The Massive Opportunity in B2B Payments, 3 illustrative companies

B2B payments have been known to be inefficient and expensive process. Customers believe that there is an immense need for streamlining of settlement and reconciliation of business commerce. The current challenges are poor working capital optimization, zero cash visibility and friction in buyer-supplier relations. New innovative services are coming up by companies looking to tap into the $250 billion B2B payments market.

Case Scenarios:

CheckSpace Inc. released an E-payments platform oriented towards small businesses. CheckSpace has integrated its offerings with the financial systems being used by the small businesses. This allows business customers to draft electronic checks and create reports in accounting software. The service charges 95 cents per transaction thus being a cost effective solution. The service keeps the financial institutions into picture by directly adding or deducting transactions into respective accounts.

AribaPay is a cloud based B2B payments solution unveiled by Ariba, a SAP company and Discover Financial Services. It has a ‘track & trace’ element giving a real time view of payment status. It allows full integration of ordering, billing and settlement processes between buyers and sellers. Early closing of procure-to-pay loop from buyer to supplier party is made possible using AribaPay. The cloud-based service combines the insights and applications embedded in the Ariba Network and deliver them through a secure payment infrastructure.

Basware tied-up with MasterCard to create e-payment service enabled by Basware commerce network connected to MasterCard global payment network. The service optimizes purchase-to-pay and order-to-cash purchases by integrating with existing ERP and accounting systems of involved parties. For buyers, this reduces supplier risk through improved supplier cash-flow confidence. For supplier, this facilitates improved visibility in tracking outstanding invoices.

Conclusion:

Enterprises big and small need such solutions. The benefits that enterprises can get with such solutions are:

Efficiency gains through paperless transactions Efficient risk management and cost control Optimization in payment timings Real time collaboration among business partners

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