The payments industry has been rather neat and tidy for many years, during which time it was simple to describe the systems, players, roles of those players, and the economics involved. For instance, payment transactions within the B2B industry—especially in the U.S.—typically involved issuance of a check to the vendor, although sometimes wire transfers and ACH networks were used. Unfortunately, this tidy little package has begun to suffer from substantial splintering involving a variety of components.
One of the major changes prominent here is the ability for business customers to place online orders and make a payment through electronic means. The use of these new methods means constant improvements in software for the payments industry. In addition, the major players are expanding both vertically and horizontally into new markets and domains—adding services and capabilities.
Effects of New Technology
The new technology is making major changes within the industry, thus creating the need for new payment systems to facilitate business-to-business transactions with the comfort of the old payments systems, but with the flexibility of modern commerce. The ability for corporates to handle so many of their orders in an online environment necessitates the need for both banks and non-banks (credit card banks, etc.) to maintain up-to-date systems that have the ability and flexibility to handle all of the transactions that flow through B2B networks—and in a way that can adapt to real-time changes in the payment or terms.
While the individual customer is finding it convenient to walk through a store and be able to place an order on his mobile phone, we cannot forget that the typical business may be allotted the same convenience. It is more likely the typical business customer will make use of placing an order and making a payment on a laptop or company computer—in a way that connects the purchase to the rest of the purchase-to-pay systems. This doesn’t mean you won’t find business customers storing information or researching vendors via their mobile devices, but today, they will likely make the purchase from the office.
As B2B commerce continues to grow into e-commerce at an accelerated pace, more customers will demand the flexibility to complete the purchase on the go, no matter where they are—in the office, on the road, or totally mobile. This will put additional requirements on today’s electronic payments providers to connect payments seamlessly to the rest of the corporate purchase to pay systems and the required workflows.
It is with these requirements in mind that Traxpay built its B2B electronic payments platform–bringing faster, safer, smarter B2B transactions to the business community.