B2B payment structures have been set in motion by recent developments in transaction technology. In particular, blockchain algorithms offer a secure and efficient way to exchange products and their recent rise in popularity speak to their viability in this space in the future. Kimberly Rosales, an insider with years of experience in the cryptocurrency industry, explains how B2B distribution can benefit from the blockchain.
Blockchain algorithms can replace central banks or government backing in support of virtual currencies they create. This technology is a rapidly growing field for large corporations, particularly B2B distributors. According to a 2018 study, 82 percent of Fortune 100 companies had started researching blockchain technology or invested money in it.
J.P. Morgan, Visa, Mastercard and Visa have all launched blockchain networks to facilitate B2B transactions. Rosales discusses the advantages of blockchain technology for distributors in B2B.
“Blockchain lends itself to distribution because it has a unique ability to integrate different supply chains into a single service,” Rosales explains. “This capability increases efficiency, enables greater collaboration, and makes it easier than ever to correct problems in the system.”
Distributors have a high chance of success with blockchain in the near future. A blockchain system connects all parts of the supply chain, making it possible to track and trace transactions., according to Rosales, “engages new realities such as the expanding data streams presented by the Internet of Things (IoT).” With companies forced to fulfill a greater number of supplies to make the process more efficient, blockchains will be vital.
Blockchain technology helps both customer satisfaction and the bottom line of any B2B distributor. According to Rosales the interconnectedness of the platform is able to “provide better transparency and provenance to participants, so you can know where food, vaccines, electronic components, and even electronic component parts are located.”
Transparency allows distributors to track their own shipment and identify gaps in the supply chain. This results in better customer experience. In an IBM-Walmart experiment, IT professionals using blockchain technology were able locate one package of sliced mangoes among thousands that had been shipped to multiple stores.
Rosales notes that this capability could have huge implications for food safety in the future and overall product quality. Blockchain can help to reduce fraud on the payment side. Payment data can be easily verified. This allows B2B distributors to sleep easy knowing their supply chain is transparent and can be fixed immediately.
The blockchain eliminates the middleman, making it easier to pay. Rosales states that blockchain benefits B2B payments by “facilitating and scaling financial transactions, blockchain replacing banks, processing and credit card verification.” This lowers costs for customers and suppliers. This payment option allows for a network of connected users, similar to PayPal in the B2B world. This is why major banks and credit card companies are investing in blockchain technology.
Blockchain technology is a new technology in B2B distribution. It could revolutionize the payment process, and make the supply chain transparent. Distributors who plan ahead for this technology can take advantage of the many opportunities that are available.