Chargement...

Open banking, BNPL, Pay-by-link… New B2B payment experiences to keep an eye on

28 July 2022

Business Insight

While the success of a B2B marketplace depends on several factors, the payment experience is crucial. What works in B2C is not necessarily duplicable in B2B: the expectations of professional buyers require specific payment methods and services. In B2B, for example, the amounts are generally higher, while payment on time will often be preferred. To offer an optimal buyer experience, your B2B platform should be based on the best payment technologies. Open banking, Buy Now, Pay Later, Pay-by-link… Let’s look at the latest trends in the payment experience!

Open banking: a leading innovation for B2B payments

The principle of open banking

Open banking” means that banks can share their customers’ banking data with companies.

In the context of a B2B payment, this new payment experience is designed to optimise the capacities of your marketplace. This fintech innovation facilitates bank payments. It is also advantageous for SMEs if this system works with large companies.

Open banking allows you to :

  • Easier access to transaction data
  • Access to new products
  • Compare accounts

While permitting a third party to access one’s bank details may be off-putting to some, this innovation has several advantages.

 

The advantages of an open banking transfer

By carrying out an open banking operation, you benefit from all the advantages offered by the classic bank transfer system:

  • A fast, even instantaneous transaction
  • A secure payment method
  • An irrevocable transaction, which adds extra security for the seller
  • Digital traceability of all transfer operations

Bank transfers have certain disadvantages, such as the obligation to enter an IBAN, with the risk of input errors and slow updating of accounting information. Open banking corrects these shortcomings by offering :

  • One interface for all input and transfer operations
  • A pre-filled IBAN that avoids data entry errors and makes the transaction more fluid
  • Instant matching of the business bank statement and the accounting book on the same interface

 

Transfer in Open Banking: what are the use cases?

The Open Banking transfer offers a better payment experience by creating a smooth payment process. Open Banking eliminates the final breakpoints that previously required manual intervention, opening the door to instant transfers on time and payment by split transfers. Finally, for companies wishing to improve their cash flow visibility, Open Banking allows for request-to-pay. In this case, the creditor company can request payment from its debtor.

 

Pay-by-link: one-click payment for small purchases

The pay-by-link principle

The pay-by-link, as the name suggests, involves payment via a link. When paying by card, a secure link is sent to the buyer. This makes the payment process much easier and allows the buyer to avoid wasting time on low-value orders.

In B2B, this payment method is not only used by small craftsmen. Some platforms see it as an opportunity to improve customer relations by offering a secure, fast, and reliable system. Just look at the advantages.

 

The advantages of a pay-by-link payment

With pay-by-link, B2B platforms offer a new, convenient, and secure payment experience to their buyers:

  • A simple, fast, and reliable payment process that significantly improves customer confidence
  • Through a payment system that is open to the international market. The pay-by-link adapts to your customers abroad by automatically converting your price into the local currency

Like open banking, this other payment system allows you to monitor the status of your transactions online.

 

Examples of pay-by-link usage

The pay-by-link has proven itself in many business areas and is convincing due to its reliability.

It is found in the chatbots of online sales sites. They automatically send the payment link to the customer once the item has been selected. But also, reminder e-mails proposing to customers who have “forgotten” their basket to pay directly via a link.

As a trader, you can use this system to :

  • Engage your customers on a booking by making them pay part of the amount due
  • Maximise your sales by ensuring fast payment anywhere, anytime

 

Request to Pay: a new payment request system

As a complement to credit transfers or instant payments, request to pay (RTP) is a new pan-European standard for payment initiation. A message exchange service, like Swift, means payment can be requested. Coming into force in the summer of 2021, the request to pay has several advantages:

  • Avoid merchants going through interbank networks that charge a commission on each transaction.
  • Reduce transaction rejection rates related to card limits.
  • Shorten payment times. By facilitating the dunning process, the RTP allows you to be paid more quickly and your cash flow to improve.
  • Facilitate accounting reconciliation. The RTP allows companies to include the invoice reference in the message.

 

BNPL: Buy now, pay later!

The principle of the BNPL

Buy Now Pay Later” is a payment instalment scheme for buyers. It offers all the advantages of traditional consumer credit without the disadvantages.

BNPL is already used by many online retailers in a B2C relationship. Offering this payment solution for your B2B marketplace can significantly improve your customer relationship.

 

The advantages of a BNPL payment

This form of credit allows you to :

  • Attracting and retaining your customers
  • Increase your sales

The BNPL is particularly attractive to small and medium-sized enterprises, which see it as a cost-effective way to develop their business. It also offers a positive buying experience through its fast credit processing and multiple payment options.

 

The use of BNPL for B2B

While BNPL has been specific to B2C for many years, making it a new payment solution for your B2B marketplace is now possible.

However, this model must be adaptable to your marketing strategy. What works for private buyers may not always work for professional buyers. There are several points to consider:

  • A KYC / KYB process adapted to the nature of your client
  • A cost of BNPL adapted to the margin rate imposed on the activity
  • Consideration of the customer’s means of payment

 

To minimise the risks of deploying BNPL in your marketplace, you must review your business strategy and adapt it to future market developments.

This is where Lemonway, the payment service provider, can help you optimise the payment methods of your marketplace. Do you want to simplify your customers’ purchases while securing your sales? Are you looking for payment methods adapted to the habits of your targets? Find answers to your questions. Contact us now!