Embedded Payments for B2B Merchants and Marketplaces: 4 Considerations

Embedded Payments for B2B Merchants and Marketplaces: 4 Considerations

Embedded Payments for B2B Merchants and Marketplaces: 4 Considerations

Embedded finance allows non-financial businesses to make payments and other financial services simply disappear into the background of the solution being offered to a customer. And its growth trajectory is staggering: the total addressable market for embedded finance will top $7 trillion globally by 2030 with the embedded payment sector in the US forecast at a $300 billion revenue opportunity.

The most visible example of embedded payments that has been experienced by most is Uber, a seamless transaction that actually requires no transacting on the consumer’s part. B2C embedded payments have proliferated from there. Now, unsurprisingly, B2B buyers who require a variety of payment options, including net terms, are beginning to expect that their purchases be transacted with the ease and convenience of an Uber payment.

“Three years of consumer behavior change was squeezed into one year in 2020,” wrote Forrester Principal Analyst Jay McBain. “Consumers are now demanding online experiences, happily virtual, wanting seamless digital procurement and provisioning, and wanting everything at the click of a button. The delta between B2C buyers and B2B buyers has collapsed during the pandemic. It’s all about speed, convenience, and remote, whether the buyer is acquiring a Peloton or a software product.”

These disruptions and revolutionary changes intensify the competition to “own” B2B customers. B2B companies must develop a future-ready and resilient payments strategy in response. And while B2B embedded payments require more expertise and work to satisfy, B2B sellers and marketplaces that meet these heightened expectations will establish stickiness and loyalty with customers, and enjoy cost savings, increased revenue potential and better cashflow.

If your customers don’t already expect their B2B payments to be invisible, they will soon. Embedded payments can enable that invisibility; however, building the capability requires significant work, technical expertise, and a firm grasp of all of the costs that can arise. Here are four important considerations:

B2B merchants must be closely in tune with the revolutionary changes to customer experience, engagement and convenience embraced by the rising digital generation and accelerated by COVID. B2B customers  are also consumers after all, and they now have the same heightened expectations for seamless, invisible payments in their B2B purchasing that they have come to expect in B2C transacting. B2B merchants must now make it as easy as possible for customers to transact with their brand by embracing the value an embedded payments capability delivers.

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