# Embedded payments for B2B merchants and marketplaces: 4 considerations
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-28
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Unlock the Future: Exploring the Growth of B2B Embedded Payments
Meta Description: Learn how embedded finance is transforming B2B payments, driving increased revenue potential and customer loyalty with seamless digital procurement and
URL: https://financedigest.com/embedded-payments-for-b2b-merchants-and-marketplaces-4-considerationshtml

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_By **Brandon Spear,** CEO, TreviPay_

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/picture119-1736837744618-compressed.jpg)

_Embedded finance allows non-financial businesses to make_ **payments and other financial services simply disappear into the background** **of the solution being offered to a customer** **.** And its growth trajectory is staggering: the total addressable market for embedded finance will top $7 trillion globally by 2030 with the embedded payment sector in the US forecast at a [$300 billion revenue opportunity.](https://www.simon-torrance.com/blog/EmbeddedFinance1)

The most visible example of embedded payments that has been experienced by most is Uber, a seamless transaction that actually requires no transacting on the consumer’s part. B2C embedded payments have proliferated from there. Now, unsurprisingly, [B2B buyers who require a variety of payment](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") options, including net terms, are beginning to expect that their purchases be transacted with the ease and convenience of an Uber payment.

“Three years of consumer behavior change was squeezed into one year in 2020,” [wrote](https://go.forrester.com/blogs/what-i-see-coming-for-the-channel-2021/) Forrester Principal Analyst Jay McBain. “Consumers are now demanding online experiences; happily virtual; wanting [seamless digital](https://www.financedigest.com/insuring-a-seamless-digital-transformation.html "Insuring a seamless digital transformation") procurement and provisioning; and wanting everything at the click of a button. The delta between [B2C buyers and B2B](https://www.financedigest.com/what-b2b-businesses-can-learn-from-b2c-e-commerce.html "What B2B businesses can learn from B2C e-commerce") buyers has collapsed during the pandemic. It’s all about speed, convenience, and remote, whether the buyer is [acquiring a Peloton or a software](https://www.financedigest.com/iris-software-group-acquires-ps-financials.html "IRIS Software Group acquires PS Financials ") product.”

These disruptions and revolutionary changes intensify the [competition to “own” B2B customers](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition"). B2B companies must [develop a future-ready and resilient payments](https://www.financedigest.com/payment-community-engagement-in-the-development-of-the-emv-specifications-increases.html "Payment Community Engagement in the Development of the EMV Specifications Increases") strategy in response. And while B2B embedded payments require more expertise and work to satisfy, B2B sellers and marketplaces that [meet these heightened expectations will establish stickiness and loyalty with customers](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS"), and enjoy cost savings, increased revenue potential and better cashflow.

If your [customers don’t already expect their B2B payments](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments") to be invisible, they will soon. Embedded payments can enable that invisibility; however, [building the capability requires](https://www.financedigest.com/whats-required-of-accounting-to-build-a-better-tomorrow.html "What’s required of Accounting to build a better tomorrow") significant work, technical expertise, and a firm grasp of all of the costs that can arise. Here are four important considerations:

- **[B2B payments should feel like B2C payments. Merchants](https://www.financedigest.com/is-compliance-to-psd2s-sca-a-bridge-too-far-for-b2b-merchants.html "Is compliance to PSD2’s SCA a bridge too far for B2B merchants?") that can do this will meet the expectations of the digital-first buyer**. This can be difficult because B2B payments are far more complex than the transactions and [processes](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") that enable B2C embedded payments, which tend to be performed by a single stakeholder (a consumer) using a single payment method (a credit card). Any given B2B transaction may involve multiple stakeholders (the purchaser, the budget owner, the procurement group, the [accounts payable team](https://www.financedigest.com/what-can-accountants-learn-from-great-britains-olympic-team.html "What can accountants learn from Great Britain’s Olympic team?") and others) and numerous different payment options (net terms, purchasing cards, and credit cards, among others). Each of those B2B purchasing stakeholders has unique needs and preferences that must be met, and each [payment option comes with a unique set of procedural and technological](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016") integrations to be managed. Smart [B2B embedded](https://www.financedigest.com/why-embedded-finance-will-be-integral-in-the-future-of-b2b-marketplaces.html "Why embedded finance will be integral in the future of B2B Marketplaces") payments should help the merchant improve cashflow by allowing buyers to receive invoices daily, weekly or monthly and make payments on terms that they control. It is also critical to allow for ways to add data, like PO numbers, to invoices and [support integrations](https://www.financedigest.com/supporting-apple-pay-integration-in-japan.html "Supporting Apple Pay Integration in Japan") into Procure-to-Pay and Enterprise Resource Planning platforms. The speed and ease of these embedded payments should mask the significant amount of transactional plumbing that [must be installed and orchestrated behind](https://www.financedigest.com/finance-execs-must-understand-ai-or-risk-falling-behind.html "Finance execs must understand AI or risk falling behind") the scenes.
- **Instant decisioning and credit are key and will help merchants attract B2B buyers and build loyalty.** The most effective embedded [payments experiences](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ") make a company easier to do business with by letting the buyer interact, and transact, on their preferred terms. Business [customers prefer to purchase](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") on terms and spend more, more frequently when they have a dedicated financial relationship and credit line with a business **.** The advantage over competition is significant when customers know they can painlessly purchase from a merchant once they’re ready for more stock. But the credit [issuance cannot be too cumbersome or slow](https://www.financedigest.com/investors-seek-higher-returns-as-catastrophe-bond-issuance-slows-during-q2-according-to-aon-study.html "INVESTORS SEEK HIGHER RETURNS AS CATASTROPHE BOND ISSUANCE SLOWS DURING Q2, ACCORDING TO AON STUDY"). In the move to digital- first interactions, instant decisioning is critical to grab the buyer and the sale.

- **Don’t forget A/R when building an [embedded finance](https://www.financedigest.com/online-marketplaces-embracing-embedded-finance-to-benefit-both-customers-and-vendors.html "Online marketplaces: embracing embedded finance to benefit both customers and vendors     ") strategy**. All businesses are in the midst of digital transformation and a key part of the embedded payment [evolution](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") in B2B merchants is extending to accounts receivable with a 100 percent digital experience and automated onboarding. This can deliver significant [time and cost-savings to the merchant – eliminating the need to email forms, wait days for credit decisions, or spend human time on procedures such as creating PDF invoices or performing manual bank](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") reconciliations.
- **Protect against the [growing threat of business](https://www.financedigest.com/5-considerations-when-trying-to-grow-your-business-during-a-pandemic.html "5 Considerations When Trying to Grow Your Business During a Pandemic") identify theft**. As more customers are acquired online and globalization accelerates, there is a growing risk of business identity theft and other forms of digital fraud **.** When implementing an embedded payments strategy, it is important to work with a partner who can reliably enhance the [relationship between buyers and sellers by providing sophisticated fraud detection](https://www.financedigest.com/the-clues-to-detecting-fraud-are-hidden-in-relationships.html "THE CLUES TO DETECTING FRAUD ARE HIDDEN IN RELATIONSHIPS") processes and maintaining a strong track record for risk decisioning.

B2B merchants must be closely in tune with the revolutionary changes to customer experience, engagement and convenience embraced by the rising digital generation and accelerated by COVID. B2B customers are also consumers after all, and they now have the same heightened expectations for seamless, invisible [payments in their B2B purchasing that they have come](https://www.financedigest.com/e-commerce-without-frontiers-not-when-it-comes-to-payment-2.html "E-commerce without frontiers? Not when it comes to payment") to expect in B2C transacting.  B2B merchants must now make it as easy as possible for customers to transact with their brand by embracing the [value an embedded payments](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation") capability delivers.

**_About Author:_**

_Brandon leads_ _TreviPay_ _with expertise in managing large, diverse global teams. His strength is discerning and focusing on the most important [challenges facing](https://www.financedigest.com/overcoming-challenges-faced-by-women-in-business.html "Overcoming challenges faced by women in business") an organization at a particular point in time and unifying all stakeholders behind accomplishing a set of specific goals. Brandon has a unique ability to connect across all levels of an organization, motivate staff with diverse skill sets, while ensuring a common alignment and results._


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