B2B payments must embrace digitalization: Gen Z is reshaping industry rules
As the first digital-native generation, Gen Z is profoundly influencing the B2B payments sector. Billtrust Vice President Justin Main writes that B2B companies that continue to rely on outdated payment systems will struggle to meet Gen Z's expectations for instant, seamless digital transactions, risking customer attrition. The article analyzes key gaps such as contactless innovation and new credit tools, and calls on companies to completely rethink their approach to customer experience.
Editor's Note:Justin Main is Vice President of Integrated Payments at Billtrust, headquartered in Lawrenceville, New Jersey, responsible for integrated payment operations, sales enablement, and emerging payment products. He is based in Glen Ellyn, Illinois.
We must face a fact: Generation Z is fundamentally different from any previous generation. They are the first true digital natives, having grown up surrounded by fingertip technology. As they begin climbing the corporate ladder, their influence is permeating every area of business, including business-to-business (B2B) payments.
Here's the key: Gen Z favors instant gratification; they expect fast, seamless digital transactions. If your brand cannot deliver an outstanding digital experience, they won't like you, and they won't do business with you.
This rule applies across all industries, and it is especially prominent in the B2B space. B2B organizations have been slow to adapt to Gen Z's evolving needs and expectations. They still use outdated payment systems and processes that are no longer effective in today's digital age. Although many B2B organizations have begun modernizing their order-to-cash systems, they still have a long way to go.
One of the biggest areas where B2B organizations underperform is contactless innovation. Gen Z is accustomed to using mobile wallets and peer-to-peer apps like Venmo, PayPal, and Zelle. They expect the same convenience and speed in B2B payments. However, many B2B organizations have been slow to adopt these technologies, and as a result, they are losing business.
Another area of shortfall is credit and debt. Gen Z adopts new forms of credit and debt at much higher rates than other generations, such as buy-now-pay-later technology. Although this technology has flourished in the retail sector, B2B organizations have lagged in adoption. If they don't catch up quickly, they may hand business over to competitors willing to cater to the needs of younger generations.
Ultimately, Gen Z will drive the future of payments, including those in B2B environments. If your brand cannot meet their needs and expectations, you will be left behind. This is not just about adopting new technology; it's about fundamentally changing how you think about the overall customer experience. You need to be willing to take risks, stay innovative, and think outside the box.
But the harsh reality is: many B2B organizations are unwilling to do so. They cling to old habits and resist change. They believe their existing systems and processes are good enough and see no need to invest in new ones. This is a huge mistake that could prove costly in the long run.
To succeed in today's B2B landscape, you must embrace the digital age, take risks, and make it easier than ever for customers to do business with you. Otherwise, you risk missing out on one of the most influential generations we have ever seen.