Despite the growing digitization of consumer payments, many business-to-business transactions still depend on manual processes, which add unnecessary friction. This scenario is starting to change.

Streamlining Payments with FACTSPay

Freight management software provider Carrier Logistics has launched FACTSPay, an online payment tool aimed at simplifying invoice settlement for shippers. Traditionally, paying freight invoices—whether by credit card or ACH—often necessitates contacting customer service. Transitioning these interactions into a digital self-service environment could yield significant benefits across the industry, mirroring similar advancements seen in other sectors.

Independent software vendors (ISVs) in the B2C space have been at the forefront of integrated payments and embedded financial services, with companies like Toast serving as prime examples where seamless payment processing supports additional business financial needs such as payroll and working capital management.

The Primary Obstacle

This model also offers opportunities for cost reduction. By enabling self-service payments, motor carriers can diminish the administrative workload involved in collecting from shippers, while shippers encounter fewer obstacles when settling their invoices.

The primary hurdle to card payments in B2B transactions is the 3% average fee businesses incur to accept corporate and purchasing cards. In the context of less-than-truckload (LTL) logistics, the cost associated with phone-based collections and inquiries about invoices can be substantial.

Embedding payment processing within the software used for invoice lookup and self-payment represents a significant potential cost saving for carriers, according to Apgar.

Spearheading the Next Phase

For many software-as-a-service (SaaS) companies, integrating payment capabilities into their offerings signifies just the beginning. From simple point-of-sale solutions, platforms like Toast have transformed into comprehensive financial services providers.

In response to growing demands for flexibility and cost efficiency in B2B commerce, systems that integrate payments directly with operational workflows are poised to play a more prominent role in the future of electronic payments within business-to-business applications.

According to Apgar, this development will likely serve as a cornerstone for the next phase of growth in electronic payments across B2B environments. Successful implementation could set the stage for significant advancements in the broader payments landscape.