hackett Group, 2018, electronic invoice payment processes cost 60% less on average as compared to the traditional paper-based process. Digital payment methods come with reduced processing time with faster payment reconciliation that has a significant impact on the overall cash flow.
The growth in the B2B payment ecosystem has been driven by digital innovations within the industry with evolving marketplace demand and changing market infrastructure. Digitized marketplaces have proven to be very appealing to different manufacturers across industries, wholesalers, and even distributors.
In today’s fast-paced world, customers want better speed and convenience when it comes to B2B payments. With demands for fast, accessible, and real-time payment methods – customers are on the lookout for better control over their finances with a wide range of available payment methods as per their requirements.
Digitization has also prompted businesses to cultivate new partnerships when it comes to handling the security risks involved in payment processing. Mid-sized businesses have a wide variety of third-party solutions to collaborate with that provide safe financing integration into their own payment systems.
In order to strategize a successful plan for streamlined payment processing, it’s essential to determine the overall cost impact and benefits of different payment methods in place. Let’s go over some crude challenges faced by mid-sized businesses due to traditional B2B payment methods and the counterpart benefits of leveraging digital payment methods.
Let’s see how the adaptability of digital payment methods help in taking better cash management and working capital decisions.
The B2B payment landscape has witnessed a steady increase in the adoption of digital payment methods. Mid-sized businesses can capitalize on the growing B2B payment trends by evaluating the cost-benefit and operational efficiency of different payment methods in place. In the ever-growing environment of digital transformation, businesses can benefit from faster payments, improved cash flow, and working capital. Learn more about emerging digital payment methods that provide opportunities to improve cash flow and make a positive impact on working capital.
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