The economic impact of the pandemic has created a need for new and frictionless payment gateways for businesses to keep running. Small businesses, given the economic slump, have been hit the hardest because of disruption in cash flow. Very few have the resources to endure and keep running without an operating cash flow. Such businesses need prompt payments from their clients to continue functioning smoothly. However, traditional methods like paper checks can take several days/ weeks to arrive by mail.
The complexity of the current environment has seen B2B payments gain a substantial leeway. With technological advancements, banks are too trying to develop consistent and reliable means of transactions that are instant, real- time, safe and ubiquitous, in order to keep businesses running.
Companies are on a steady path to abandoning traditional paper-bound methods and embracing simplified digital transactions. Easy, technology-driven payments apps and gateways, are streamlining fund transfers to businesses and vendors. Real-time payment methods that can fast-track the flow of funds are valuable to vendors that need to get compensated in a timelier manner.
Not to mention, a business, to continue running their day to day operation, needs to be remunerated even for small variable costs, whether the amount is big or small. Avoiding small remittances can prove to be harmful for the day to day of a business. Small value transactions, is what keeps the economy of a business running. However, the point of friction here is higher charges and geographical barriers. The buyer comes to a standstill because to make a small value remittance, one may need to incur an unexplainable high-cost, also facing the hindrance of a minimum threshold each money transfer services sets for transfer of money. A working solution needs to be in place for small value remittances, considering the digital shift caused by the pandemic.
The frictions associated with paper checks and cash-based transactions have put some businesses under added stress during the pandemic, but digital tools can help turn that around. Payers and payees that have become accustomed to a more rapid pace of transactions are not likely to give up on the convenience and ease and go back to older, slower means, thus leaving the day to day of a business entirely up to ubiquitous B2B payment platforms.