The business to business payment is the latest flourishing trend observed among the businesses, especially on the international level. Many companies now prefer to pay directly to the companies they are dealing with, instead of carrying the transactions through any bank. This direct payment method is beneficial for both sides in many ways.

The Unconventional B2B Transaction

The transaction of money in today’s world happens for two reasons;

  • A customer pays some company for their product or services
  • A business pays some other business for their products or services

B2C or C2B

Business to Customer or Customer to Business payment scenario is the conventional payment scenario, where a customer pays money to a firm that just provided its services to the customer. This scenario of payment is pretty well understood and is the bedrock of modern commercialization.


In the 20th Century, companies decided that to achieve their sales target and to improve their productivity, the customer needs to be satisfied at all costs. Hence, the business became “Customer centric”. In order to satisfy the customers so that they would persist with them, companies had to adapt policies that would help them keep their customers in line. Later on, companies realized that to maximize their profits, it would be better if instead of molding their business around customers, they balanced it between customers and their own needs. Hence, the B2B payments or the Business to business payments were devised. Business-to-business (B2B) means a scenario where one business makes a profitable deal with another. This usually transpires when:

  • A corporate is collecting resources for their manufacturing process, let’s say, a food manufacturer acquiring sugar.
  • A corporate requires the facilities of another for functioning details, say, a food manufacturer paying an accountancy organization to review their capitals.

The general capacity B2B (Business-to-Business) transactions is considerably greater than the capacity of B2C transactions. The chief reason for this is that in a usual supply chain there will be numerous B2B dealings concerning sub modules or resources, and only one B2C transaction

In B2B payments, a written invoice is always a requirement, and the payment is done on the basis of credit provided by the supplier. In business to business payments, buyer pays the cost of payment and paper checks dominate the transaction.

Saving service charges

The banks charge their clients a certain amount of money in terms of service charges. The companies opting for B2B method save these charges, especially in Export to Europe. Also, in many cases, the companies save the percentage of money that the banks keep when making international transactions. B2B payments rule out the third party, the banks in most cases, which lessen the amount of money to be paid to the one doing the transaction of money, thus saving a considerable amount of money.

Increasing profit margin

Having saved the processing fees and other service charges, obviously the companies make more profit in case of Global b2b payments. This directly has an impact on the fiscal budget of the business. The transfer of money from one country to another involves currency exchange.  Huge amounts of money can include huge losses, due to the constantly fluctuating currency rates, when transferred through banks (like Bank Account in Italy), which can be avoided or at least limited to minimum when carrying out B2B payments.

Flourishing personal businesses

The B2B payments encourage personal businesses as they are not as costly as the bank transactions. Individuals can explore ways to deal with banks and other monetary agencies in lieu with their own benefits; looking for the best bargain they have to offer. One can always find a bargain to avoid unnecessary expenses when dealing with other businesses and making B2B payments.

Ethical aspects

The security issues might be a reason for businesses when making B2B payments. But in long term businesses, they actually serve as a strengthening factor between the companies doing business with each other. The trust that they develop over the period of time is not just a corporate matter but also has positive personal impacts on the individuals involved in the process. People tend to be friendlier, affectionate and open with each other.



Cash Sender

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