Supplier-friendly card solutions expand the B2B value chain

Innovations are also making inroads into the B2B sector and offering companies optimized and efficient payment solutions.

These innovative B2B payment solutions are increasingly having a positive impact on both sides of the transaction. Take, for example, the development of B2B card issuance.

“We are really at the beginning of the chapter here,” Jill DochertySenior Vice President of Issuing at Nuveitold PYMNTS. “We have received certification for the systems, but are in the process of launching our first MVPs in Europe. It is important for our merchants to extend the payment flow, not only from an acquisition perspective, but also to help those same merchants pay suppliers and settle accounts payable.”

The importance of B2B card issuing both Buyers and suppliers are underlining its attractiveness and scalability. In the past, enabling supply was an obstacle that B2B Companies are faced with the challenge of introducing B2B card payments.

“In the B2B space, supplier support has always been a bit of a barrier,” Docherty said. “One barrier was that suppliers didn’t accept cards, so companies couldn’t pay them with cards.”

However, the ecosystem is evolving, with virtual maps becoming more mainstream and enterprise resource planning systems such as JUICE And sage to enable their use.

“The ecosystem has evolved … and we are now seeing an uptick in terms of supplier support,” Docherty said, noting that “there is a lot of demand for card payments on the buyer side, but there is not a comparable level of adoption on the supplier and seller side.”

Enabling B2B payments for buyers and suppliers

As the B2B payments landscape continues to evolve, companies must be given the tools they need to succeed. This requires integrating an area of future-proof considerations. One of these is fraud detection and prevention, areas where B2B cards shine.

Docherty highlighted the inherent security features of virtual cards, such as one-time parameters, setting the transaction value and specifying the counterparty of the transaction. These features automatically and inherently reduce fraud and risk while ensuring high authorization rates and successful card acceptance.

“We want the highest possible authorization our “With our technology and our solutions in the area of ​​acquiring, we can are able to Leverage many of these features and repurpose them for our output use cases and capabilities.”

Docherty spoke about the dynamics of the B2B card issuing business, stressing the importance of understanding merchants’ needs from an acquiring perspective. She explained that she sees opportunities in verticals such as B2B wholesale travel payments and expense management. In the travel sector, for example, virtual cards allow online travel agents to pay suppliers without upfront funding of transactions, using funds from their merchant acquiring accounts.

Expense management is another critical area, especially for companies with growing employee numbers and increasing travel needs.

Docherty explained that the importance of expense management depends on the size of the company.

“Smaller companies may leverage their consumer products and do manual reconciliations,” she said. “But as they grow, reconciliation of spend becomes more important.”

There is an opportunity to provide payment data to employees to improve expense tracking and management.

Overcoming B2B payment challenges through ecosystem benefits

Despite the emergence of virtual cards, plastic cards have their place in the payment ecosystem.

“Plastic cards are alive and active because we have omnichannel experiences,” Docherty said.

Physical cards offer benefits such as loyalty programs and, in certain scenarios, a better customer experience.

“It’s pretty cool to have a plastic card,” she said, stressing the continued relevance of physical cards in an increasingly digital world.

Looking ahead, she said she sees a future where the lines between different payment types are blurred and the focus is entirely on enabling seamless transactions for businesses.

“Innovation will lie in the blurring of boundaries,” she said, stressing that the development of different payment methods will continue to be driven by the need for cost-effective and user-friendly solutions.

One of Nuvei’s unique value propositions is its dual role as an issuer and acquirer in Europe. Docherty said she believes this dual role improves the payments experience for businesses.

“We offer issuance services that help our dealers by providing a revenue stream, a smooth cash flow and a tailored customer experience,” she said.

This integrated approach enables Nuvei to extend the payments value chain, benefiting merchants through improved working capital and liquidity savings.

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