As fast-moving enterprises plunge into the online landscape and consumers spend more time on their smartphones and tablets, mobile payment is the undisputable rising star.
This results in a business world that has become increasingly diverse, complex and challenging. But the benefits far outweigh the complications, so let’s take a look at some of the ways in which businesses can benefit from mobile payment systems and their associated services.
Disclaimer: Our understanding/definition of mobile payment system may be different from yours, but essentially, it is any transaction/payment process that occurs through a mobile medium, such as smartphones. It may cover remittance, bank transfer, P2P payment, etc.
A truly seamless experience
For one, mobile payments offer a smooth and hassle-free purchasing experience for consumers. We have to remember that B2B customers are still consumers at the end of the day, and they are prone to exhibiting traits associated with consumer behaviour.
Today’s buyers are on the lookout for simple yet intuitive online payment measures that resemble the digital interactions associated with popular B2C brands. They want speed, they want convenience and they want security. Mobile payment services with the right infrastructural support (like ours!) can offer all three.
Stand out in a crowded marketplace
The benefits of mobile payment systems make it easy to imagine what they can do for your business (especially in today’s crowded B2B marketplace).
Merchants that cannot keep up with fast-paced demands in the digital sphere can expect to be outdone by competitors who are early adopters of mobile technologies.
It is not too late though; the B2B transformation towards mobile payments has just begun. It has been a slower transition compared to B2C sectors (especially e-commerce). However, both business owners and investors alike have embarked on the journey to explore B2B opportunities via mobile.
This trend is further proof of the shift in focus towards digital, as B2B players start prioritising customer online experiences and mobile payment solutions.
Responsiveness is a priority
It is not surprising that B2B buyers are growing fond of the convenience and simplicity of shopping and conducting research on their smartphones. They expect B2B merchants to keep up with the times. A Forbes Insights report suggested that 66% of executives are more likely to engage with and buy from a vendor with a mobile-friendly site. On top of this, 37% of executives use their phones for business purchases that are around the USD5,000 - USD100,000 range.
It is safe to say that a lot of money is being left on the table if your site is not responsive (can be viewed on a multitude of devices, such as desktops, tablets and smartphones).
User interface should also be optimised (along with all its features). This means that users must have the ability to make payments, fill out forms, conduct searches and engage with content on your site, all from their mobile devices. Yes, business people use mobile devices a lot, and that’s not really much of a surprise.
B2B mobile commerce is gaining traction
B2C mobile commerce has been all the rage in the last few years, and B2B had been lagging behind for some time. It is only natural, seeing that B2B purchases are generally less impulsive than their B2B counterparts. It takes time, a little patience and in some cases even a little leeway for negotiation (particularly for big-ticket sales).
Things are changing though, with mobile commerce sales growing 200% faster than e-commerce. Now, B2B mobile commerce infrastructure is beginning to gain traction and the power is in your hands.
The B2B user experience already feels very similar to the B2C experience. Mobile payment capabilities are now offering seamless motions from one touchpoint to the next, increasing the possibility of a mobile purchase from a B2B buyer.
B2B mobile commerce platforms are also more customisable now. Buyers can make specific product requests and can even directly negotiate with suppliers.
Flexibility from state-of-the-art tech
Mobile payment platforms are also being developed with more flexibility in mind. B2B sites can now offer a variety of payment options ranging from digital wallets and purchase orders to credit cards. Buyers appreciate an array of options. There are even checkout support systems that let buyers extend their payment terms without taking on additional credit risk.
Voice search as a feature for mobile commerce is also expected to grow in the B2B sector. This will allow for voice-assisted research or help buyers access platforms and make purchases in a more secure fashion. B2B buyers are likely B2C buyers on a personal level.
Catering to the rise of the millennial workforce
As millennials age through the workforce, the typical B2B buyer tends to be digitally native. You can expect this transition to impact how businesses develop their sales approaches, centering more and more on technology and customer experience in order to accommodate the millennial demographic. This is definitely a fintech trend to watch in 2020.
Capabilities for mobile payment in a B2B context are being discussed as the reliance on mobile integration and a preference for digital channels become a core focus of securing B2B sales. Millennial B2B buyers will likely come to expect mobile commerce features, including the ability to make payments through their devices with ease.
It is a good time for B2B businesses to consider doubling down on their mobile payment technologies, especially now that customers from all walks of life are buying online via mobile devices.
Mobile payments have become a compelling method of acquiring and retaining new sales leads and better opportunities by delivering more value at a faster rate and with a more positive experience for the customer.
Will 2020 be a defining and breakthrough moment for B2B commerce and payments? We think so.