E106: Talking B2B eCommerce & Marketplace Payment Solutions w/ Bar Geron, Balance
INNOVATING B2B PAYMENTS: A DEEP DIVE INTO BALANCE PAYMENTS' VISION AND IMPACT
In today’s rapidly evolving digital commerce environment, the B2B sector often appears to lag especially in the complex world of payments. The recent breakthroughs by Balance Payments in reinventing B2B transactions, signal a significant leap towards modernizing this space. This post explores the challenges of current B2B payment systems and how Balance Payments is setting the stage for transformative change. We explore more with CEO and co-founder Bar Geron.
THE CURRENT STATE OF B2B PAYMENTS: STUCK IN THE PAST
Traditional B2B payment processes are notoriously cumbersome and outdated. Typically dominated by manual methods like checks and wire transfers, these processes are not only slow but also fraught with inefficiencies that can stifle business growth and operational scalability. Bar Geron explains that their journey began at PayPal, where the seeds for revolutionizing B2B payments were planted. The fundamental issue, as Geron notes, is that most B2B transactions are still handled like a decades-old manual invoice process, which is not conducive to the speed and efficiency required in today’s business environment.
INTRODUCING BALANCE PAYMENTS: A SEAMLESS B2B PAYMENT SOLUTION
Balance Payments emerged from the need to overhaul how businesses handle transactions. With an impressive $25 million in funding, the company developed a platform that simplifies B2B payments by adopting an API-first approach, much like Stripe did for B2C. Their platform addresses several pain points in traditional B2B payments by offering instant payment processing, flexible payment methods and improved transactional risk assessment.
SIMPLIFYING PAYMENT METHODS: The world's first B2B checkout
One of Balance Payments' core innovations is enabling businesses to pay using methods that are traditionally seen as B2C-focused, like credit cards, alongside more conventional B2B methods such as checks and wire transfers. This hybrid approach allows businesses to benefit from the immediacy and security of digital payments while accommodating the established practices that many businesses are reluctant to abandon.
ADDRESSING CREDIT AND TERMS
Geron highlights that offering credit terms is a complex aspect of B2B transactions. Balance Payments tackles this head-on by providing tools that allow sellers to offer and manage credit terms efficiently, something that's often a dealbreaker in B2B deals. By automating these aspects, Balance Payments not only speeds up the transaction process but also reduces the overhead associated with credit management.
THE FUTURE OF B2B E-COMMERCE AND MARKETPLACES
The vision of Balance Payments extends beyond just simplifying transactions. Geron believes that the future of B2B commerce lies in online marketplaces similar to B2C platforms like Amazon. These marketplaces can revolutionize industries by connecting buyers and sellers in more dynamic and efficient ways, thereby reducing costs and improving supply chain efficiencies across the board.
EXPANSION PLANS AND STRATEGIC PARTNERSHIPS
With a strong foothold in the US and Canada, Balance Payments plans to expand into Europe and other markets soon. Their strategy involves embedding their system into popular eCommerce platforms through strategic partnerships, making it easier for B2B merchants to adopt their solution without significant overhauls to their existing systems.
CONCLUSION: A NEW ERA FOR B2B COMMERCE
The innovations brought forward by Balance Payments represent a shift towards a more streamlined, efficient, and modern B2B payment landscape. As businesses increasingly look for ways to improve operational efficiency and reduce transaction friction, solutions like those offered by Balance Payments will become crucial. The journey of modernizing B2B payments has just begun, and with companies like Balance Payments at the forefront, the future looks promising. Whether dealing with international trade or small local transactions, the B2B sector is on the brink of a new era, driven by technology and innovation.
To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: