Many of today’s payment solutions used in B2B were created for a B2C context, while few have been purpose-built for business buyers’ nuanced needs. So many SMBs use the same channel as consumers use for B2B purchases. This creates a huge space for B2B vendors to offer different checkout options like Net 30/60/90 options to attract corporate buyers.
A sizable 60 percent of B2B buyers indicate they are open to purchasing on digital marketplaces, vs 64 percent of those who buy from supplier-branded websites. The global B2B e-commerce market size was valued at USD 6,883.47 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 19.7% from 2022 to 2030. The COVID-19 pandemic has brought about a shift in consumer preference for online shopping, creating avenues for market growth. The closure of physical stores, coupled with an increase in the number of online orders, has also positively impacted the B2B business outlook.
Here’s the crazy part. It is estimated that B2B payments volume totals approximately $120 trillion per year globally. Compared to Business-to-Consumer (B2C), electronic B2B payments have significantly lagged in adoption across industries, with approximately one-third of total B2B global expenditures processed electronically, versus two-thirds of B2C global expenditures.
A streamlined B2B digital payment experience integrated with existing Enterprise solutions will be the key to driving the adoption of B2B e-commerce in the coming years. For example, an HR system is a point solution where its data starts flowing into other places, eg. IT, security, compliance, and workspace systems to make a purchase and manage data. A streamlined integrated system should integrate HR with other systems to trigger waterfall actions and process all required tasks digitally. And those integrated systems will be leading the adoption of B2B e-commerce.
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