While consumers have benefited from innovation in digital payments, business-to-business e-commerce still relies on outdated systems.
And that’s a $6.7 trillion opportunity ready to be reimagined, according to a contributed article from Magento’s Andy Barker. His piece was the most read on Mobile Payments Today in October.
“Why has it taken B2B payments so long to adapt to the digital age?,” Barker wrote. “The B2B money transfer market is tough to crack. Technology providers need proven regulatory records, sound security practices and strong balance sheets in order to win over B2B merchants — a group that, generally speaking, is already resistant to technological change.”
Another contributed article worth mentioning, that cracked the top five in October, was about how QR codes are changing e-commerce.
Jose Diaz, director of payment strategy for Thales e-Security, believes QR codes will speed up e-commerce payments and make them more secure.
“The QR code can be used to reverse the payment flow on which the CNP method is based,” Diaz wrote. “Instead of the consumer providing payment information to the merchant, which then has to request the funds from the consumer’s bank, the consumer obtains the purchase information from the merchants and pushes a payment to them.”
Rounding out the top five in October are pieces focused on the bank approach to mobile payments; the rise of mobile scan-and-go technology in retail, and how Zelle might be faring with bank customers over Venmo.
5. “Is Zelle finding a groove with bank customers over Venmo?“: It was a small sample size, but participants at a consumer panel at last week’s Bank Customer Experience Summit in Chicago revealed their preferences for mobile P2P services.
I couldn’t believe what I was hearing from this group.
You never know what you’re going to get from consumers invited to a conference to share their views about banking, payments and shopping habits. The best part about these panels is that the participants are brutally honest about their experiences, bad and good.
The reason this particular panel caused me to be shake my head in disbelief was because some of them had heard of and actually used something I’ve criticized over the last 12 months: Zelle.
To be clear, my criticism of Zelle isn’t about the product itself.
The banks involved with Zelle needed a way to fight back against what’s become the standard in mobile person-to-person payments in Venmo.
My issue with Zelle has always been about marketing, from the silly name to the staggered rollout with major banks to a standalone app that debuted almost a year after Early Warning officially introduced the service at last year’s Money 20/20 conference.
4. “The rise of mobile scan and go technology“: The rise of ‘Scan and Go’ technology, coupled with other industry developments, is helping retailers to overhaul the buying experience that they offer their customers. So, what do retailers need to know about Scan and Go, and what are its benefits?
The way that consumers shop in-store is fundamentally changing.
The rise of ‘Scan and Go’ technology, coupled with other industry developments, is helping retailers to overhaul the buying experience that they offer their customers. So, what do retailers need to know about Scan and Go, and what are its benefits?
Scan and Go technology is designed to make the shopping experience simpler, faster and more convenient for consumers. Just as bar code technology transformed the efficiency of retail stores in the early 1980s, Scan and Go is set to become retail’s next great disruptive technology, improving a range of existing retail practices.
Just as self-checkout machines are more efficient than waiting in line for an assistant to scan items and process your payments, Scan and Go is the next logical step in streamlining and enhancing the in-store experience.
3. “Playing with the ‘Pays’: The bank approach to mobile payments“: While there are pros and cons to a bank forging its own way with mobile payments outside the Pays, industry executives on a panel last month at the Bank Customer Experience in Chicago agreed financial institutions should be aware of, and explore, all developments in the industry.
About a year ago, Citi introduced itself into the mobile wallet discussion when it debuted an Android app called Citi Pay.
At the time, Citi’s decision to launch Citi Pay continued a debate about what worked best for banks as far as how they handled their involvement in mobile payments outside their participation with the major Pays.
Banks had, and still have, two options — a standalone app, such as Chase Pay or Citi Pay, that sits alongside a financial institution’s mobile banking app, or an NFC-based mobile payments feature within an Android-based mobile banking app.
While there are pros and cons to a bank forging its own way with mobile payments outside the Pays, industry executives on a panel last month at the Bank Customer Experience in Chicago agreed financial institutions should be aware of, and explore, all developments in the industry.
2. “How QR codes are changing e-commerce“: The QR code — which has had a wild ride — is going to both speed up the e-commerce payment experience and make it more secure.
E-commerce has long relied on the “card-not-present” payment method. At this point, online consumers can do the routine with their eyes closed: Enter their credit card number and billing address into the website form, flip their card around to key in the security code, and click “purchase.”
The QR code — which has had a wild ride — is going to both speed up the e-commerce payment experience and make it more secure.
The security risks associated with the CNP payment method are well known.
Merchants’ systems — which store all the information criminals need to commit fraud with consumers’ credit or debit cards — have been vulnerable attack points, hence the data breaches we read about daily. They also don’t have a way to confirm whether the information a consumer enters is their own or compromised data.
1. “Why B2B is the next trillion-dollar payments opportunity“: B2B businesses are typically older, running on what they know and what’s come before them. As a result, the $6.7 trillion B2B e-commerce opportunity remains largely untapped — and payments represent an important part of that untouched territory.
Consumer-facing industries like fashion and electronics have long led the payments innovation game. Large investments in technology and talent over the past decade have brought about mobile wallets, “invisible” payments, one-click checkout, and other advancements that make the consumer buying experience truly frictionless.
Meanwhile, business-to-business merchants lag behind, still trapped beneath outdated systems, analog processes and an “if it isn’t broken, don’t fix it” attitude that has prevented major technological transformation.
B2B businesses are typically older, running on what they know and what’s come before them. As a result, the $6.7 trillion B2B e-commerce opportunity remains largely untapped — and payments represent an important part of that untouched territory. As the final step in every purchase, the payment experience is a crucial component of the customer experience and, by extension, digital commerce’s multi-trillion-dollar potential. B2B payments is the next innovation frontier, and now is the time for technology providers and merchants alike to seize the opportunity.