Preparing B2B Payments for the Next Generation
Gen Z, those born between 1997 and 2012, are on the cusp of entering the workforce. Soon, they will become the next generation of B2B buyers. Suppliers who can provide a digital-first, embedded payments environment for them that matches the sophistication of what they’re already used to as consumers, will have a leg up on the competition.
Here are some ways suppliers can best prepare for the next generation of buyers:
Make Seamless Payment Experience a Priority
More brands are competing on customer service, instant access, and personalized experiences than ever. In fact, for younger generations, it often only takes a few poor interactions to send them elsewhere. Forbes found that most Gen Z consumers would stop doing business with a brand after just two or three less-than-stellar experiences and merchants accepting new forms of digital payments has a positive impact on their brand perception.
As Gen Z enters the finance space, many will likely expect suppliers from whom they buy to seamlessly accept credit cards—especially virtual cards, which offer a one-time, randomly generated card number—so they can take advantage of rebates and extend float. Suppliers need to prepare for credit card acceptance with an infrastructure that integrates neatly with ERP systems or other accounts receivable technology to enable straight-through processing, along with the ability to pass Level 2 & 3 payment data for interchange savings.
Embrace Digital B2B Payment Networks
Gen Z’s use of monthly peer-to-peer platforms (ie. Venmo, Paypal, Zelle) rose from 79% in 2019 to 93% in 2022 according to Forbes. As this next generation enters the workforce, they will most certainly be demanding B2B tools that work as conveniently and seamlessly in their professional lives as these P2P platforms do in their personal lives.
For suppliers receiving payments, digital payments networks can act as a single aggregation engine for payments and remittance data so cash can be easily applied into an enterprise resource planning (ERP) system. While B2B payment networks are relatively new and often require a high level of sophistication to handle complex B2B transactions, now is the time to get business systems in line with this next generation payment expectation.
Reduce Dependance on Paper Checks
20% of Gen Z have never used a paper check and utilize mobile payments more than any other payment method. While consumers are leaving checks behind, businesses aren’t at the same rate. In fact, 33% of all business transactions are still made by paper check in North America, according to the Association for Finance Professionals. To prepare for Gen Z’s preference for digital payments, finance teams must commit to eliminating the need for non-digital, non-embedded payments and move to welcoming environments for accepting digital payments.
Learn More About Our B2B Payment Solutions:
Contact us online or call 1-800-621-8931.
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