Back in 2004, checks and manual payment processing represented 81% of all B2B payments. But last year, this dominance fell by 30%, while the demand for online payment methods continued to rise. This trend was confirmed by a recent survey conducted by Traxpay to nearly 300 B2B companies across the globe, which also revealed some B2B e-commerce trends that we are likely to see in 2014.
Along with finance professionals like treasurers, cash managers, A/P and A/R personnel, and payment consultants, researchers and editors in the financial markets took part in this survey from locations as diverse as the U.S., Germany, the Philippines, Ukraine, and India.
As stated in the outset, checks have lost their dominance in the B2B e-commerce. 0% of B2B buyers and only 3% of sellers selected checks as their preferred method of payment. The trend was towards electronic payments (84% of both buyers and sellers), and 76% of customers stated that they had no problems paying online if purchases were made directly on the website. In addition, more than 60% of both buyers and vendors considered integration into the vendor’s website and checkout as ‘must have features’ for a B2B online payment service.
It was also interesting to note that fraud was not the biggest concern of either the buyers nor the sellers. Buyers (42%) indicated that ‘goods not delivered as advertised’ as their biggest concern, and that they would be more confident to purchase online if there was ‘buyer protection’ included. For online sellers, the biggest concern raised by 73% of those surveyed was the high transaction fees for electronic payments provided by traditional credit cards and PayPal. But that is not to say that security was not an issue at all. 50% of the buyers and 42% of sellers were willing to pay for a secure escrow service that covered all purchases and guaranteed payment at the same time.
Another noteworthy result was that 58% of B2B sellers currently don’t have an e-commerce website from which customers can make purchases directly. 13% declared that their e-commerce website was under development, but that still leaves out a significant chunk of vendors who are lagging the demand for doing business online. Given 30%+ expected annual growth in the B2B e-commerce segment over the next three years, we are likely to witness a greater number of B2B e-commerce websites cropping up in 2014.
As you look to build out your B2B e-commerce platform or add electronic payments to make it easier for customers to buy, Traxpay can help you drive new revenue streams, accelerate cash flow, and protect both buyers and sellers in the transaction. Traxpay brings faster, safer, smarter transactions to B2B, and is simply the best way to pay and be paid.