The Covid-19 pandemic had led to more online business transactions thanks to social distancing. Businesses can now make transactions online, in social media and other venues without physical contact. New technologies like AR app design are soon becoming the norm, and this will affect how we transact as well. What we have seen is an extension of the use of credit cards, which is now mainstream.
The global credit card market is expected to grow from $100.05 billion in 2020 to $103.06 billion in 2021 as more people use credit cards for B2B transactions. In 2021, B2B payment methods have become more commonplace. This is one of the most important aspects of the business industry.
What the business community at large has discovered are a few interesting trends that have become the norm today. These business trends revolve around cash payments, online payment systems and more. They are:
- The rise of digital payments.
- The massive growth of business moving to online and paperless payment methods.
- A shift in the way that businesses collect debts.
- The increase of online spending by small businesses to afford expensive online providers for their needs.
- Online payment options for B2B transactions will be more streamlined with a focus on easy integration and security features.
In addition to debit and credit cards, companies are now accepting cryptocurrency as a payment method. Companies from all over the world are foregoing paper bills for digital ones as well. With this in mind, we’ve written a blog post on five trends that are expected to take place in 2022 with payments.
As we embark on an era that is widely regarded as a ‘new normal’, it’s important for us to take stock of what’s in store for B2B payments in the next few years, and why these trends are going to be worth considering as you plan your business strategy.
Here are five trends for B2B transactions that are already happening:
Free international payment apps will lead to global acceptance of digital currencies like Bitcoin. In 2021, companies like Purse and Sapna have made it possible to pay online with Bitcoin in India. In the coming year, we’ll see more international platforms making digital transactions cost-effective; they will have no transaction fees. A byproduct of this phenomenon is that we’ll see more online payment options for businesses in emerging markets, including increasing penetration of mobile phones and smartphones.
2. Mobile Payments and Bitcoin
Mobile payment methods will lead the next wave of B2B payments innovation. Since the mobile revolution of the past decade, more companies have adopted mobile payments. In 2018 up till now, B2B payment solutions have become more commonplace. Many businesses accept digital currency like Bitcoin in payment options, and with the continued popularity of contactless payments, we’ll see an impact on B2B transactions in the next five years as well. In 2022, expect to see an increase in this trend as companies begin to leverage their mobile phones for making financial transactions including B2B payments.
3. Peer-to-Peer Lending Platforms
The number of peer-to-peer lending platforms will increase along with the number of investors, especially in Europe and North America. Peer-to-peer lending platforms are one of the most mainstream businesses currently on the web. In 2019, we’re likely to see more investment platforms emerge that are based on B2B payment options. In 2022, we’ll see more investment platforms and investors come into the fray; the number of companies that use peer-to-peer lending as payment options for their clients in 2022 will be much higher than today.
Blockchain networks will continue to influence B2B payments and transaction speeds. We’ve already seen this trend take place with the number of blockchain companies in Silicon Valley far outnumbering the number of traditional ones. The performance of these blockchain networks has been far faster than that of traditional companies and makes for more efficient transactions. In 2021, we’ll see more businesses leverage the power of blockchain to process B2B payment options.
5. Faster Transactions
Increasing use of mobile payments via mobile App development will lead to faster transaction times and increased security over digital ties. In the past, mobile payment options were slow and meant spending more time using your phone to make transactions. In 2021, we’re likely to see increased use of digital card transactions with faster transaction times. This increased use will lead to better security as companies adopt B2B payment options like Android Pay and Apple Pay on their phones using great mobile app design. The prediction for how payments will evolve in business over the next five years is that they will become easier and more accessible than ever before.
In conclusion, there is much in store for B2B payments. Companies are finding that more and more businesses are starting to make payments online or by phone without having to meet in person. While many of the technologies associated with digital currency continue to alter how we transact, there are larger forces at work that will have far-reaching effects on how business is conducted in every country, all over the world.