Taking the good of B2C payments and leaving the bad for B2B eCommerce

Taking the good of B2C payments and leaving the bad for B2B eCommerce

With the B2B eCommerce market towering over B2C’s in terms of transaction value — Forrester Research estimates the U.S. market will grow from $889 billion by the end of 2017 to $1.2 trillion by 2021 — the business-to-business payments market is primed for disruption.

Corporate buyers want to make purchases online and pay for goods in ways similar to those used in their personal lives. But the reconciliation, security, payment terms and buyer-supplier relationship do not mean one size fits all for B2B transactions initiated on an eCommerce platform. Add globalization and cross-border transactions into the mix, and the payments landscape quickly grows more complicated.

The payment rail and technology options for B2B eCommerce platforms are vast, and continue to grow. However, for B2B eCommerce platforms to support efficient payments that work for both ends of the transaction, they must balance buyer choice with suppliers’ need for easy reconciliation, says Christophe Bourbier, chairman and co-founder of France-based payments acceptance platform Limonetik.

The company recently announced that it is collaborating with B2B eCommerce platform OroCommerce to facilitate cross-border transactions, streamlining payment collection and reconciliation for online B2B sellers. According to Bourbier, B2B eCommerce platforms and their sellers want to be able to combine traditional and more nuanced payment technologies to meet a global buyer base.

“When you’re a B2B seller, you want to combine the traditional way of being paid — which is ACH for the U.S., SWIFT for international, BACS for Europe and so on,” he told PYMNTS in a recent interview. “But these are complex to reconcile. And you want to combine these traditional forms of payment with new payment technologies like bank cards, and PayPal, and other electronic payments.”

B2B eCommerce platforms, he continued, “don’t want to only do bank cards, and don’t only want to do bank transfers. They want to combine them.”


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