Features to Look For from Your Payment Provider as a B2B eCommerce Business

Jan 20, 2022
6 minutes of read


Features to Look For from Your Payment Provider as a B2B eCommerce Business

Having a predictable and secure cash flow is crucial for any online B2B business looking to enter the digital, global market. Though 51% of B2B payments still occur via cash, B2B payments are set to grow to USD 70 billion by 20301. This is on top of B2B eCommerce already being 5 times larger than B2C eCommerce according to Statista’s report for the year of 2021.2

Hence, choosing the best digital payment provider is important to make sure you are able to enter a market at a competitive level. After all, selling like a local in your destination market can help distinguish your brand from other global players trying to enter the region.

Tazapay offers multiple payment options globally, with local methods implemented in growing Asian markets in SEA and India. If you’re looking for a solution to manage payments in a single named account, contact us now:

Moreover, your clients also get their much-needed flexibility in making and receiving payments the way they like, making them more likely to stick with you to conduct business. So, how do you choose the right payment provider from a plethora of options out there?

We list 5 features for you to consider when selecting your B2B payment solution.

Offers Multiple Payment Methods in your Target Market

It goes without saying that the more options there are for buyers in terms of payment methods, the easier it is for potential clients to deal with your business. As such, knowing the B2B payment trends of your target market is important.

For example, credit cards (77%) and direct debit (35%)3 are the preferred methods of payment in Singapore. Additionally, QR codes and mobile wallets4 are also popular due to low platform fees and high brand trust of local banks5. For instance, PayNow, which enables QR code transactions, is run by DBS, one of the incumbent banks in Singapore. It also has a fixed fee of $0.20 per transaction. This rate also beats out most debit and credit card transaction fees and other global online payment platforms.

Most popular payment methods for online purchase in Singapore (Statista)

In contrast, the Philippines has a population that is largely unbanked. While ePayment adoption is fairly new, the Filipino government and Bangko Sentral ng Pilipinas (BSP) are working towards having more financial inclusion in the archipelago.6 These include employing more micro-banking offices, electronic money issuers, remittance agents, and launching an ePayments service called InstaPay.

Hence, having a payment provider that offers multiple payment methods in your target market is vital. On top of that, if your selected payment provider stays up to date with the latest payment methods in your target country, it will help give you an edge from your competitors.

Provides Security in Transactions

With the online environment being as dynamic as ever, any of your online transactions should also be protected so that you and your customers’ data remains safe. Moreover, having a protected payment gateway also means you’re less likely to fall for online fraud. Payment gateways typically do this by using SSL encryption.

SSL is the abbreviation for secure socket layer. This technology encrypts sensitive financial details like login IDs, passwords, bank data, and other sensitive information during a transaction. Through this encryption, SSLs make it almost impossible for malicious, unauthorised agents and hackers to decrypt and steal data.

To find out if your payment provider uses SSL, check their domain name for HTTPS instead of HTTP, as the S in HTTPS stands for “Secure” in “Hypertext Transfer Protocol Secure”.

While having online security during your transactions is vital, it also helps to have a payment provider that can also provide an ease of mind before you transact with another party. These can come in the form of a robust Know-Your-Business (KYB) or Know-Your-Customer (KYC) process, which is especially useful for cross-border B2B transactions that deal with large ticket items. KYB/KYC processes are put in place by payment providers to identify and verify the legal representative of a business or customer, and are typically necessary in order to pass any compliance checks from monetary authorities.

Many customers may think of KYB/KYC as a bureaucratic hassle, but these act as a layer of protection from the payment company to verify that your other parties are not money laundering or conducting other illegal transactions.

Ability to Create Milestone Payments with Escrow

Releasing payments after meeting certain obligations can provide an additional layer of protection for both the buyer and seller. By setting an agreement for milestone payments, businesses transacting large ticket items, or freelancers whose work requires multiple revisions, can ensure cash flow as the project progresses.

While these can be agreed upon manually, offsetting the burden of keeping track to digital tools like online escrows can help you save time and money.

Online escrows act as a neutral third party that holds onto your funds and disburses them when conditions from sellers and buyers have been met. Having customisable milestone payments for digital escrows will mean skipping any extra paperwork to keep track of funds as the information will be readily accessible online.

What’s more, the escrow itself can serve as a legally binding contract for both parties, and thus, protecting the interests of both buyers and sellers.

5 features to look for from a payment provider as a B2B business

Integrates easily with your eCommerce platform

With more businesses becoming digitally native, having a seamless payment process is a surefire way to keep clients coming back to you. If a payment provider has any form of API integrations, you’ll be able to customize the checkout experience to suit your business’ and clients’ needs.

However, to ensure that the API features are aligned with what you have, you or your tech team will need to go through the payment gateway’s API documentation to see if your data points and processes can integrate seamlessly. This is also on top of other requirements you need to look out for such as supported currencies and payment methods.

Some payment companies also offer to waive integration fees depending on your tech and business requirements.

If your platform is hosted on eCommerce web builders like Magento or WooCommerce, payment providers that have ready to install apps will also make integrating B2B checkout to your business much simpler.

Should the documentation or the apps be more complicated to handle, you can approach the payment company’s tech operations team to assist in integrating your business’s platform with their payment solutions.

Tazapay also has online checkouts for Magento & WooCommerce built platforms. Request for your API access from your dashboard!

Has a responsive customer service team

Outside of the 4 features to look for from a technical standpoint, a payment provider that has a responsive team of customer service representatives and/or account managers will help ease any worries and by extension, help to retain your clients for the long run.

For instance, a payment provider’s account manager could be proactive in keeping up to date with ad hoc changes that may affect shipment dates, and therefore the document verification needed for an online escrow. They can then reach out to all parties involved in the transaction to update the status of the shipment and funds transfer to reassure the customer and your business.

When it comes to choosing any payment provider, it helps to take stock of what you currently have and what your cross-border expansion plans are. Going into a new market with a tailored payment gateway will help you stand out and win potential clients from the ease of doing business with you.

With Tazapay, you can take your business beyond borders seamlessly. Not only does our complete B2B payments platform fit the bill with the features mentioned above, we also offer low platform fees of no more than 1.8%, competitive FX rates, and lightning-fast settlements in 2 business days upon verification of contractual obligations. Contact us now to find out how we can help to scale your business.

1. Globe News Wire: B2B Payments Transaction Market Size to Worth Around US$ 70 Bn by 2030
2. Statista: In-depth report on B2B eCommerce 2021
3. Statista: Singapore’s most popular payment methods for online purchases
4. JP Morgan: 2020 eCommerce trends report - Singapore
5. Euromonitor: Financial Cards and Payments in Singapore
6. Payments Landscape in the Philippines

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Features to Look For from Your Payment Provider as a B2B eCommerce Business
B2B Payment

Features to Look For from Your Payment Provider as a B2B eCommerce Business

Jan 20, 2022
6 min of read

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