How Online Payment Processing Works for an Ecommerce Store

18 / 10 / 2023

In a world where digitisation has emerged as a powerful force, small and medium-sized businesses (SMEs) are at the forefront of this transformative journey. In India, these businesses contribute approximately 33% of the country's Gross Domestic Product (GDP). The digitisation wave has engulfed various sectors, including the B2B eCommerce domain. This article explores the significance of online payment processing for B2B eCommerce stores and how it can empower business owners to thrive in the digital age.

The Digital Transformation of B2B eCommerce

B2B eCommerce has undergone a remarkable transformation in recent years. As the COVID-19 pandemic accelerated the shift towards digital platforms and payments, businesses in the B2B sector were quick to adapt. According to a recent report by the Indian Brand Equity Foundation (IBEF), a staggering 75% of payments within the B2B sector are now conducted online, encompassing various modes such as credit/debit cards, Unified Payments Interface (UPI), and net banking. However, there is still untapped potential in terms of fully digitised solutions, and this article delves into the key factors driving growth and digital adoption in the B2B eCommerce landscape.

Government Initiatives: Bridging the Digital Gap

The Indian government's vision of a 'Digital India' serves as a bridge connecting businesses with the digital world. The government has launched numerous programs, schemes, and networks designed to help businesses save time and resources while enhancing their operational efficiency. Two standout initiatives are worth mentioning:

Emergency Credit Line Guarantee Scheme (ECLGS): Introduced to provide additional credit facilities to small businesses, ECLGS has been a lifeline for many businesses. With a total allocation of ₹5 lakh crores, it has already disbursed 71% of the allocated funds as of December 2022, injecting much-needed capital into the sector.

Open Network for Digital Commerce (ONDC): ONDC is a game-changing platform enabling small and medium businesses to create innovative digital commerce applications and services. Leveraging open APIs, interoperability, and open-source technologies, ONDC aims to promote digital inclusion and support the growth of the Indian digital economy.

FinTech's Role in Credit Availability

Before the advent of FinTech innovations, upcoming businesses often struggled to secure credit, especially if they lacked a strong credit history. Traditional banks and financial institutions were cautious about lending to start-ups or businesses with low credit scores. However, the digital shift within MSMEs is creating a digital trail of financial transactions that new-age FinTech players can use to evaluate creditworthiness and provide instant credit. This trend has revolutionised the financial landscape for businesses, allowing them to grow without the traditional hurdles. According to Experian, India's digital lending market was valued at $270 billion in 2022 and is projected to reach $350 billion by 2023.

Digital Payments: The Key to Efficiency

Demonetisation and the COVID-19 pandemic acted as catalysts for the widespread adoption of digital payment methods. A comparison of digital payment growth between the pre and post-COVID periods reveals a more than 200% increase in digital payment volume during the last four years, from 2018-19 to 2021-2022. The widespread acceptance of digital payments is akin to unlocking the door to success for B2B eCommerce stores. It enables businesses to receive payments faster, reduces payment processing time, and improves cash flow—a crucial aspect of financial stability for SMEs.

Digitisation of Business Processes

Effective business operations entail managing various critical functions, including data management, inventory management, record-keeping, and customer support. The digitisation of Business Process Management (BPM) enhances customer interactions, reduces costs, and minimizes human errors by replacing manual processes with automated ones. For B2B eCommerce stores, this translates to improved operational efficiency, streamlined processes, and enhanced customer satisfaction.

The Worldline Advantage

As a pioneer in the FinTech industry, Worldline stands at the forefront of providing e-commerce. Security is our foremost concern. We employ the highest levels of encryption, multi-layered security protocols, and continuous monitoring to ensure that your business transactions are fortified with impenetrable security. Your trust is our most valuable asset.

We understand the importance of simplicity. Our user-friendly interfaces and intuitive payment solutions streamline your B2B digital payment experience, making it smooth and hassle-free. We are here to equip your business with technology that simplifies your operations.

Conclusion: The Imperative of Digitisation for B2B eCommerce Stores

Digitisation is no longer a mere option but a necessity for the growth and success of B2B eCommerce stores in India. As the digital revolution continues to reshape the business world, B2B eCommerce stores must stay ahead of the curve and leverage solutions provided by service providers such as Worldline. By doing so, they can unlock their true potential and seize the countless opportunities that await in the digital age.

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Worldline India Editorial Team