If you’re planning to set up a B2B eCommerce channel or aiming to drive growth for an existing site, you should consider the way you accept payments via your site and the impact it can have on your business’ performance.

Innovation in B2B eCommerce payments has enabled more convenient and efficient ways to conduct transactions online. The traditional methods of credit card and bank transfers are still important methods of payment, but modern solutions like PayLater, and mobile/digital wallets represent huge benefits for both merchants and buyers.

Furthermore, the expectations for B2B payments are increasingly influenced by B2C experiences. Today’s B2B buyers seek the same level of options and seamlessness they experience as consumers, making it more important than ever to offer a variety of flexible and convenient payment methods.

In this article, we will explore the different aspects of B2B eCommerce Payments, from traditional methods to modern technology-driven solutions.

What are the most common eCommerce Payment Methods?

B2B eCommerce Payments have come a long way. In the past, businesses relied on traditional methods such as cheques and bank transfers to collect payments. With advances in technology, businesses started to embrace electronic payment solutions, such as credit cards and online payment gateways. These options allowed for faster, more secure transactions, and provided businesses with better control over their finances. 

Traditional Payment Methods

Credit & Debit Cards

Credit cards are one of the most popular ecommerce payment methods. They allow buyers to pay at online checkouts using a line of credit from a provider. Major credit card brands, such as Visa, Mastercard & American Express are widely accepted worldwide. 

Bank Transfers

Bank Transfers let buyers send money straight from their bank accounts to the bank account of the merchant either via their mobile banking app or online banking. Bank transfers are typically used for high value purchases. Merchants will typically issue invoices with payment details, including bank account information & payment terms. The buyer will then send payment according to those details.

Direct Debit

Direct Debit is a payment method used in eCommerce where funds are automatically withdrawn from a customer’s bank account. Direct Debit is particularly suited for recurring payments, such as subscriptions or regular bills, because of its set-and-forget convenience. It reduces the risk of missed payments and can enhance customer retention, making it a reliable choice for both businesses and consumers in the ecommerce landscape.

Cash on Delivery

Cash on Delivery allows customers to pay for goods at the time of delivery, not in advance. This option allows inspection of items before payment, enhancing trust, especially in regions with low credit card usage. COD boosts buyer confidence but can complicate logistics for sellers. Cash on delivery is not a widely used method in the UK but is quite common in the Middle East and Asia.

Non-Traditional Payment Methods

PayLater 

PayLater (or buy now, pay later) options have exploded in popularity in the B2C world. You’ll likely be familiar with providers like Klarna… but the benefits of PayLater are now attainable in the B2B context too. PayLater enables buyers to receive goods and services and pay for them later, while the seller receives the funds upfront from the PayLater priovider.

Digital Wallet e.g. PayPal, Apple Pay

With the widespread adoption of smartphones and digital wallets, buyers now have the flexibility to make payments on the go, anytime and anywhere. Digital wallets usage is growing significantly. With many businesses expecting this growth to continue, digital wallet payment options are becoming offered more widely.
‍

Key Considerations When Choosing How to Accept eCommerce Payments

When considering your B2B ecommerce payment strategy you’ll first need to decide which payment options to offer, then which payment providers will be suitable. Here are several key factors to consider.

Buyer Preferences

The way your buyers want to pay should be at the forefront of your decisions. Different buyers will have different preferences so you’ll want to consider offering a range of payment methods. 

For example; for lower value one-off purchases, it’s likely buyers will look for credit cards or digital wallets options which are built for simple, easy transactions. Whereas if buyers want to spread the cost to enable higher value purchases then PayLater is a suitable option. Conduct research into your buyer preferences to identify the options that will satisfy their needs.

The Checkout Experience

The checkout experience can make or break a transaction. You’ll want to provide a seamless experience that is secure but frictionless. Which payment options you present & how you present them will be highly influential on your buyers’ perception of your brand. Consider the checkout flow when reviewing payment partners to add to your tech stack.

International Payments

Cross-border payments can add complexity to eCommerce payments. International transactions can be subject to different regulations and currencies. You’ll want to compare how different payment providers deal with international B2B payments.

Adding to this complexity, your target market may have diverse expectations in terms of payment methods. Build an understanding into your target market's behaviour and need to identify the required payment options for each location.

Security

One significant challenge is the security of online transactions. B2B transactions often involve substantial amounts of money, making them attractive targets for fraudsters. Businesses need to implement robust security measures to protect their payment systems and customer information.

Look for these key features:

• Buyer Authentication
• PCI Compliant
• Tokenization
• Encryption

Transaction Value & Volume

The suitability of payment methods in B2B ecommerce often hinges on the transaction value and volume. For instance, credit cards are favoured for their convenience in low-value transactions, direct debits are better suited for high-volume, recurring payments. 

Conversely, PayLater (or B2B BNPL) is ideal for buyers seeking instalment-based payments for larger purchases. For high value transactions, B2B buyers will typically expect flexible payment terms and the ability to set up trade accounts to manage their payments.

Speed

The speed of transactions is a crucial factor in B2B eCommerce, significantly impacting buyer satisfaction and operational efficiency. For some B2B merchants, having confirmation of funds upfront is often essential. In those cases, payment methods must be fast and reliable, and options such as direct debits where the merchants receives funds later may not be appropriate. PayLater solutions provide a unique advantage by ensuring merchants receive funds immediately while allowing buyers to defer payments. Choosing payment providers that offer real-time processing and instant payment confirmation can minimise delays, enhance cash flow, and ensure a seamless transaction experience.

Integrating Payment Solutions in B2B eCommerce

Once you’re clear on the payment methods your business will offer, you’ll need to find a provider that is able to integrate with your current systems.

Direct API Integration

In this method, you integrate a payment gateway's API directly into your ecommerce platform. It provides complete control over the payment process, allowing for a more seamless buyer experience and increased customisation. Note: Direct API requires a longer integration process & the use of development resources.

Hosted Payments Page

Hosted payment pages outsource the payment process to a third-party service. Typically, the buyer is redirected to a site hosted by the payment service provider to begin the transaction before being routed back to the merchant to complete the order. This decreases the merchant's security load and streamlines compliance, but may result in a less cohesive user experience.

eCommerce Plugins

Plugins are pre-built software components that interface seamlessly with popular ecommerce systems such as Shopify and Magento. They strike a mix between usability and customisation, allowing organisations to integrate payment features rapidly without substantial code. This strategy is great for merchants seeking a simple, cost-effective solution.

Offer PayLater with Kriya.

Give buyers the choice to pay on their own terms and provide a frictionless checkout experience with Kriya Paylater. We handle the transaction from end-to-end, with a frictionless buyer journey.

• One solution for both online and offline transactions
• Instant buyer authentication & spending limits set
• Flexible payment terms
• Kriya pays you in full on delivery of order
• Kriya takes on the risk & handles payment collection
  
  

‍‍

PayLater is driving real growth for our merchants:

• 40% Buyer Adoption
• 2x Likelihood of repeat orders
• 45% Revenue Growth
• 4x Increase in acquisition of new buyers

‍

Talk to our team today to find out more about how we can help you