Digitizing B2B Payments with Electronic Pay Technology
By 4 minute read• Published June 16, 2022 •
Largely, innovation in payments has taken place on the consumer side of business. Advancements in business-to-consumer (B2C) and consumer-to-consumer (C2C) sectors have been leading the way by a large margin. The library of apps that assist consumers with paying or transferring money via mobile devices has become a countless array of tools at the ready, including a variety of “buy now, pay later” financing solutions.
In the business-to-business (B2B) payments sector though, the environment looks entirely different. B2B payments have consistently been slow to modernize and become more digitally accessible. Approximately 40 percent of B2B payments are made with paper checks in the US. Consumers have the ease of purchasing nearly anything instantly online, but B2B payments continue to remain costly, complicated and outdated.
Leading the Way in Modernizing and Transforming B2B Payments
B2B payments have been largely untouched by innovation due to the fact that they’re inherently more complex than consumer payments. As buyers and suppliers practice business across increasingly global supply chains, the challenges become more difficult to solve. Dealing with different currencies, jurisdictions and regulations can complicate how and how soon suppliers are paid.
There is a certain level of technical complexity that also interferes with modernization. Any one company can have multiple payment platforms that it will leverage to pay their suppliers, especially when they are located in different geographies. Managing multiple payment systems makes the simplest tasks tedious. Despite these challenges, B2B payments are still ready for a transformation that reflects what the consumer payment sector experienced before.
PrimeRevenue has risen to the challenge and created the first step towards this new future with its unified B2B payments solution, the SurePay Platform. This solution meets modernization demands with the following capabilities:
- A single platform to handle on-time and early payments to suppliers of all sizes across all geographies and currencies
- Ability for suppliers to instantly track invoice payment and upcoming payment totals for improved payment forecasting
- Robust reporting and audit trails for easy troubleshooting and compliance with various payment regulations
- End-to-end payment automation from invoice uploads and remittance advice reports to trading specific invoices for early payment and instant visibility into payment status
Beyond a well-rounded platform that provides suppliers with a direct, hands-on ability to organize and manage their payments, PrimeRevenue has continued to enhance speed and efficiency of payments with new patents.
The company’s Electronic Time Draft (ETD) solution reduces friction in onboarding suppliers to PrimeRevenue-led supply chain finance programs. PrimeRevenue’s patented technology waives the need for UCC filings and expedites suppliers’ access to cash by eliminating lien releases. It removes the need for paper and manual intervention in conducting supply chain finance (SCF) transactions and allows drafts to remain in purely electronic form throughout the duration of the draft discounting process.
ETD has helped suppliers get paid as early and quickly as possible with minimal administrative hassle, and = can onboard in as little as five days, while your standard accounts receivable takes at minimum 21 days. ETD programs also tend to have a much higher rate of onboarding, with an average of onboarding 10suppliers to each one supplier added to a receivables program.
ETD programs benefit suppliers by keeping them out of lien release requests and filing delays, which on average can take up to 67 days to work through. When all is said and done, a Notice of Satisfied Conditions is sent. This formal document, issued by a funder, is provided once they have approved the new purchase payment obligation rights from a supplier on the platform, essentially approving the supplier for participation.
PrimeRevenue’s new patent is a testament to the success of the organization and its commitment to empowering supply chain finance and streamlining B2B payments to companies across industries and revenues.
The stagnated state of the B2B payments sector is quickly coming to an end with the modernization and automation that PrimeRevenue is delivering to the industry. These advancements will have a revolutionary impact on buyers, suppliers and the global payments industry as a whole.
PrimeRevenue’s SurePay Platform is more than ready to set the standard and forge the path ahead on the road to digitizing B2B payments.
Want to learn more? Contact us.