what is a b2b payment network?
A B2B Payment Network is exactly what it sounds like - it's a network (similar to Venmo or Zelle) that facilitates payments between businesses. Currently, the most popular way to digitally transfer funds is through an ACH service which takes about 2-3 days to clear.
is venmo a b2b payment network?
When you think of payment networks, you most likely will think of Venmo or Zelle. These, however, are P2P, or peer-to-peer, payment services. Services like these make it easy and fast to transfer money between individuals, but they do little to service the business sector.
How are b2b & p2p payments different?
The average person isn’t going to be transferring tens of thousands of dollars to a friend in a single day. Businesses, though, have an average transaction value of $7,500. B2B networks feature higher transfer limits to accommodate corporate expenses and those funds are approved quickly for almost immediate availability.
Since P2P transfers are between individuals, there usually is little-to-no documentation of that transaction. In B2B however, there are POs, invoices, payment approvals, and receipts to issue for each and every transaction. This creates an average 45-day-gap between invoice-sent & payment-received. B2B networks must be equally thorough with set procedures and step-by-step verifications to guarantee each party is well-documented and on the same page.
Data security is a top concern now that technology has evolved so intensely. 2018 saw over 4.5 billion records compromised through data breaches within a six-month window. Despite that information, the funds on P2P Networks are not FDIC insured.
Businesses are at higher risk with fraudulent activity because of the dollar values at stake. A good B2B payment network knows that and pulls out all the stops with multi-step verifications, data encryption, fraud detection, monitoring etc.
CONEXT® B2B PAYMENT NETWORK ALLOWS FREE TRANSFERS UP TO 50K IN ONE DAY.
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interested in b2b payments?
Try the CONEXT® B2B Payment Network. The CONEXT® Mobile app – available for iOS & android - allows you to transfer up to 50k in one day to other CONEXT® Cardholders. Transfers are at no extra cost and occur in real-time. The process is secure and easy, and your funds are, of course, FDIC insured.
Want more info? Call us at 1-855-674-7787 to learn how CONEXT® is the right business solution for you.
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