There are undeniably many things that are sub-optimal with static B2B payment systems, not to mention keeping pace with global B2B trends and regulations. And that is why Traxpay stands out as a true innovator from traditional B2B payments providers. The Traxpay solution is not static at all – it’s dynamic – and that makes all the difference.
One of the unique features of Traxpay is that users can change any and every element of a payment transaction at any stage of the process, right from the moment a payment instruction is initiated, to the moment of final settlement and clearing. What’s more, Traxpay does it in real-time, and around the clock, 24/7/365.
The ability to be dynamic is what is needed in today’s world of B2B transactions, and, one of the most important factors of such transactions is in the marriage of data and payments. One important form of data is “rules” for payments. What triggers a payment or a partial payment, or when should invoices be combined or split, or how do you handle the many exceptions that come along in the course of a transaction that break the rules? These “exceptions” are ever-present and have to be comprehended by all parties – including the payment provider. Traxpay is unique it is ability to be able to determine which variables change throughout the course of a payment and why – i.e. the who, what, where, when, why, and how of a payment – and is able to affect the payment accordingly, while keeping the entire process synchronized.
Three Major Challenges in B2B that Must be Tackled
1. Regulations: Different governments and jurisdictions across the globe have different rules and regulations of how payment flows are viewed and managed. These fences hold B2B payments back from achieving a satisfactory level of use and global access, and indeed from creating the capabilities for real-time payments between businesses around the world.
2. Technology: So much data that requires deep access and understanding is buried way back in office information systems, be it order-to-cash systems, purchase-to-pay systems, electronic invoicing systems, ERP, or what have you. Today’s advances in technology need to be utilized to gain better access and understanding of these systems across the board.
3. Business Models: In B2C, business models are generally very straightforward; buy the book, get a receipt. Done. Merchant pays a fee for the transaction, and buyers get the convenience or “points”. But in B2B, there are so many variations in supply chains, all of which are governed by different rules and competing business models. In the absence of flexibility, smooth, smart, and fast B2B payments encounter implementation obstacles at the outset. Who pays, how much, and what are the hidden fees or delays and related impacts to cash flow, liquidity, and working capital? These are all considerations.
Innovating The Supply Chain
These are problems that are have held innovation in B2B payments and transactions back. But, be that as it may, B2B payments are nonetheless on the precipice of significant change. The innovations needed to free up cash flow throughout the supply chain have, to date, only really been adopted by the big corporations at the top of the chain. Meanwhile, the lower end has not been able to implement the technological innovations needed to implement the faster, safer, and smarter B2B payments solutions that Traxpay can offer. However, that is precisely why Traxpay’s mission is to push these innovations deeper into the supply chain, so even SMEs can benefit from the same advantages that the top-tier suppliers already enjoy.
If supply chain data can be connected to the financial supply chain, all buyers/suppliers can have real-time access to payments and data. Buyers will push more of their business deeper into the supply chain, and a democratization will take place throughout, benefitting everyone in the space.