The landscape of online commerce is rapidly evolving, with a focus on enhancing the customer experience through better product data, transparent pricing, and seamless browsing. These hallmarks of consumer-facing online commerce are now making their way into the B2B sector, as trade moves online and platforms become the meeting grounds for buyers and sellers.
One key aspect of this shift is the integration of embedded finance into B2B transactions. Traditionally, B2B payments have been made offline, with a significant portion still relying on paper checks. However, as digital platforms continue to gain traction, the need for streamlined and efficient payment processes has become more apparent. According to “The Treasurer’s Guide to AR Payment Optimization,” a collaboration between PYMNTS Intelligence and CheckAlt, 40% of all B2B payments in the U.S. are still made via check.
The desire for embedded financial services in B2B transactions is driven by the need for improved cash flow and efficiency. Small and medium-sized businesses, in particular, are looking for ways to streamline their payment processes and reduce the reliance on outdated methods. Nearly 83% of smaller businesses have expressed interest in having embedded financial services integrated into the platforms they use.
The digital transformation in B2B commerce is evident in recent developments such as Shoprite’s launch of an eCommerce service for its Cash and Carry stores. This initiative aims to streamline wholesale purchases through a fully automated online shopping system, offering various payment options to cater to different needs. Similarly, Shopify has reported triple-digit gains in B2B-related gross merchandise volume, highlighting the growing market potential for online B2B transactions.
Amazon Business, a leading online B2B procurement store, has also introduced new technology features to simplify the shopping experience for large business customers. The Amazon Business App Center offers integrated shopping, accounting management, expense management, and other tools to streamline the procurement process. Additionally, the platform provides options for generating custom quotes for bulk orders, catering to the specific needs of B2B firms.
The expansion of embedded finance in the B2B space is further exemplified by companies like Comfi and Cybrid, which have secured funding to enhance their B2B payment platforms and introduce new solutions such as buy now, pay later (BNPL) options. These developments underscore the growing importance of embedded finance in facilitating seamless and efficient B2B transactions.
Overall, the shift towards digital platforms and embedded finance in B2B commerce is driven by the need for improved efficiency, transparency, and convenience. As more businesses embrace online transactions, the demand for integrated financial services will continue to grow, reshaping the way B2B payments are conducted and revolutionizing the overall B2B landscape.
