A Comprehensive Guide to B2B Payment Gateways (And How to Choose the Right One for Your Business)

Developments in consumer digital payment methods have changed the payments landscape, and now business payment gateways are transforming to follow this lead. As businesses increasingly adopt SaaS models, many are seeking payment solutions that offer faster processing, strong security, and improved user experiences compared to traditional systems.

With global B2B payments growing steadily, businesses are exploring real-time and automated payment solutions. Many are evaluating fintech platforms, including Payoneer, to help meet these evolving needs. So how do you compare the different solutions on offer and make the right choice of provider for your payment needs?

How and why does B2B payment processing differ from consumer payment processing?

If you’re wondering why consumer payment processing led the way when it came to the development of digital payment technologies, there are plenty of differences that explain it.

• B2B transactions tend to be more complex than the simple single payments made by consumers. Values tend to be higher and there are more recurring payments, bulk orders and more complex invoicing requirements, with variants in payment terms, negotiated discounts, and delivery schedules. Long-term client/supplier relationships need to be nurtured and payment negotiations play an important role.
• High-value business transactions require tighter security and anti-fraud measures.
• There are more payment methods used by businesses, reflecting a variety of payment terms, with long payment cycles compared to the instant payments expected with B2C. Business payment gateways need to match the existing provisions from bank transfers, checks, electronic funds transfers, ACH payments and credit lines.
• International B2B payments are subject to complex regulatory and tax considerations, which call for more detailed invoicing and compliance with international trade regulations and contract law across jurisdictions. 
• Processing fees for B2B payments may be negotiable, depending on the value and volume of business.

What are B2B payment gateways and how do they differ from legacy payment systems?

With the evolution of digital banking, there has been a growing demand for secure payment gateways for business. Developed by fintechs, these innovative cross-border B2B payment gateways are providing the infrastructure and support that many legacy payment methods don’t offer.

Legacy payment methods include:

• eChecks – these are popular because they’re a cheap payment method using the ACH system, but they’re slow.
• Wire transfers – these can be quick and secure, and are a good way to transfer cash. However, there is little support for payment disputes and the fees can be costly.
• Credit and debit cards – quick and secure, but processing fees for credit card payments can be up to 4%. There’s also a higher risk of fraud compared to other methods.
• ACH/bank transfer – account-to-account transfers are cheaper than wire transfers or credit card payments, but they can take several days to process. Additionally, there’s little support for payment disputes, and fraud detection isn’t as strong as other payment methods.

To accept payments via these legacy methods, businesses need to have traditional bank accounts, and the disadvantages of some of these is the length of time which settlement takes.

The benefits of using a B2B payment gateway

Compared to legacy payment systems, modern online B2B payment solutions offer a wide range of benefits, particularly for businesses which need to make and accept global payments:

• Security – robust security measures are important for high-value business payments. B2B payment platforms employ a wide range of tools such as encryption, tokenization, and fraud detection systems to prevent unauthorized access and reduce the risk of data breaches.
• Scalability – B2B payment solutions are designed to support business growth by enabling SaaS providers and subscription-based businesses to manage recurring billing at scale. They offer capabilities such as automated recurring payments, subscription management, and support for multiple payment methods and currencies, allowing businesses to seamlessly collect payments from customers across different countries.
• Compliance – B2B payment platforms comply with required regulatory and security standards across jurisdictions, including Strong Customer Authentication and PCI DSS, helping businesses stay compliant as they expand globally.
• Global business payments – using a B2B payment solution is a straightforward way of making and receiving global business payments, allowing companies to extend their international reach. For example, Payoneer enables users to get paid by clients in 70 different currencies across 190+ countries and territories.
• Additional services – innovative fintechs continue to develop value-added services for their B2B platforms, including automation, analytics, and consultancy services. Many also include features like automated online invoicing, local receiving accounts, and multi-currency wallets to better manage FX conversion costs.
• Flexibility – digital payment platforms allow businesses to accept payments through a wide range of methods, including cards, bank transfers, and local payment options, making it easier to cater to diverse customer preferences.
• Automation – by using automation tools across the B2B payment process, businesses can improve efficiency and reduce manual errors. Payments become faster and more accurate, resulting in better cash flow, tracking, and control, along with enhanced security and reduced fraud risk.

How to choose the best B2B payment gateway for your business

There are plenty of business payment gateways to choose from, including Payoneer, PayPal, Stripe, Adyen, GoCardless, Checkout and many others. So how do you make the decision between them?

Of course, businesses can make use of multiple payment methods to make and receive payments, but employing a cross-border B2B payment processing platform that can handle all the methods you need will increase efficiency and minimize costs. For companies operating a SaaS model, automating subscription invoicing and collection is essential, so finding the right payment platform is particularly important.

Considerations when looking at B2B payment solutions:

• If your focus is on unlocking global growth, does the platform offer the range of currencies required, along with local receiving accounts and multi-currency accounts?
• How does the fee structure work with the volume and value of transactions you’re likely to make? Compare pricing, service charges, FX charges and individual transaction fees.
• How well will the payment gateway integrate with your existing accounts and management systems, and what additional services will it bring to the table?
• What level of automation does the platform provide across invoicing, recurring payments and payment collection?
• Does it comply with all major international regulations and financial standards?
• Does it operate robust security and anti-fraud measures?