The importance of a thoughtful payment strategy for B2B marketplaces

In the world of business-to-business (B2B) marketplaces, success hinges on multiple factors. From creating a seamless user experience to ensuring reliable supply chains, every part plays a role.

A frequently underestimated component, often left until the last moment, is the payment journey. While it may seem convenient to sideline payment considerations, it's clear that a comprehensive payment strategy isn't merely an add-on—it's foundational to success. In this context, we explore the significance of a meticulous payment strategy and how to choose the right payment providers for B2B marketplace success.

Placing payments at the forefront

A common trend in B2B marketplaces has been to leave payment considerations as an afterthought. Many marketplace operators focus their energies on other aspects of the platform's functionality, only to grapple with the complexities of payments when they are at the moment of commercialization. This approach can be detrimental.

All marketplaces intend to thrive and attract the right customers, and to do so they need to proactively address payment methods. Waiting until the end to consider how funds will flow in and out of the platform can lead to a number of hurdles. If a marketplace fails to provide the payment options that a user expects, this can slow new customer acquisition and deter potential buyers.

Creating the right solutions from the outset is crucial for success. By integrating payment considerations into the core strategy, B2B marketplaces ensure they are well-equipped to handle financial transactions efficiently, securely, and in a way that meets customer expectations.

Key considerations for your payment provider

When selecting a payment provider for a B2B marketplace, it's important to look at several key factors to ensure the platform serves the needs of both sellers and buyers seamlessly. These considerations pave the way for a successful payment ecosystem:

1. Payment Methods Diversity: A payment provider should offer a wide array of payment methods to accommodate the preferences of a diverse range of buyers and sellers.
2. Seamless and Secure Processing: The payment provider should adhere to strict compliance standards, facilitate cross-border transactions, and implement robust fraud prevention and management protocols.
3. Seller Onboarding and Verification: Simplifying the onboarding process for sellers while maintaining stringent verification measures ensures a trustworthy marketplace environment.
4. Modularity and Flexibility: Customizable payment solutions are essential for catering to the unique requirements of various marketplaces. The payment infrastructure should be adaptable to accommodate changing needs.
5. Scalability: As a marketplace grows, the payment provider should support the need and methods required for growth.
6. Growth via partnerships: Establish connections with buyers and sellers around the world, all the while creating seamless local experiences.

Picking a payment provider with modular and flexible solutions

Key to an effective payment strategy is choosing a payment provider that offers a modular and flexible solution. An adaptable provider seamlessly integrates with other providers and technologies, allowing marketplaces to grow, adapt, and scale. This modularity empowers marketplaces to innovate and pivot without the constraints of a rigid payment infrastructure. Mangopay offers all of this and supports diverse payment methods and evolving marketplace needs, underpinning sustained growth and ensuring a seamless payment experience for all involved.

Unlocking the power of payment terms

One of the most potent tools in a B2B marketplace's arsenal is to offer a diverse range of payment methods to meet the needs of their buyers. This approach aligns with the digital transformation sweeping through B2B trade and the increasing expectations of buyers. Approximately 60% of B2B trade currently transpires on credit terms, underlining the significance of this offering. In an era where B2B buyers are demanding a purchasing journey akin to the B2C experience, enabling credit purchases on various channels has become paramount.

For buyers using B2B marketplaces, flexible payment terms offer a range of benefits. Firstly, they lead to a better purchasing experience. When payment terms are seamless and flexible, it creates a frictionless buying journey, which, in turn, fosters customer loyalty and encourages repeat business. Secondly, the availability of extended payment options allow buyers to effectively manage their cash flows, making larger purchases more feasible and accommodating various budgeting strategies. Lastly, embracing smooth payment terms can lead to an increased purchase rate among potential buyers. Even on the first transaction, the ability to make purchases on credit terms provides a sense of financial flexibility that resonates with buyers, ultimately resulting in higher rates of sales.

Having worked closely with our partners we’ve also seen the proof that the marketplace itself stands to gain significantly from a payment strategy that embraces payment terms. This benefit extends to both sellers and buyers participating in the marketplace. Favorable payment terms help alleviate cash flow pressures, providing financial stability that enables smoother operations.

A great payment strategy isn't just important for a successful B2B marketplace – it's the solid foundation that supports growth, reputation, and helps you exceed customer expectations. At Mangopay we align with your unique needs to focus on building a payment strategy that works for you now and in the future.

To find out more about how Mangopay can help you select and connect the products you need to succeed, get in touch with us.