Designing for Reduced Payment Failures in B2B Transactions

Imagine this: A CFO tries to approve a critical supplier payment. She logs into her company’s B2B payment platform, only to encounter confusing navigation, unclear instructions, and repeated error messages.

Frustrated, she abandons the payment halfway, risking the company’s relationship with the supplier.

This scenario isn’t hypothetical. Payment failures are a frustrating issue in B2B transactions for everyone involved. For the end user, it's the frustration of a payment not going through and often, lack of clarity around what happened. For payment platforms, it's the damage to reputation, transaction costs, and even compliance costs (Even more stringent regulations).

By focusing on better user experience (UX) and smarter infrastructure, businesses can significantly reduce payment errors and ensure smoother, more reliable transactions.

In this article, we’ll examine why payment failures occur, their impact on B2B operations, and actionable recommendations to address them through user-centric design and robust payment infrastructure.

What's behind Payment Failures?

B2B payments are inherently complex, involving multiple stakeholders, approvals, and systems. According to a recent study by PYMNTS and Nuvei, 11% of transactions processed by the average eCommerce firm failed in the past year.

1. Approval Bottlenecks

Payment processes often require multiple layers of approval. When systems don’t provide clear workflows or real-time updates, delays and errors are inevitable.

2. Lack of Transparency

Unclear payment statuses, hidden fees, and missing currency conversion rates confuse users. Without clear information, payments are often abandoned or delayed.

3. Technical Glitches

Issues like system downtime, failed integrations, and unhelpful error messages lead to incomplete transactions.

4. Routing Challenges

Traditional payment systems often lack intelligent routing, leading to failed transactions due to incorrect or suboptimal pathways.

Smart routing, which dynamically selects the best path for a transaction based on factors like network reliability and cost, is a solution many platforms are yet to adopt.

5. Mobile Accessibility Gaps

With more professionals using mobile devices for work, payment platforms that lack mobile optimization face higher drop-off rates.

6. Complex Interfaces

Overloaded dashboards and unclear navigation make it hard for users to complete tasks, increasing abandonment rates.

Better Infrastructure and UX Can Reduce Payment Failures

A user-friendly payment platform and a robust infrastructure are necessities for reducing errors and ensuring seamless transactions. Here's how UX and smart infrastructure design can help:

1. Implement Smart Routing

• Use intelligent routing to select the best transaction path dynamically. This reduces the likelihood of failures caused by network issues or incorrect pathways.
• Partner with multiple payment service providers (PSPs) to ensure redundancy and fallback options.

2. Design for Transparency

• Clearly display payment statuses and timelines to users.
• Provide detailed breakdowns of fees, taxes, and currency conversions upfront.

3. Optimize Approval Workflows

• Implement real-time notifications and reminders for pending approvals.
• Consolidate approvals into a single dashboard to minimize navigation.

4. Build Mobile-First Experiences

• Use responsive design to ensure platforms work seamlessly across devices.
• Create mobile-first features like fingerprint authentication and simplified navigation.

5. Improve Error Messaging

• Avoid cryptic error codes. Use clear messages like: “Add funds to continue your transaction.”
• Offer immediate solutions, like links to update payment details or various channels.
• The PYMNTS and Nuvei study found that nearly 64% of firms rank difficulty in pinpointing the causes of failed payments as their top challenge. Clear error messaging can help address this issue.

6. Invest in Real-Time Capabilities

• Enable real-time payment tracking to increase user confidence.
• Integrate real-time fraud detection to reduce transaction rejections.

Why Payment Failures Demand Immediate Attention

Reducing payment failures isn’t just about convenience. The business implications are significant:

• Improved Cash Flow: Faster payments mean fewer delays in revenue collection.
• Stronger Relationships: Suppliers and partners value reliable transactions, fostering trust and loyalty.
• Lower Operational Costs: Fewer errors mean less time spent troubleshooting, saving money on support.
• Competitive Advantage: Companies that offer smooth payment experiences gain an edge in retaining and acquiring clients.

Key Recommendations for Payment Leaders

1. Adopt Smart Routing: Ensure transactions are dynamically routed through the most reliable pathways.
2. Simplify Workflows: Reduce the number of steps required to complete approvals and payments.
3. Invest in Transparency: Provide users with clear, upfront information about their transactions.
4. Enhance Mobile Accessibility: Recognize the growing importance of mobile optimization.
5. Leverage Data Analytics: Continuously monitor transaction data to identify and address failure trends.
6. Collaborate Across Teams: Work closely with IT, product, and UX teams to design solutions that are user-centric and technically robust.

WDIR, your Partner in B2B Payment UX

At WDIR, we create seamless, intuitive, and secure payment experiences through UX optimization. This means working with you to ensure that your tech stack and payment workflows serve your end users and help you avoid costly payment failures. A UX-led philosophy helps you:

• Reduce payment errors and delays.
• Improve user satisfaction.
• Enhance your platform’s overall reliability and performance

Give your customers the payment experience they deserve. Get in touch today!