Ecommerce in India is expected to grow $64 Billion by the year 2021. Inspite of the growth of local market consumers, India became a paradise for shoppers now, with a rapid increase in the number of online purchases from the foreign countries. Continuous evolution and constant innovation in digital devices and social media, online sellers gains competitive advantage for growth and have thus become more attractive for investors. India has e-commerce Unicorn Flipkart in their billion dollar startup club. It seems that B2C is getting all the attention but B2B is not far behind. Both in Online and Direct Marketplace B2B have significant growth and presence. Most B2B players have tied up with banks and financial institutions to receive their payments from their customer abroad so that it could help in improving access to credit.
B2B e-Commerce has created efficiency, choice, convenience, reach. But the payment service providers or PSP’s haven’t provided the e-commerce players with more options. With the legacy systems in the payment space, slows down the growth of the e-Commerce industry for cross border payments. For example, when a European buyer orders for equipment from India and pays through SWIFT wire transfer, the merchant usually waits till he receives the payment in his account in order to avoid fraudulent purchases. A payment initiated through SWIFT wire transfers usually takes 72 hours for clearance. Ecommerce players just loose 3 days for receiving payments alone.
For SMB’s, B2Bpay is one of the wonderful things that have happened. For a SMB business, their transaction volume is too less to use cheaper way of receiving funds or to have a Euro bank account in India. B2Bpay serve as a boon for these players. Basically, B2Bpay wipes out the weaknesses of SMEs. Having a B2Bpay option takes care of receiving payments from your European customers, receiving quick payments enables to shorten the time of customer delivery time. B2Bpay has potential to enable SME’s growth in sales and helped them acquire new customers. Ease of payments will drive the consumption, and it is not the other way around. A simple example is the reason why credit card is a great success. Providing the ease of access with payments increases the buying behaviour of customer and also ease of linear process management in terms of delivering the product post purchase.