Business-to-business (B2B) payments are the backbone of the global economy. Every time one company pays another, whether for raw materials, software, or services, that’s a B2B transaction. Yet, despite their importance, B2B payments are often slow, expensive, and complex, especially compared to consumer payments.

In this guide, we’ll break down everything you need to know about B2B payments: the different methods, the challenges businesses face, and the innovations shaping the future of business transactions. We’ll also highlight opportunities for companies in Africa and beyond to leverage smarter payment solutions for growth.

What Are B2B Payments: Definition & Key Features

What is a B2B payment?
A B2B payment is any transaction where one business pays another for goods or services, this could be for materials, inventory, vendor services, software, or cross-company obligations. These payments tend to involve invoices, purchase orders, higher amounts, longer payment terms, and more than one internal approval.

Key Features That Distinguish B2B Payments

• Invoice management & purchase orders
• Recurring or scheduled payments
• Higher transaction amounts
• Multi-step approvals & audit trails
• Cross-currency and cross-border components
• Need for transparency & compliance (tax, AML/KYC)

Methods of B2B Payments: Local, International & Hybrid

Here are common payment methods businesses use, with pros & cons:

Payment Method	Local / International Use Case	Pros	Challenges
Bank Transfers / Wire / EFT	Pay local suppliers or international vendors	Reliable, accepted, relatively secure	Can be slow, high fees, complex for cross-border
ACH / Direct Debit / Automated Clearing	Mostly local recurring payments	Low cost, automated	May not be available or fast in all jurisdictions
Credit / Debit Cards / Virtual Cards	Pay vendors or services that accept card payments; often domestic or partial cross-border	Speed, ease, convenience	Higher fees, not always accepted internationally, chargeback risks
Digital Wallets & Business Wallets	International or domestic, depending on wallet; converting between currencies	Flexible, faster settlement, easier to manage via interface	Regulatory risk, currency conversion fees, limited recipients depending on region
Payment APIs & Gateways	For integrating payments into platforms, automating payouts, cross-border payments	Scalable, customizable, can reduce manual work	Need dev resources, security & compliance, cost of API calls / coverage
Hybrid Solutions	Using local transfer + foreign exchange partners, digital & bank rails combined	Can optimize for cost, speed depending on route	Complexity, transparency of fees & FX, regulatory risk

Trends in B2B Payments (What’s Changing)

From reviewing Stripe, Shopify, Adyen, Inpay and others, here are trends business should know:

• Automation & AP/AR improvements: Reducing manual tasks, matching invoices automatically, pushing approval workflows.
• Cross-border payments growth: Especially for companies sourcing globally, remote services, or selling into other markets. As supply chains globalize, the demand for safe, fast international transfers increases.
• Multi-currency handling & transparency: Businesses want to see upfront all costs—fees, exchange rates, delays. Hidden costs are a big frustration.
• Stricter compliance / regulation: AML, KYC, audit trails, tax compliance, especially for cross-border business payments.
• API & integrations: Integration with ERPs, digital platforms, marketplaces; enabling programmable or embedded payments.

Challenges & What’s Often MISSING in B2B Payments

As reviewed across competitors, some weaknesses or gaps often appear:

• Lack of deep expense/spend visibility: Many posts describe payments and invoicing, but fewer go deep into ongoing expense management with dashboards, approvals, reconciliations in real time.
• High costs & FX fee transparency: Hidden charges, slow exchange rate refreshes, markups not well disclosed.
• Slow cross-border settlement: Delays caused by bank cut-offs, intermediaries, lack of tracking or partial payments stuck in transit.
• Poor automation of approvals & audit: Manual signatures, no unified workflows.
• Limited mobile / remote approval or mobile-friendly tools: Given that teams are distributed, remote work, etc., the ability to approve or manage payments securely from mobile is increasingly expected.
• Inconsistent data freshness and reporting latency: Up to date data is essential; dashboards that lag hurt decision-making.
• Integration issues: ERPs, accounting systems often not well integrated; manual CSV uploads, etc.

How to Choose a Strong Payment Solution for B2B Payments

When evaluating providers, consider:

1. Payment types supported: Local transfers, international wires, virtual cards, direct debits, bulk payments.
2. Currency & FX handling: Multi-currency wallets, real-time FX rates, minimized fees.
3. Security, regulation & compliance: AML/KYC checks, audit trail, policy controls.
4. Approval workflows & spend control: Ability to set hierarchical approvals, role-based permissions, separation of duties.
5. Reporting & analytics: Dashboards, real-time data, success/failure rates, invoice vs payment gap, ability to export.
6. Integration capabilities: API access, ERP compatibility, billing systems, vendor portals.
7. User experience & speed: Fast onboarding, intuitive dashboards, mobile/remote approvals.

The Rise of B2B Payments in Africa

Africa is a unique case study in the future of B2B payments:

• Mobile-first adoption: Businesses are embracing wallets and mobile banking to bypass infrastructure gaps.
• Cross-border trade: With the African Continental Free Trade Area (AfCFTA) boosting intra-African trade, demand for efficient B2B payment solutions is skyrocketing.
• Currency challenges: Companies need solutions that handle multiple local currencies (naira, cedis, shillings, CFA franc) and USD for imports.
• Fintech innovation: Local players are building APIs and platforms to simplify settlement for both SMEs and large enterprises.

Why Businesses (especially in Nigeria/Africa) are Moving to Modern B2B Payment Solutions

• They want visibility & control over every transaction—local and international.
• The pain of delays, hidden FX costs, vendor dissatisfaction hurts credibility.
• Remote work, digital sales, and global supply chains demand faster, safer payment methods.
• Regulatory environment (e.g., tax, AML, FX regulation) is tightening; businesses can’t afford gaps.
• Growing competition: efficiency is not a nice-to-have but a must to scale.

How Duplo Compares & Fills the Gaps

To rank highly, a blog should also show what makes Duplo uniquely positioned. Some feature-based proof:

• Real-time dashboards for Spend Summary and Payment Analytics with multi-currency filters.
• High success rate, visibility into failures, pending payments.
• Approval workflows + audit-ready records.
• Efficient cross-border payments + local payouts.
• Transparent fee & FX rate handling.
• API access and integration (if applicable).

Action Steps: How to Improve Your B2B Payments Now

• Audit current payment processes: map every step from invoice to vendor receiving payment. Identify delays or fees.
• Negotiate FX and bank fees or use payment platforms that give better terms.
• Automate approvals and require necessary documentation (POs/invoice numbers) to speed up pay cycles.
• Use analytics dashboards to monitor failure rates, payment delays, trending vendors or accounts that eat cost.
• Choose a payment provider that gives you local + international support, flexible APIs, and good reporting.

Conclusion

B2B payments are not static. As business becomes more global, virtual, and demanding, the payment systems behind every supplier invoice, vendor payout, or cross-border transfer must evolve. A strong B2B payment solution should deliver transparency, speed, control, and compliance, especially for businesses operating locally and internationally.

If you’re in Nigeria (or African markets), choosing a modern platform like Duplo can help you bridge the gap between what current systems offer and what your business truly needs: seamless local payments, reliable international transfers, expense visibility, compliance, and analytics.

👉 Ready to see what a best-in-class payment system looks like? Book a demo with Duplo today.