Card payments have long been associated with consumer transactions rather than business-to-business interactions. This perception can be attributed to payment gateways concentrating on the B2C market, reflecting their belief that this is where the demand lies. As a result, there has been limited awareness and marketing done about the potential benefits of card payments for B2B transactions.

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If you're a finance officer in a B2B company that’s exploring efficient and user-friendly payment alternatives to improve cashflow, you've probably faced challenges like:

• Tedious manual payment link generation using payment gateways
• Reports on the low adoption rate of card payments among B2B customers and
• Lack of technical support to integrate card payments into your systems 

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Such challenges may be why previous studies showed low usage of card payments in the B2B sector in MENA. However, the story is changing as our data reveals a growing interest in B2B card payments, which opens up a huge opportunity for businesses. As more companies begin to issue corporate cards and vendors start to accept them, the landscape is poised for a significant transformation, enabled by finance technology.

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At Kema, we've helped SMEs, fractional CFOs, and enterprise companies in MENA improve customers' payment experience by providing online checkout and multiple payment options, including card payments.

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In this article, we'll discuss: 

• The State of B2B Card Payments
• Kema’s Data Reveals Interest in Card Payments
• How to Easily Implement Card Payments in Your B2B Company
• Why use Kema for B2B Card Payments

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Learn how Kema can help you improve B2B payments. Speak with an expert today.

Only about 1% of commercial transactions in MENA were made using cards in 2020. Despite the convenience and potential benefits, many businesses were yet to adopt card payments. Why is this number so low? There was a two-sided problem to consider. 

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On one hand, businesses were still hesitant to accept card payments. This could be related to fees, security, or the fact that it had always been done through more traditional channels, such as bank transfers or cheques. More importantly, many companies operated under outdated systems that impede them to process card payments efficiently. 

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On the other hand, the payers, the businesses that would potentially use cards to pay their invoices, were limited by their finance teams/expense management systems and might not have corporate cards available for employees. 

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In recent years, expense management startups have stepped in to disrupt the status quo. Companies like Pemo, Pluto, and Alaan, among others, are bridging the gap between traditional payment methods into the digital era, paving the way for B2B card transactions.

At Kema, we've gathered some insights regarding the slow adoption of card payments from customer interviews. Customers have expressed uncertainty about whether their own clients have a genuine interest in card payment options. They also question whether the costs associated with payment gateways are justified in the effort to collect payments faster. 

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The common way B2B companies use card payments is by manually generating payment links through a payment gateway. This is a cumbersome process which might be manageable for a few transactions but hard to scale. Moreover, many B2B companies lack the internal know-how or bandwidth to integrate payment gateways into their workflows, making it even harder to offer this modality and gauge interest and cost.

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We’ve also noticed something interesting in the market: Many payment gateways seem to be missing the mark when it comes to B2B strategies. They're so focused on the consumer market that they're overlooking the highly lucrative potential of business-to-business transactions. As a result, the lack of targeted marketing means many businesses simply aren't aware of the benefits of using cards for their B2B payments.

The assumption that B2B transactions are all about small, frequent payments. Our data tells a different story, however. Here are some numbers we collected in 2024:

• Largest invoice paid by card: AED 34,000
• Average invoice is valued at: AED 7,000
• Invoice payments by card: 15%

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One of the most striking findings from our analysis is that the average invoice value processed is AED 7,000. This figure demonstrates that cards are being utilized for more than just minor expenses. And that 15% of invoices paid by card is a significant increase from what studies have shown, and is likely to grow as more businesses realise the benefits. 

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Also, one in five customers will choose card payment when offered the option. In the past, a barrier might have been integrating payment links with ERP systems. However, with today’s technology, businesses can now tap into seamless and automated integration, making this process much easier than before.

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To recap, these findings have several important implications for businesses operating in the MENA region:

1. There can be a meaningful impact on outstanding payments improving cash flow for businesses. 
2. It’s in higher demand than anticipated, presenting an opportunity for businesses to meet demand.
3. Versatility in transaction size means card payments are not just for small payments, but can be used for a wide range of payment sizes.

If you have been hesitant to adopt B2B card payments due to perceived challenges with implementations, we have good news. It’s never been easier to implement this technology due to no-code and low-code solutions using pre-built connectors and proprietary plug-ins. You can launch card payments without extensive IT resources or upfront investment, especially with Kema’s payment links and online checkout features. We’ll break down what these mean below. 

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Before we dive into these options, let’s review the benefits of integrating card payments. 

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4 Reasons Why Card Payments Make Sense for B2B:

1. Improved Days Sales Outstanding (DSO): Offering a card payment option helps reduce payment delays, hence improving payment collection processes and DSO.
2. Reduced Reconciliation Efforts: Integrating card payments with ERP systems also reduces the workload for finance teams by automating invoice updates, which leads to faster book closures and lower operational costs.
3. Extended Payment Flexibility: When a payer uses a card, they effectively gain an additional 30-50 days to settle their invoice, which can be valuable to them and may encourage more timely payments.
4. Enhanced Payer Experience: Streamlined processes and improved payment options result in a better experience for payers, potentially leading to stronger business relationships and repeat transactions.

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Kema simplifies B2B card payments with no-code solutions designed for ease, flexibility, and minimal upfront costs. Quickly integrate card payments into your business without technical hassles. Whether you're a small business or an enterprise, Kema helps streamline your payment processes efficiently.

Start accepting card payments right away—no tech skills required. Simply enter your payment gateway details, and Kema will automatically send card payment links with your invoices. Get started instantly and improve your cash flow today.

Connect Kema directly with your ERP or accounting system. We support Xero, QuickBooks, Zoho, Odoo, Microsoft Dynamics, Workday, and more coming soon. Simply use our built-in plugins to connect your ERP, and enjoy automatic synchronization of invoices, credit notes, and payments without altering existing workflows. Enhance your ERP capabilities with seamless integration.

No ERP? No worries. Connect your payment gateway, create invoices within Kema, and instantly send payment links to your clients—no additional software or integration needed. Enjoy simplicity and efficiency even without complex infrastructure.

Effortlessly manage recurring billing, partial payments, and auto-debits. Kema’s flexibility makes complex payment scenarios easy and customer-friendly. Boost your payment reliability and customer satisfaction with automated solutions.

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Discover simple B2B card payments with Kema – Book a demo today!

Offering card payment options today is more than just a possibility—it’s an opportunity for growth and efficiency. The demand for card payments in the B2B marketplace is clear, and there’s no reason not to explore it. Today’s technology offers low-risk, low-cost solutions for businesses of all sizes. 

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With Kema, you can easily integrate card payments without extensive IT involvement or complex setup, allowing you to discover just how easy it is to unlock new opportunities for your business.

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