The B2B payments space continues to change and grow, which can make it overwhelming to know where to start when it comes to choosing a solution to best facilitate the process. To start, you want a solution that is able to tackle large issues like buyer frustration with traditional payments and low cart conversions. Plus, you need to avoid having to deal with pain points that you’d find in other solutions such as a disrupted customer experience and time-consuming ancillary activities, like receipt tracking.
The Pitfall of PunchOut
PunchOut2Go is an application that allows buyers to access a supplier’s website by from the buyer’s own procurement system. While this might seem like a beneficial solution for your B2B buyers, this solution was created for large enterprises, meaning there is no set standard. Companies must decide which customers to support with Punchout based on their purchasing requirements as well as eProcurement system.
Additionally, the disjointed customer experience creates disruption in the flow. Since PunchOut does not host any of the supplier information on its own, it forces users to leave an application and enter a different one, with an entirely separate look and feel. According to a recent survey, 54% of B2B buyers agree vendors should develop a consistent buying experiences across all channels to improve their buying experience.
Purchasing Card Perils
A purchasing card might seem like the easiest route as a seller. You place the responsibility on the buyer to make the purchases necessary and properly track the receipts. However, according to the Next Level Purchasing Association, a leading educational provider for professionals in procurement, a p-card comes with host of downfalls. One of these downfalls is the increased risk of fraud and theft. You open yourself up to a large hazard of overspending and the misuse of company cash. Additionally, buyers aren’t too keen on purchasing cards either as reconciling a purchasing card statement with a purchasing log is frustrating, time consuming and laborious. It takes precious time away from those who could be focusing on growing and scaling the business. Plus, a p-card may also not be able to integrate with other purchasing data, which can cause confusion during reconciliation.
Creating a Better Experience
Offering a streamlined online payment experience for your buyers should be a paramount part of your overarching eCommerce strategy. In order to mitigate the risk of fraud and theft on your end while also making the checkout experience seamless and simple, provide the types of payment options your buyers want the most. Extend terms at checkout and allow buyers to pay on more flexible terms and obtain higher purchasing power.
With Credit as a Service® (CaaS) from MSTS, you can extend risk-free lines of credit or Net30 terms at checkout with minimal heavy lifting required. Learn more about how to get started with Credit as Service for your business and request a demo today.