The B2B vs. B2C divide
Efficient e-commerce represents a major opportunity for B2B companies. Already, the global B2B online sales market is more than four times larger than its B2C counterpart. Yet, while B2C buyers enjoy a variety of seamless payments options – such as tap-to-pay and buy-now-pay-later (BNPL) – B2B transactions are largely limited to card or bank transfer, which both come with limitations: cards can introduce added costs and may not suit larger transactions, while bank transfers usually require time-consuming but essential manual processes.
A major reason for this gap is the complexity of B2B transactions. Unlike B2C transactions, where customers pay at checkout then receive their goods, B2B has credit terms in its DNA: buyers want to pay on invoice, not upfront, with the expectation that sellers extend credit. The challenge is how to digitalize this process – granting credit, managing terms and chasing payments – without moving to an upfront payment model.
Sellers must also perform know-your-business (KYB) checks with each purchase, such as credit assessments and fraud screening. These steps can take weeks to complete, during which time a buyer may choose to take their business elsewhere. In addition, most of the credit approval and collections process remains manual, making it difficult to offer a seamless, B2C-like experience modern buyers look for.
Why old solutions are no longer enough
One challenge in improving B2B payment methods is outdated understandings of the role of payment in B2B transactions. In this space, the payment process has traditionally been seen as an afterthought, often left to accounting rather than viewed as a strategic priority. This mindset is starting to change as more sellers recognize the crucial role of payment in supporting the customer experience and avoiding operational issues. Because operational issues tend to arise at the payment stage, this process needs to be truly seamless – making it the most important part of placing an order.
Even so, many businesses choose to operate offline. Around 73% of B2B businesses still use manual payment processes, largely because digital platforms lack the capacity to handle the complexities tied to B2B transactions, and businesses themselves see the issue as complicated to resolve.
This is why a strong omnichannel setup – one that combines multiple sales and communication channels in one place – is becoming essential for B2B companies. In addition to creating a clearer view of buyer behavior and credit usage, it opens the door to customers across new industries. While omnichannel strategies once saw interest mostly from industries such as IT and hardware, it’s now expanding to sectors like service and food. As more buyers, especially small and medium-sized businesses (SMEs), demand flexible, multi-channel growth, omnichannel capabilities are becoming a must.
Bringing B2B up to speed: the power of automation
To succeed in today’s market, companies must adopt an integrated, cross-channel approach – especially as e-commerce continues to grow. That’s why a unified platform is key to consolidating all buyer activity, whether online or in-store, into a single, real-time view of credit status and limits.
Allianz Trade pay is our answer to an all-in-one B2B payment approach, bringing together credit risk assessment, fraud detection, trade credit insurance and financing in one platform. With it, businesses can offer payment terms at checkout and, if the buyer fails to pay, Allianz Trade steps in to cover the loss.
What makes this solution so useful in today’s market, where speed is paramount, is its automation. When a buyer creates an account or places an order, Allianz Trade uses application programming interfaces (APIs) to securely gather company data from trusted sources by enabling communication between different software systems. This simplified process enables instant KYB checks and credit risk assessment, without requiring buyers to upload documents or wait days for approval.
For example, let’s say a manufacturer selling to a new distributor in a foreign country wants to offer payment terms at the point of sale. Allianz Trade pay can instantly verify the distributor’s creditworthiness and automatically apply insurance coverage, enabling the manufacturer to confidently sell to the buyer without manual credit checks or added paperwork. This is especially valuable when bringing on new customers or entering new markets, where a smooth onboarding process can be key to closing a sale and building long-term relationships.
Additionally, buyers and sellers alike benefit from the global reach and strong financial backing of the Allianz Group. With coverage across more than 90% of global GDP and deep expertise in risk management, Allianz Trade brings a level of trust that few players in the B2B space can match.
A simplified approach for greater customer impact
B2B payments are no longer just about sending invoices and waiting weeks for payment. In a digital-first world, sellers need tools that are fast, flexible and built for businesses who want to grow.
Through Allianz Trade pay, we’re helping bridge that gap – helping companies offer instant credit terms, bring on new customers and grow into new markets while saving time and driving sales. For ambitious manufacturers, distributors and marketplaces, this solution goes beyond a payment method. It offers a more flexible way to scale and simplify operations – and ultimately build stronger customer relationships.
