B2B commerce is undergoing fundamental change; B2B buyers are increasingly younger digital natives who demand eCommerce experiences akin to those they enjoy in their personal lives as consumers. But many merchants are ill-prepared; legacy technologies and processes are ill-suited to acceptable buying experiences. In turn, buyers are readily churning off long term suppliers in search of better digital buying experiences. One of the most significant shifts is the move away from traditional methods like BACS and commercial credit card payments towards innovative alternatives like Pay by Bank. For B2B merchants building an eCommerce capability, embracing new methods solves several challenges.
For decades, credit cards have been the cornerstone of B2B payments. They offered convenience and the ability to accept payments more readily. However, as businesses scale and transaction volumes increase, the limitations of credit cards become more apparent. High transaction fees eat into margins, while security risks and fraud vulnerabilities pose significant ongoing challenges. Moreover, delayed settlement means the reconciliation process with credit card payments can be cumbersome and time-consuming, leading to inefficiencies and errors that impact overall business operations and their ability to get their products delivered on time.
Industry trends indicate a shift away from credit cards. According to a number of recent studies, a significant number of B2B buyers are exploring alternative payment methods that offer better terms and enhanced security. This change is driven by a need for more cost-effective, secure, and streamlined payment processes.
Enter Pay by Bank and Payment Links. These modern payment solutions are transforming how B2B transactions are conducted, offering big benefits over both BACS and traditional credit cards.
Pay by Bank leverages open banking infrastructure to facilitate direct account-to-account transfers, bypassing the need for the traditional card networks. This method offers a seamless, secure, and instant payment experience for both merchants and buyers. For a detailed understanding of how Pay by Bank works for buyers, check out our comprehensive guide here.
Payment Links, on the other hand, provide a versatile way to request payments from buyers wherever they are. Links can be incorporated into traditional invoices, Merchants can easily send these payment request links via email, SMS, Whatsapp, or to whatever digital channel their buyers are mostly spending their time in. This gives their buyers the simplest and quickest way to settle their invoices and complete purchases.
For UK Fire Door Training, just 12 months after offering Pay by Bank checkout payment option to customers, approximately 10% of their monthly transactions are now processed through Pay by Bank. This feature has not only provided convenience for their tech-savvy customers but also contributed to significant cost savings for the business. With transaction fees for bank payments as low as 0.4%, UK Fire Door Training could redirect the profits no longer being eaten up by transaction fees into other critical areas of the business, such as marketing and product development.
“Within just a few months, ten percent per month of purchases are made via Pay by Bank now. It’s a growing proportion, and importantly for a lot of customers that might be the only reason they completed the purchase; because they didn't have a card with them for instance. In those cases not everyone comes back to the checkout; without Pay by Bank we could have lost that ten percent of revenue”
Jonny Millard (Managing Director) - UK Fire Door Training
Prior to working with Rvvup's Payment 3.0 platform, Celtic Timber were predominantly taking payments by card with relatively high transaction fees. Adding multiple payment methods to the checkout was a challenge and having multiple integrations and dashboards increased complication, time and resource spent on reconciling payments. In addition, they had no simple option to accept lower fee Pay by Bank payments via their WooCommerce store or through Payment Links.
Fees were a notable cost that Celtic Timber wanted to reduce and at the same time they wanted to increase their payment choice at checkout without impacting checkout performance or increasing management and operational complication.
“Working with Rvvup has been a no-brainer for us. We are now able to offer highly secure payment methods that are aesthetically designed for conversion and also save us money. We have reduced our abandonment rate with this faster, more secure payment service for our customers”
Grant Goddard (Managing Director) - Celtic Timber
The era of BACS and credit card dominance in B2B payments is waning. As businesses strive for more efficient, secure, and cost-effective payment solutions, Pay by Bank and Payment Links emerge as the frontrunners. For ecommerce leaders, financial heads, and operations managers, embracing these innovative payment methods is not just a trend—it’s a strategic move towards future-proofing their business.
At Rvvup, we are at the forefront of this payment revolution, offering comprehensive solutions that simplify and enhance the payment experience. Explore how our Pay by Bank and Payment Links solutions can transform your business and join the growing number of B2B merchants who are paving the way for a more efficient and secure payment future.