Businesses are adopting virtual card payments at an incredible speed. According to Juniper Research, the global market for B2B virtual payments is expected to reach $9.1 trillion in 2027, a 280 percent increase from 2022. In addition, transaction volumes are expected to grow 340 percent to exceed $121 billion, with B2B payments expected to account for 71 percent of the total transaction value.
A McKinsey and Company report indicates that 70 percent of B2B businesses are willing to spend $50,000 or more, and 35 percent are prepared to spend $500,000 utilizing digital channels, including virtual cards. In fact, according to PYMNTS.com, 64 percent of B2B buyers expect to have the ability to pay for their purchases online.
What’s more, PYMNTS.com research has determined that businesses not utilizing virtual cards experience an average revenue loss of 4.6 percent. It’s, therefore, no surprise that B2B businesses are moving to virtual cards, providing the certainty and immediacy of instant settlement of B2B payments.
In addition to significantly increasing revenues on the front end, embracing virtual cards for B2B payments also gives businesses the ability to reduce costs through digital transformation, specifically improving back-end efficiency. In fact, according to a recent survey by PYMNTS Intelligence, inefficient back-end processes in AP and AR departments have led to reduced cash flow visibility for 28 percent of companies surveyed.
Benefits of Virtual Cards for Your Buyers and Suppliers Include:
- The ability to negotiate better terms with their customers;
- More negotiating power to gain faster payments in exchange for discounts, preferential status, or guaranteed purchase volumes;
- Quicker payments, which puts more working capital to work; and
- The certainty of getting paid is particularly important for commercial transactions.
Unlocking the potential of virtual cards enables businesses to drive greater efficiency, transparency and certainty across their financial operations, all while reducing reliance on traditional and clunky accounts payable (AP) and accounts receivable (AR) processes.
How PayNation Can Help
Here are five ways that partnering with PayNation delivers revenue-generating benefits, helping you increase your business and residual revenue and capture a portion of the trillions of dollars in virtual card payments.
- Higher Satisfaction. Get more with PayNation’s B2B virtual card payments, resulting in greater client satisfaction.
- Omnichannel Payments. PayNation supports real-time, eCommerce, mobile, ACH, virtual and purchase cards anywhere goods or services can be purchased.
- Frictionless Integration. ERP, CRM and accounting software aligns seamlessly with PayNation’s payment solutions, ensuring a flawless user experience.
- Business Retention. Reduce churn and retain valuable business with a seamless payment experience.
- Data Protection. PayNation takes compliance and data protection seriously, meeting and exceeding industry standards for your peace of mind.
When you partner with PayNation, you become part of our extended family. We offer unwavering support, a dedicated integration team, and a revenue-sharing deal to set you up for success.
Want to get started with B2B digital payments today?
PayNation can help! Whether you currently have a payments processor or are new to B2B payments, connect with PayNation today and give your customers the digital payments support they need for today’s cutting-edge payment solutions.
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