How User-Centricity Can Shape the Future of B2B Payments

User-centricity is a design philosophy that puts the needs, preferences, and expectations of the end-users at the center of every decision. It is not a new concept, but it has become increasingly relevant and important in the digital age, especially in B2B payments.

B2B payments are transactions between businesses, such as suppliers, vendors, distributors, and customers. They are often complex, time-consuming, and costly, involving multiple parties, systems, and regulations. They also have a significant impact on the cash flow, profitability, and relationships of the businesses involved.

In the current economic climate, where uncertainty, volatility, and competition are high, B2B payments need to be more efficient, secure, and convenient than ever. That’s why user-centricity is a must for banks and fintechs that want to provide innovative and sustainable solutions for B2B payments.

Here are five key insights and breakdowns on how user-centricity can transform the B2B payments space:

1. User-centricity enables seamless and contextual experiences

One of the main challenges of B2B payments is the friction and fragmentation that result from switching between different systems and platforms to complete a transaction. For example, a business may need to use an ERP system to generate an invoice, a banking app to initiate a payment, a third-party service to verify the identity of the recipient, and a separate portal to track the status of the payment.

User-centricity can eliminate this friction by embedding financial capabilities into the core non-financial systems that businesses use, such as ERP, CRM, or e-commerce platforms. This way, businesses can perform payments and other financial tasks within the same context and workflow, without having to leave their preferred environment or interface.

This creates a seamless and contextual experience that saves time, reduces errors, and enhances convenience.

Insight: A business can pay a supplier directly from their ERP system, with the payment information automatically populated and reconciled, and the payment status updated in real time.

2. User-centricity drives personalization and customization

Another challenge of B2B payments is the diversity and complexity of the needs and preferences of different businesses and industries. For example, some businesses may prefer to pay by credit card, while others may opt for bank transfer, wire, or ACH. Some businesses may need to pay in multiple currencies, while others may require specific payment terms or conditions.

User-centricity can address this challenge by enabling personalization and customization of the payment solutions and options offered to different businesses. This means that banks and fintechs can tailor their payment products and services to the specific requirements and expectations of each business, based on their profile, behavior, and feedback.

This creates a personalized and customized experience that increases satisfaction, loyalty, and retention.

Insight: Offer a customized payment plan that matches their cash flow cycle, or a personalized payment dashboard that shows their payment history, analytics, and recommendations.

3. User-centricity fosters collaboration and trust

A third challenge of B2B payments is the lack of collaboration and trust between the various parties and stakeholders involved in a transaction. Companies often face delays, disputes, or fraud due to the lack of visibility, communication, or verification of the payment process and outcome.

User-centricity can overcome this challenge by fostering collaboration and trust among the participants of a payment transaction. This means that banks and fintechs can facilitate and enhance the exchange of information, data, and feedback between the payer and the payee, as well as other intermediaries, regulators, or auditors.

This creates a collaborative and trustworthy experience that improves efficiency, security, and compliance.

Insight: You can leverage blockchain technology to create a transparent and immutable record of the payment transaction or use biometric authentication to verify the identity and authorization of the payment parties.

4. User-centricity stimulates innovation and differentiation

A fourth challenge of B2B payments is the rapid and constant evolution of the market and customer expectations. For example, a business may demand new payment features, functionalities, or channels, or switch to a different payment provider that has a better value proposition.

User-centricity can meet this challenge by stimulating innovation and differentiation of payment solutions and offerings. This means that banks and fintechs can continuously monitor, measure, and improve the user experience of their payment products and services, based on the feedback, data, and insights collected from the users.

This creates an innovative and differentiated experience that adds value, enhances competitiveness, and attracts new customers.

Insight: You can introduce new payment methods, such as QR codes, mobile wallets, or instant payments, or offer new payment benefits, such as rewards, discounts, or cashback.

5. User-centricity supports sustainability and social responsibility

A fifth challenge of B2B payments is the growing awareness and concern of the environmental and social impact of the payment activities and operations. For example, a business may want to reduce its carbon footprint, support a social cause, or align with sustainability goals.

User-centricity can address this challenge by supporting the sustainability and social responsibility of payment solutions and practices. This means that banks and fintechs can incorporate environmental and social factors into their payment design and delivery, such as reducing energy consumption, minimizing waste, or donating to charities.

This creates a sustainable and socially responsible experience that builds reputation, credibility, and goodwill.

Insight: You can offer a green payment option that offsets the carbon emissions of the payment transaction, or a social payment option that allocates a percentage of the payment amount to a social project or organization.

Conclusion

User-centricity is a powerful and essential approach to designing and delivering B2B payment solutions that can create positive and lasting effects for businesses, banks, fintechs, and society. By adopting a user-centric mindset and methodology, banks and fintechs can create B2B payment experiences that are seamless, personalized, collaborative, innovative, and sustainable.

Building and implementing a user-centric strategy is key to your business, but you don't have to go at it alone! At WDIR, we work with banks, fintechs and B2B payments stakeholders around the world to create user-centric payment strategies that grow your business in the long-term. Get in touch today!