There’s a good chance your customers use digital wallets in their personal lives along with the other 53% of consumers who prefer them over traditional payment methods. Digital wallets, which store funds and payment methods digitally, provide speed, convenience, and enhanced security while making it easy to track payment histories and shopping habits.
Consequently, more than 5.3 billion people are expected to use digital wallets by 2026. Businesses are beginning to follow suit, as The Federal Reserve reported a 31% increase in digital wallet use by U.S.-based companies in 2023.
This blog explains how enabling customers to manage and use digital wallets benefits your B2B company.
Expedites Payments
Getting paid on time remains a pain point in the B2B space, with Atradius reporting more than 50% of invoiced sales were overdue in 2023. Delinquent payments drive up DSO (Days Sales Outstanding), suppress cash flow, and make for a stressful work environment.
Once your customers easily set up their digital wallet, paying a bill is as simple as clicking a button. These payments arrive in your account immediately or within a day or two, unlike checks that travel through the mail and require time to clear. Another feature, AutoPay, enables you to simply draft recurring fees from your customer’s preferred payment method stored in their digital wallet, ensuring you get paid on time and they avoid late fees.
Eliminates Check Usage
Check fraud is expected to cost companies $24 billion this year. Though check usage is steadily declining, it remains a popular form of payment in the B2B space simply because companies don’t have other options.
Digital wallets eliminate the risk of check fraud because they eliminate check usage. By enabling customers to manage and use a digital wallet, you’re providing them with payment methods through ACH (Automated Clearing House) and with credit cards that are speedier. Unlike checks, digital payments can’t be stolen from mailboxes and altered, making them a far safer option as well.
Simplifies the Payment Process
Customers are obliged to pay their bills, regardless of how easy it is. But they’ll appreciate a streamlined, organized process that saves them time.
Digital wallets provide flexibility and convenience, allowing payments to be made from anywhere. Whether using a phone, tablet, or laptop, customers can complete transactions without hassle.
Payments made through digital wallets provide peace of mind that funds are transferred on time and help create an experience that enhances customer satisfaction and encourages timely payments.
Strengthens Buy-Seller Relationships
It's important to find new business. But recent reports found that acquiring new customers is five times more expensive than retaining current ones, so it’s important to stay loyal to those who have been with you since the beginning.
Unlike cash and checks, digital wallets provide data that helps you track buying histories and spot patterns, enabling you to assist customers on decision-making and gain insight into what products they prefer.
Payments made through digital wallets are tokenized and encrypted, adding another layer of protection your customers will appreciate. These payments are easy to track and reconcile, bringing a quick resolution whenever there is a billing discrepancy, and customers will appreciate not having to spend money on stamps and envelopes.
Environmentally Sound
ESG (environment, social, and governance) continues to grow, especially in the B2B space, where companies want to deal with sellers who care about sustainability.
Accepting payments through digital wallets means you won’t fill wastebaskets with envelopes, paper receipts, and photocopies of old checks, nor will your customers. Digital wallets reduce your company’s carbon footprint while making it easier than ever to make and accept prompt payments.
Bill360, the leader in B2B payments and AR (accounts receivable) automation, enables your customers to set up and manage their own secure digital wallets through a self-service buyer portal, making it easier than ever for them to make prompt payments that reduce your DSO, strengthen cash flow, and provide you instant access to the funds you’ve earned.
Bill360 requires less than an hour of training and syncs with existing accounting software like QuickBooks and Xero in minutes, and we’re always updating our platform with the latest features and functionalities to help B2B companies like yours grow.
