First B2C and now B2B: The Shift to Digital is Consolidating

New findings from research giants such as Deloitte and PwC reveal the scope of the digital financial revolution, with customer expectation (rather than merely customer preference) driving this shift away from cash for good. And it’s not just consumer payments fuelling the digital revolution, but B2B as well. Unlike B2C however, the B2B digital payments ecosphere is a largely untapped market that is wide open to disruption. 

In the post-Covid new normal, changes to consumer payment preferences are here to stay. Experts agree that there is no indication that consumers want to return to cash, rather, they prefer the speed, convenience and ease that digital payments offer.  

“Global cashless payment volumes are set to double from 2020 to 2025, to almost 1.9 trillion transactions, and to almost triple by 2030, due to the changes brought by the pandemic”. PwC, June 2021

“The shift to digital is consolidating.” Deloitte, May 2021

“[Consumers’] increasingly high expectations have been a driving force for the rapid technology advances behind embedded finance, as banks and retailers alike scramble to stay relevant and keep up with finance innovations.” Retail Sector, June 2021

And consumers aren’t the only ones joining the digital banking revolution. Despite a significant shift away from cash over the past few years in consumer payments, the B2B world has largely been languishing in the dark ages of manual processes and paper trails. 

B2B payments: a market open to disruption

In 2019, a shocking 49 per cent of UK businesses used cheques to pay a supplier, according to Statista. Corporate bank accounts have traditionally required documents signed in-person, and fast-fixes required to change this since the onset of the pandemic have been clunky and far from the seamless and integrated solutions being rolled out in consumer banking.

All this equates to a market wide open to disruption. In 2022, as businesses race to move to digital payments, and with few, if any truly attractive solutions in existence, a significant and lucrative gap exists.

“Fintechs have a critical role to play here, helping accelerate innovation in business payments and at the pace that is needed,” Finextra reported earlier this year. 

“A lesson the pandemic drove home with great force is that B2B payments… badly need consumerisation, as the same vendor waiting for your check to arrive in the mail just got a near-instant cloud-based payment from a more tech-savvy customer. Guess which type the vendor prefers,” professed proprietary data and research-driven news site Pymnts just months ago.

Simple, end-to-end solutions under one brand

We’re confident that there’s a need to shake up the status quo. Our offering brings together previously siloed banking elements like fraud and regulatory requirements under one brand. The result? A one-stop-shop for corporates looking for fast, easy, efficient and safe financial services that equals:

• More efficient operations. Automation means processes are actioned faster and more accurately. As a result, resources and talent can be diverted away from manual intervention and into other areas. In 2018, Goldman Sachs predicted that B2B digital payment solutions will create a $1.5 trillion uplift in productivity among small businesses globally, a figure that would be higher in 2022.

• Intelligence and insight. Digital processes mean being able to identify trends in making and receiving outbound payments, customer preferences and more. Greater insight means better decision-making that is more likely to have successful outcomes. We value simplicity, though, so our interfaces are easy-to-read and interpret and our solutions can be seamlessly integrated, requiring no additional resources.

• Better customer service and relationships. We know customers not only prefer, but have come to expect digital payments. Beyond that, digital banking solutions that offer the type integration that smooths a customers payment journey and reduces their click-to-purchase will set merchants apart, allowing them to capture and retain market share in increasingly competitive times. 

• Fast and secure cross-border payments. Cross-border sales are booming, with B2B buyers widening their search thanks to advances in e-commerce. The total B2B cross-border payments market size is estimated to reach around $63,084 billion by 2026, and digitalising means businesses are able to capitalise on this market. But moving money globally is notoriously slow and expensive. Our real-time payment solutions help businesses to collect funds faster and reduce payment processing fees, while our e-wallet and alternative payment methods are attractive to consumers because of their ease of use and convenience. 

At Techcap we are excited by current market conditions as they align with strong demand for the type of solutions we offer across both the B2C and B2B payment ecosystems. Want to find out more? Contact us and you could be weeks away from a seamless digital integration that will benefit you and your customers.