How Is Fintech Reshaping the B2B Payments Landscape?

The efficient movement of money between businesses turns the wheel of the economy. However, raising funds for growth and development has always remained a challenge for small and medium businesses in India. The massive growth of the fintech sector is not only reshaping B2B payments in the country but has also acted as a catalyst for the growth of e-commerce. 

KredX is a leading supply chain financing solution provider and has leveraged the potential of technology and data to accelerate the growth of businesses.

How Is Fintech Modernising the B2B Payments Landscape? 

Gone are the days when people had to approach formal institutions to solve their financial problems. Today, new ventures are opting for fintech players as their preferred partners. Here are their reasons:

• Assistance to New Businesses 

Fintech lenders have facilitated financial inclusion by lending a hand to businesses with minimal or low credit scores. They use data collected from the history of bill payments and social media usage and study the behaviour pattern to provide a tailor-made solution for each business.

• Instant Payments 

Previously cheques and bank drafts were the modes for B2B transactions. But the rise of technology has enabled businesses to pay their merchants and vendors instantly. As a result, it saves crucial time and effort and improves business relationships.

• Better Software Interface

Fintech service providers are also known to provide innovative software platforms which are easy and hassle-free to use. These platforms offer features like regular reminders and different modes of payment and financing options. It facilitates faster B2B payments and brings in much-needed flexibility.

• Customised Digital Infrastructure

The cutting-edge technology of fintech service providers like KredX has enabled them to introduce an entirely new digital infrastructure. Moreover, it serves as an effective alternative to traditional banking.

• Hassle-free Documentation Process

Contactless and paperless documentation is a vital way fintech companies are reshaping B2B payments in India. Instead of extensive paperwork, they use digital-based identification systems such as Aadhaar, UPI, and GSTN for e-KYC or video-based KYC.

Critical Benefits of B2B BNPL 

BNPL (Buy Now, Pay Later) is a financing product that helps businesses purchase from B2B marketplaces, distributors, and suppliers. The underlying concept of BNPL is that businesses can purchase products and services whenever they require them and pay later or in instalments. 

Here are its key benefits: 

• Cost-effective Model

The B2B BNPL option offers businesses the advantage of minimal interest EMIs. In addition, delayed payments are associated with nominal penalties. This is in stark contrast to the high-interest rates and fees offered by traditional banks.

• Improves AOV of Sellers 

With B2B BNPL, sellers receive their due payments immediately, while buyers get to pay later at their convenience. This helps improve sellers’ AOV (Average Order Value) and customer experiences. 

Bottom Line

Today, businesses are leveraging the advanced technology of fintech service providers for their growth. Over the years, the growth of the fintech sector has reshaped how B2B payments are made in India. Moreover, financing products like BNPL enables businesses to solve their cash flow challenges.