The importance of a thoughtful payment strategy for B2B platforms
In the world of B2B platforms, success depends on several factors. Providing an easy-to-use experience and having dependable supply chains are just a few of the important aspects that make a difference.
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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 platform success.
Placing payments at the forefront
A common trend in B2B platforms has been to leave payment considerations as an afterthought. Many 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.
All platforms intend to thrive and attract the right customers, and to do so, they need to address payment methods proactively. 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 platform fails to provide the payment options that a user expects, this can slow new customer acquisition and deter potential buyers.
By integrating payment considerations into the core strategy, B2B platforms ensure they are well-equipped to handle financial transactions securely, and in a way that meets customer expectations.
Key considerations for your payment provider
When selecting a payment provider for a B2B platform, it's important to look at several key factors. These considerations pave the way for a successful payment ecosystem:
- Payment methods diversity: A payment provider should offer a wide array of payment methods to accommodate the preferences of a diverse range of users.
- Seamless and secure processing: The payment provider should adhere to strict compliance standards, facilitate cross-border transactions, and implement fraud prevention and management protocols.
- Onboarding and verification: Simplifying the onboarding process while maintaining stringent verification measures ensures a trustworthy environment.
- Modularity and flexibility: Customizable payment solutions are essential for catering to the unique requirements of various platfroms. The payment infrastructure should be adaptable to accommodate changing needs.
- Scalability: As a platform grows, the payment provider should support the need and methods required for growth.
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 integrates with other providers and technologies, allowing platforms to grow, adapt, and scale. Mangopay offers all of this and supports diverse payment methods and evolving platform needs, underpinning sustained growth and ensuring a seamless payment experience for all involved.
The power of payment terms
One of the most potent tools in a B2B marketplace's arsenal is offering a diverse range of payment methods to meet buyers' needs. This approach aligns with the digital transformation sweeping through B2B trade and users' increasing expectations. Approximately 60% of B2B trade currently transpires on credit terms, underlining the significance of this offering. In an era where B2B users are demanding a purchasing journey akin to the B2C experience, enabling credit purchases on various channels has become paramount.
For B2B platform users, 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 allows users to 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 users, ultimately resulting in higher rates of sales.
Having worked closely with our partners, we’ve also seen proof that the platform stands to gain significantly from a payment strategy that embraces payment terms. This benefit extends to both payers and payees participating in the platform. 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 platform - it's the solid foundation that supports growth and 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.
