By 2030, experts predict that the B2B payments transaction market size will be worth nearly $70 billion. It turns out businesses pay each other sizeable amounts of money. Certain industries pay more than others, with the highest number of B2B payments coming from manufacturers and insurance.
Businesses pay each other in several ways, ranging from cash and paper checks to wire transfers and credit cards. Some even use cryptocurrencies to pay their fees.
Now, another method for B2B payments has come up. Virtual cards can simplify your B2B electronic payments and help your business become more digitized.
If you’re not sure why you should use these cards, keep reading! We’ll explore their benefits in the guide below.
Increased Security in Your B2B Payments
In 2020, 74% of organizations were targets of payment fraud. Unfortunately, business relations require enhanced security to remain on stable ground.
Many B2B payment solutions leave businesses vulnerable to this sort of threat. For example, many company employees practice card sharing. This practice runs high risks of theft and data breaches.
Fortunately, virtual card purchases can protect you from this threat. Virtual business cards link to a wallet that’s separate from your company’s primary bank account. You can also store these cards in your company’s digital wallet to provide more security.
Improving Cash Flow
Virtual cards are a faster method of electronic payment. This speed allows businesses to log more accurate data about their business cash flow.
Using virtual cards now can help your business optimize its working capital. In doing so, your finance teams become free from holding onto funds for longer than necessary.
Real-Time Budget Information
We’ve already mentioned that virtual cards can give you faster and more accurate information about your budget. However, there are other ways virtual cards can make your budget more efficient.
Neobanks and other companies allow you to manage your virtual card spending limits. From there, you can break up your budget and allocate different expenses to your virtual cards instantly. This way, you can avoid having to manage several payment accounts.
Greater Access to Company Funds
You can also use virtual cards when your team needs to make company purchases outside the traditional invoice payment. Companies can issue a virtual card with a single click and track their transactions. From there, they can ensure that the card doesn’t overspend.
Likewise, your company cards can also eliminate the need for petty cash. This way, your business can become cashless.
Cashless businesses become more efficient. But, they also have greater spending visibility for any onlookers. This way, they become more transparent in their dealings and boost their PR.
Start Using Virtual Cards for Your Business Today!
Virtual cards can simplify your B2B payments in several ways. They provide more accurate budget data for your organization’s planning. Likewise, they can make quick transactions that a manager can track.
So, don’t hesitate! Implement virtual cards in your business. Before long, you’ll see noticeable improvements in your efficiency.
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