Embedded payments are a revolutionary development in the world of business-to-business (B2B) transactions. In recent years, the adoption of embedded payments in the Middle East has been on the rise, providing numerous benefits for both buyers and suppliers in the B2B market.
Embedded payments refer to the integration of payment functionality directly into a company’s business process or software, such as their ERP or accounting platform. This eliminates the need for manual data entry or payment preparation and allows for seamless, secure transactions from a buyer to its suppliers, without the need to log in and out of different platforms. The result is a more streamlined and efficient payment process, which can help to improve the overall payment experience.
For B2B buyers, the use of embedded payments can help to reduce the time and effort required to make payments. By eliminating manual data entry, buyers can avoid errors and mistakes that can lead to delays and increased costs. Additionally, embedded payments can help to reduce the risk of fraud, as transactions are processed securely from within the buyer’s existing software.
Embedded payments can also help B2B suppliers to receive payments early and efficiently. By automating the payment process, suppliers can reduce the time and effort required to process invoices, and chase and wait for payment; which can help to improve their cash flow. This is particularly beneficial for smaller businesses, which may struggle to manage the financial impact of longer payment cycles and the subsequent strain on their cash flow.
The adoption of embedded payments in the Middle East is being driven by a number of factors.
Firstly, the rise of digital transformation in the region has led to increased demand for innovative payment solutions. This is particularly relevant in the B2B sector, where companies are looking for ways to streamline their payment processes and improve the overall customer experience. This began with the introduction of electronic real-time payments functionality, now offered by most banks. However, the continued need for innovation has led to a rapid increase in the use of credit card payments in the B2B space. Using a credit card to pay suppliers has obvious benefits for the buyer (55 days interest-free credit, rebates/cash back, etc); and now with solutions like Swipe2B, those card payments can be made automatically (but more importantly) to suppliers who do not accept cards.
A rapidly growing B2B e-commerce market is driving demand for more efficient and secure payment solutions. According to a report by PayFort (Amazon Payment Services), the B2B e-commerce market in the Middle East is set to reach $7.8 billion by 2023, which represents a significant growth opportunity for companies operating in the region. This rapid growth is making embedded payments a highly relevant topic for B2B transactions in the Middle East. In a recent Mastercard survey of Middle Eastern businesses, it was found that 74% of companies believe that the adoption of digital payment solutions is essential to their future success. This highlights the importance of embedded payments in the region, as they offer a way to streamline payment processes and improve the overall customer experience.
The adoption of embedded payments in the Middle East is also being driven by the need for improved data security. With cyber threats on the rise, companies are looking for solutions that can help to protect their sensitive financial information. Embedded payments provide a secure and efficient way to process transactions, which can help reduce the risk of fraud and data breaches.
Embedded payments offer numerous benefits for both buyers and suppliers in the B2B market in the Middle East. From improved efficiency and security to increased customer satisfaction, the use of embedded payments is set to become an increasingly important part of the business landscape in the region. Companies that are looking to stay ahead of the curve in the B2B market should consider incorporating embedded payments into their business processes, in order to take advantage of these benefits and stay ahead of the competition.