Fintech is a swiftly growing industry, with groundbreaking new products and services constantly being developed. It has already brought payment staples such as digital wallets and contactless payment into mainstream use, and there are many other fintech innovations emerging to benefit both consumer and business transactions.
The global fintech industry is currently valued at over $200 billion. Over the next five years, bolstered by a CAGR of almost 12%, it’s expected to surpass $355 billion. With the growth of the technology industry as a whole and the increasing sophistication of AI and machine learning, there are many new B2B fintech innovations entering the market, allowing businesses to streamline their operations and improve the payment experience.
1. Integrated Payment Solutions
Businesses often have several different systems integrated into their operations, such as e-commerce platforms, customer relationship management (CRM) software, and enterprise resource planning (ERP) systems. Having an integrated payment solution that can interface with these systems allows businesses to streamline B2B transactions for both the company and its customers. Data is collected in and accessible from one place, enabling better data management and analysis. This can result in better insights into customer behavior, market trends, and business needs.
2. Self-Service Customer Portals
Many B2B transactions continue to be done manually, requiring the involvement of the customer service team and constraining payments to the business hours of the company providing the product or service. However, self-service payments are becoming more common in the B2B realm, accelerated by the start of the COVID-19 pandemic in 2020 as more business operations moved online. These portals allow customers to make payments at any time, as well as review past activity and other account information without needing to contact customer service. Not only is this fintech innovation more convenient for customers, it also frees up customer service reps to work on more involved tasks.
3. Banking as a Service
Banking as a Service (BaaS) involves third parties offering banking products and services, such as loans, insurance, or monetary accounts. Software platforms can integrate these things into their own offerings, providing an integrated, convenient experience to customers. A BaaS provider typically works directly with a bank to provide these services to software platforms, which are then able to streamline processes such as bill payments and funding access, allowing their customers access to the financial tools they need without having to leave the software platform. As B2B transactions often involve large payments and many resources, integrating banking products and services can simplify the process for all parties involved.
4. QR Code Payment
Payment via QR code is becoming increasingly popular, as it doesn’t require a complex point of sale system or expensive equipment. On the buyer side, QR codes offer a quick and convenient way to pay through their phones, even if they don’t have a digital wallet set up. While this type of payment is currently more common in the B2C sphere, it is also beginning to be adopted for B2B transactions. A QR code can provide business customers with quick access to payment tools in place of physical documents such as invoices and checks. It can also avoid the extra fees that come with external payment processors, which is particularly advantageous to smaller businesses and other companies with tight margins and high sales volumes.
5. Scan and Go
Scan and go is another fintech innovation that is being rolled out to consumers but that also has applications for B2B transactions. The system involves customers using their mobile devices to scan items as they shop, pay via their phone, and then leave the store without needing to engage in a physical checkout process. It streamlines the process for the customer, reduces wait times, and cuts down on the physical infrastructure and staff required by the seller.
From a B2B perspective, this can be a valuable tool in environments such as cash-and-carry wholesalers, where business customers pay in cash and leave with their purchases immediately. A scan-and-go system is also a valuable data collection tool for insights into customer behavior and preferences.
Finding the Right Solution
There are many new fintech innovations being developed and released into the market, each with their own advantages and challenges. The type of payment solution you choose, along with the business providing it, can make a substantial impact on your company and its customers. That’s why Bizvibe’s B2B platform provides detailed insights on close to 200,000 finance companies along with tools for comparing and connecting with potential business partners, all available to try for free.