B2B payment systems and their opportunities – challenges for the future, wee is well equipped because win-win situations arise, in conversation with Professor Dr. Leo Schrutt, Chairman of the Board of Directors wee-Operations in Swiss Fintec Invest AG, Switzerland
Whether B2B or B2C – the fast and secure organisation of payment flows and customer loyalty concerns both groups. The term “business-to-business” or B2B refers to the business relationships as well as the communication relationships between two or more companies. The customer base of these companies is limited to business with corporate customers, regardless of whether they offer services or goods. A good example is the DIY store, which receives its goods from a wholesaler or intermediary. Another well-known business relationship is “business-to-consumer”, colloquially known as B2C. The main difference between B2B and B2C lies in the business partners, B2C companies focus on the end consumer. The sale of food to private customers is a classic example of this business relationship. No matter how you look at it, secure and fast payment serves everyone.
Many paths lead to the goal
In terms of payment technologies, end consumers and business participants already have the opportunity to choose freely between many different payment methods, with purchase on account being one of the most popular payment methods in Europe. The customer takes the goods or services immediately, but does not have to pay the invoice until a later date. The B2B purchase on account basically follows the same principle; here, too, the goods or services are paid for after receipt. Unlike in the B2C sector, this payment method presents B2B companies with certain challenges.
Insolvency risk in the case of advance payment
The first problem can be traced back to the customer base. B2B providers usually have a small customer base and are therefore all the more dependent on timely payment. Furthermore, companies take a higher risk with B2B invoice purchases than B2C providers, which can be traced back to the amounts involved. On average, the value of B2B invoices is 1,900 euros. If, for example, a customer files for insolvency after concluding an invoice purchase, the probability that the invoice will be paid at all is low. Of course, companies can fight to have the outstanding invoices settled, but this involves a lot of effort, long waiting times and high legal fees. For this reason, it is important to check the creditworthiness of companies in advance before accepting purchase on account. Ideally, the credit check should not delay the purchase process. Finally, the advantage of the online shop is that it is fully automated, always accessible and leads to the conclusion of the purchase with just a few clicks. For a modernisation of B2B invoice purchasing, this means that a plug-in is needed for online shops that can be quickly integrated into the online shops, performs a reliable risk check, works quickly and is fully automated. So for both private trade and business relationships, extreme effort is required these days.
Modernisation of B2B payment systems is long overdue
wee connects innovative payment systems via mobile phone. Secures discounts and networks online and offline trade. Professor Dr. Schrutt says: “The wee group has built up a well-known global purchasing community under the brand name “wee”. This weeCommunity unites renowned brands and local retailers on its online platform, the future growing marketplace. wee offers an innovative alternative to traditional loyalty programmes: Registered users collect wee for every purchase at a wee partner, which can then be redeemed for new purchases at any offline wee partner or withdrawn via bank transfer in the form of real money.”
Conclusion: Think globally, act regionally and generate local success with wee technology
The wee Group uses digitalisation as a thrust for all participants, both merchants and customers. The wee mobile payment system is unique with the idea that instead of points, money, in the form of cashback, is collected and at the same time stationary trade is strengthened. “With the wee system, companies, small boutiques, cafes or individual shops have the chance to participate in digitalisation with little effort and costs. wee has the platform for digitalisation for companies and in particular small retailers, works worldwide.
The generated discounts can be offset against purchases in the stationary trade, thus strengthening the local region. The wee vision: simply save locally and online and consciously strengthen the local retail trade. In addition, city centres are revitalised, which should be an even greater challenge after the Corona pandemic,” Professor Dr. Leo Schrutt points out.
Student & Blogger
About the author:
Viktoria Akopjan is studying Health Economics with a specialisation in Hospital and Pharmacy Management at the Apollon University of Applied Health Sciences. Her interests relate to nutritional sciences, public health and digital development in the healthcare industry. As a working student in the field of human resources development, she is gaining experience for the change to digital transformation.
Swiss Fintec Invest AG
Phone: +41 71 688 68 63
Represented by: Dr. Leo Th. Schrutt
The wee Group, based in Bottighofen, Switzerland, connects innovative payment systems via mobile phone. Secures discounts and networks online and offline trade. The weeCommunity unites renowned brands and local retailers on its online platform, the future growing marketplace. wee offers an innovative alternative to traditional loyalty programmes: Registered users collect wee for every purchase made at a wee partner, which can then be redeemed for new purchases at any offline wee partner or withdrawn via bank transfer in the form of real money. More information at: https://www.wee.com
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