Crypto has given us a new way to deal with money matters, but it would be wrong to classify all crypto transactions the same way. While each token has unique properties, we also need to take into account the different ways that B2B and B2C payments are handled. Understanding the key differences between these types of transfers makes it easier to implement smoother business processes.
Traditional B2C and B2B payments
B2C payments are generally as fast and simple as you would expect, with the business sending a crypto payment directly to a customer. A B2C crypto payment may involve something like a refund or rebate, which will usually be made right away. On the other hand, B2B payments using traditional banking methods have tended to be slower and more complex in the past. These are typically for larger amounts, and both companies may have sales and invoicing processes that they need to comply with.
This leads to B2B payments often having unique terms that both sides need to take into account. While a B2C payment is more likely to follow a standard process every time, a B2B transfer is more likely to have a contract that lays out the terms, including how soon the payment has to be made.
Using crypto for B2B payments
By using crypto, companies can adapt to these unique conditions while getting the same benefits of using digital assets. B2B transfers can also be made 24/7 from anywhere in the world and without the limits that can make sending large bank transfers awkward. This type of decentralised financial network could replace the traditional banking system, or else continue to work alongside it.
With crypto payments between businesses becoming increasingly common, this approach is set to improve the way businesses deal with their sales and purchases. Reduced transaction fees and greater security features are among the benefits of integrating a crypto payment gateway. With no intermediaries, businesses have the freedom to send the amount that suits them at any time, without being restricted to sending or receiving cash on business days.
The verification process requirements
B2C crypto transactions are most commonly made through secure digital channels where the customer has to verify their identity at the outset to ensure that all future transactions go through smoothly. This normally only takes a moment, as personal customers need to verify their identity by uploading an official document, such as their national ID, that confirms who they are. They may also be asked to take a photo or video that helps confirm their identity.
Similar Know Your Customer (KYC) processes to those that personal crypto users also need to be followed by business users opening corporate accounts, and it might be slightly more time-consuming for them to achieve verification. They should expect to be asked to provide business documents that confirm the key details of the company.
The introduction of crypto payments has made it easier to carry out both B2B and B2C transfers without any fuss. The processes may be slightly different, but in both cases, the use of digital assets has given business users a fast and reliable way of moving money.
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
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