Business To Consumer (B2C) Payment - Big Growth, Big Change

Any business needs to understand B2C (Business-to-consumer) payments to provide customer satisfaction. B2C is the exchange of products and services between a business and a consumer. With this below fundamental knowledge, you can understand how B2C Payment changes and grows and the B2C payment systems, B2C payment solutions and B2C payment trends.

Let's keep reading to learn more about it.

Business to Consumer (B2C) Payment - Big Growth, Big Change

Business-to-consumer (B2C) refers to the process of selling products and services directly to customers who are the end-users of the company's products or services. The majority of businesses that sell directly to consumers are referred to as B2C businesses. Business-to-consumer (B2C) is a mainly digital sales model on e-commerce

During the late 1990s boom, B2C became extremely popular as a term to describe online retailers who sold items and services to customers via the internet.

KEY TAKEAWAYS:

• The process of businesses selling products and services directly to consumers, without the need of a middleman, is known as business-to-consumer (B2C).
• B2C stands for business-to-consumer, and refers to online retailers who sell items and services to consumers through the internet.
• Traditional retailers, who benefitted by adding a markup to the price, saw online B2C as a threat.
• Companies like Amazon, eBay, and Priceline, on the other hand, have thrived, eventually becoming industry disruptors.

1.1. What are B2C examples?

B2C encompasses not just items but also services. B2C innovators have taken advantage of technologies such as mobile apps, native advertising, and retargeting to promote directly to their customers while also making their lives easier.

For instance: consumers may quickly connect with local lawn mowing businesses, garden and patio specialists, or snow removal pros using an app like Lawn Guru. Another typical example is Housecall Pro's plumbing software app also allows home service businesses to track personnel routes, text consumers, and take credit card payments while on the go, which benefits both the consumer and the business.

Examples of B2C companies: Amazon, Facebook, Alibaba, eBay, Google, Netflix.

B2C examples and B2C platforms

1.2. How many types of online B2C models in the digital world?

Most businesses employ one of five types of online B2C business strategies to reach out to their customers:

Direct sellers.This is the most typical way for customers to purchase items from internet merchants. Producers, small enterprises, and even online versions of department stores that sell products from various manufacturers are examples of these.

Online intermediaries.These are intermediaries or go-betweens who do not own items or services but connect buyers and sellers. Expedia, trivago, and Etsy are examples of this type of website.

B2C based on advertising. Free material is used in this strategy to attract visitors to a website. These visitors are then exposed to digital or online advertisements. Advertising, which sells goods and services, is sold using large numbers of web visitors. Media sites like HuffPost, a high-traffic site that mixes advertising with native content, are an example.

Community-based. Marketers and advertisers can push their products directly to consumers through sites like Meta (previously Facebook), which create online communities based on similar interests. Ads are often targeted depending on demographics and geographic location of viewers on websites.

Subscriptions. Netflix, Spotify, Apple music and other direct-to-consumer sites charge a fee to access their content. The site may also provide certain content for free, but only to a limited audience, while charging for the majority of it. The New York Times and other major newspapers frequently operate on a fee-based B2C basis.

Consumer to Consumer (C2C) is a business concept in which customers trade with one another, usually over the internet. Auctions and classified advertising are two examples of C2C markets. With the advent of the Internet and firms like PAPMall, eBay, Etsy, and Craigslist, C2C marketing has exploded in popularity.

PAPMall is a famous C2C platform for all types of sellers from individuals to business organizations including SMEs and freelancers.

KEY TAKEAWAYS:

• Consumer to Consumer (C2C) is a business strategy that allows customers to trade with one another, often over the internet.
• C2C firms are a form of company model that arose as a result of the sharing economy and e-commerce technology.
• PAPMall, Craigslist, Etsy, and eBay are examples of online C2C companies that offer products or services through a classified or auction system.

Consumer to Consumer (C2C) - a business concept in which customers trade with one another.

2.1. What are C2C business examples?

C2C refers to a market in which a customer buys goods from another customer via a third-party company or platform that facilitates the transaction. C2C businesses are a type of company model that arose as a result of e-commerce and the sharing economy.

Consumers gain from product rivalry since they can often locate items that are hard to come by elsewhere. Also, because there are no retailers or wholesalers, sellers' margins can be bigger than with typical pricing techniques. Because there is no stationary store nearby, the C2C locations are convenient. Buyers flock to sellers that advertise their products online.

There are some examples of C2C websites:

• PAPmall

PAPmall specializes in digital software solutions and a bunch of services. They bridge the gap between end users who are looking for digital solutions, IT products, IT license with detailed guidelines, customer support service, graphic design, video softwares, ect. and all types of sellers from individuals to business organizations including SMEs and freelancers.

• Craigslist

This is an e-commerce platform that brings together people who are advertising products, services, or events. Craigslist also publishes monthly adverts, such as job openings and real estate listings, in addition to providing a platform for buying, selling, and trading things. This site, like many others, requires the vendor to transmit the things straight to the customer.

• Etsy

This website enables business owners to construct their own website on which to sell their items to customers. The C2C site offers advice and tools for expanding a business, with prices varying depending on the company's stage of development. You may also use the "Sell on Etsy" app to manage customer orders, offers, and queries more quickly.

• eBay

There are two sorts of product listings on this website: fixed-price products and auction items. The Buy Now button can be used to purchase fixed-price items rapidly. Bid buttons are available on auction goods, allowing you to place bids and see the current bid price. These products are available for bidding for a limited time before being declared "sold" to the highest bidder.

The top C2C companies are listed: Vestiaire Collective, Bukalapak, Cint, Zopa, Lalafo, Audio Network, Applozic, Inc, Crowdcube, Funding Circle, Tokopedia, 3D Hubs

2.2. What are the differences between B2C and C2C e-Commerce?

Business-to-consumer (B2C)	Consumer-to-consumer (C2C)
Businesses are able to sell to consumers through the business-to-consumer (B2C) e-commerce paradigm. A frequent example is a paid advertisement on a personal website, in which firms pay the website owner for ad space	The goal of this e-commerce strategy is to make it simple for consumers to trade standard items with one another. An online marketplace, comparable to eBay or Amazon and PAPmall is the most popular application.
C2C eCommerce Benefits and Drawbacks Smaller shops without a well-established brand or business unit appear to favor the C2C e-commerce business model. C2C eCommerce has various advantages for people who want to sell their goods and services through a platform, as detailed below.
Benefits Higher profitability: The basic principle behind the C2C e-commerce business model is that there are no middlemen involved, allowing for cheaper product or service costs and higher profits. Additional expenditures such as rent, employee wages, website hosting, marketing, and the usage of third parties for product distribution are not considered by C2C vendors. The direct communication and transactions between the vendor and the customer are enabled through the C2C e-commerce marketplace, which has no hidden charges. Largest customer base: The amount of visitors and potential customers (physical or electronic) to your physical or online store is determined by the opportunities, proximity to the store, loyal customers, advertising, and effective marketing. When a C2C e-commerce marketplace "comes to a halt," the chances of prospective visits and transactions increase dramatically when people look for specific products and services on the platform. Furthermore, because C2C e-commerce is conducted online, your items and services will be visible to a worldwide audience, enhancing your conversion prospects. Credibility: Many sellers who offer their products or services through a C2C platform lack the credibility of a well-known vendor or the capacity to manage their own e-commerce platform. In these situations, having the "umbrella" of a C2C platform might be beneficial, as it can provide some legitimacy through the platform's guidelines and the opportunity to examine the background.	Drawbacks Competition: For some business owners, being in a market where numerous vendors offer a comparable product or service can be overwhelming, especially when they are competing against lower costs, better ratings, or higher quality products and services. Payment issues: Depending on the marketplace platform operator, there may or may not be a payment guarantee for completed transactions. Customers have misled C2C e-commerce sellers, according to client complaints. The issue may be tough to refute and address depending on the platform's guidelines. Platform Fees: Some platform providers may charge high-service sellers (and occasionally purchasers) a regular, recurring fee or a percentage of earnings for using the platform.

A B2C payment is one that occurs between a merchant and an individual for the exchange of products and/or services. You're participating in a B2C transaction when you go to the supermarket, petrol station, or any other retailer to make purchases for personal use rather than on behalf of an organization.

KEY TAKEWAYS:

• Consumers pay for goods and services under the B2C model at the moment of purchase or sometimes before they receive them.
• Consumers order things regularly but on a modest scale under the B2C paradigm.
• B2C payments are structured: payment size, payment frequency, and payment terms.
• B2C digital payments systems include: Digital Wallets, Digital Cash, Digital Accumulating Balance Payment Systems, Digital Credit Card Payment Systems and Digital Checking Payment Systems.

B2C Payment - B2C payment system and B2C payment solutions

According to Aite Group, businesses now send over 1.9 billion B2C payments each year, with around two-thirds of them sent electronically rather than via paper check. B2C is the "next wave of growth" in digital payments, according to Aite, who found that nearly three-quarters (74 percent) of U.S. households with consumers aged 18 to 65 have received "some forms of cash disbursement" in a research conducted some years ago.

Consumers aren't the only ones who benefit when businesses make rapid payments. The following are some of the business benefits of accepting digital B2C payments:

Increased client loyalty and engagement: Customers may be more inclined to conduct business with organizations that refund or pay them promptly. An insured person, for example, is more likely to like working with an insurance firm that provides reimbursement payments promptly. A freelancer is more inclined to work for a company that pays immediately rather than one that takes weeks or months to pay.

Instant disbursements are less expensive for businesses than paper-based payments. Even if your firm pays some card merchants' processing and transaction costs, the overall cost to you is likely to be less than the cost of purchasing checks and mailing them to individuals.

Increased income opportunities: The higher the demand for your B2C company's services or products, the more revenue opportunities you'll have. By optimizing your payment process, you may be able to give your staff more time to come up with fresh revenue-generating ideas.

Improved customer response: If your clients have requested different payment options or other means to get reimbursements other than paper checks, adding quick disbursements helps you to meet their needs.

Instead of cash, customers want options when it comes to how they pay. A study conducted by the Federal Reserve shows that B2C customers spent $105.3 billion on noncash payments. Among the B2C customers, the majority preferred debit cards, to the tune of $57.4 billion. Credit cards were used modestly by B2C payments, with $26.9 billion being spent by B2C customers

It's evident that now is the moment for businesses to rethink the payment experience in this digitally linked era. To effectively match today's consumer expectations, B2C businesses must ensure that the payment experience is:

• User-friendly
• Quick and adaptable
• Secure

Companies must accommodate customers' payment preferences and easily integrate any third-party payment systems they utilize into their existing brand messages in order to communicate with customers in one voice.

The future B2C payment trends for business

Technology for fraud protection is more faster and more effective now than it was a few years ago. What fraud-prevention measures do you require to protect your company and your customers' personal information?

We are seeing increasing in fraudulent activities as a rising number of firms move to the internet. Because fraudsters' attacks are becoming more complex, retailers must pay greater attention to fraud prevention measures.

There are some B2C protection tools for you to consider to help your online B2C business:

6.1. Blacklisting

Blacklisting allows you to keep track of and record users that behave strangely. You can efficiently combat fraudsters by excluding suspect users based on their geography, physical address, IP address, credit card information, email address, and other factors.

When a customer is blacklisted, the transaction is automatically refused the next time an order is placed from the same email or IP address. Although it appears to be a good solution, blacklists can also restrict legitimate clients. Cestimates that 40-70 percent of refused orders were valid and should have been authorized. As a result, blacklists are effective in blocking orders and filtering out fraudsters, but they also increase the number of erroneous declines.

Furthermore, fraudsters may employ techniques that "deceive" blacklists. For example, the information they supply while placing orders online is continuously changing.

6.2. 3D Secure Authentication

Technically, 3D Secure (Three Domain Secure) is a messaging protocol that involves three domains, such as bank, technology that processes the transaction, and the issuing bank.

3D Secure is an additional security layer for card-not-present transactions. The system is used to authenticate cardholder information and the first version usually requests a static password or PIN. Plus, the liability on every transaction that is successfully verified is shifted from a merchant to the issuing bank.

Although the introduction of 3D Secure to the market considerably increased online purchasing security, retailers experienced a decline in conversion as a result of the negative impact on the user experience. 3D Secure, on the other hand, is receiving a makeover

6.3.  Address Verification Service

In addition to CVV/CVC, the Address Verification Service (AVS) is utilized to verify whether a purchaser is the card's owner. It's a tool that looks at the billing information a customer provides during checkout. Another red flag is if the customer's address does not match the one on file with the card issuer.

A valid consumer, on the other hand, could make a mistake when supplying billing information or select a different delivery address. Another issue is that a scammer could be able to provide a legitimate address.

6.4. Velocity Checking

By monitoring each transaction, velocity checks are used to uncover fraud patterns in payment transactions. If the system notices the same consumer making multiple purchases in a short period of time (for example, the last 24 hours), the transactions will be reported as suspicious.

The checks might be based on data elements such as IP address, device ID, credit card number, payment method, billing address, and so on.

6.5. Geolocation

With geolocation, you may identify a consumer based on their IP address and the location of the device associated with their order, and the system will tell you whether they are in a high-risk country. Geolocation is a useful tool in the fraud scoring process since it gives useful data, but only when used correctly.

You must keep in mind that the client may make a transaction while traveling abroad, thus overly strict anti-fraud filters may reject a legitimate buyer. Furthermore, fraudsters might utilize proxies to disguise their IP address, making it more difficult to track their whereabouts. This is why proxy piercing technology may be required to detect a proxy address and determine the customer's true location.

6.6. Artificial Intelligence combined with Business Intelligence

Artificial intelligence-based solutions assist you in capturing data from a customer's contact with your website, allowing you to acquire vital information that you can use to better profile your offer in the future. This means you'll know how likely a customer is to make a purchase, how long they've been a client, and how likely they are to file a chargeback.

The more information you have about your customers, the better prepared you will be to take preventative measures. Greater data equates to more information, which translates to more commercial value.

7.1. US

According to statista, from 2009 to 2018, this statistic shows B2C e-commerce sales as a percentage of gross domestic product in the United States. In the United States, B2C e-commerce accounted for 1.24 percent of GDP in 2013.

B2C e-commerce rates of GDP in the United States from 2009 to 2018

The below statistic presents the percentage of U.S company sales over the internet as of February 2020, sorted by economic sector. During the survey period, respondents from the B2C services sector stated that 15.6% and the B2C products sector stated that 18.1% of their revenues were generated online.

The US company sales over the internet in February 2020.

7.2. UK

In Europe, the United Kingdom (UK) has the most developed e-commerce market. According to the Office of National Statistics (UK), the country's e-commerce revenue in 2019 totaled 693 billion GBP, up significantly from the previous year. Wholesale and manufacturing were the two largest industry sectors that generated the most e-commerce sales in the same year on a sectoral basis.

7.3 EU

According to statista, in Western European countries, business-to-consumer (B2C) e-commerce will account for 5.19 percent of GDP in 2020. The value is expected to rise to 5.48 percent of GDP in 2021, according to forecasts.

Across Western Europe, the number of people using e-commerce is rapidly increasing. In 2019, almost 70% of consumers in nations such as Denmark, Germany, and the Netherlands made an online purchase. As a result, the share of e-commerce revenue in overall revenue for businesses has surged like never before. E-commerce accounts for over 20% of total income in the European Union.

Increased utilization rates and increased business earnings are backed up by market value statistics. In 2021, the European e-commerce market will have the largest revenue, with 465.4 billion dollars. By 2025, revenue is estimated to reach $569.2 billion US dollars.

B2C e-commerce rates of GDP in Western Europe from 2017 to 2021

7.4 Japan

From 2009 to 2018, this below statistic shows B2C e-commerce sales as a percentage of Japan's gross domestic product. B2C e-commerce in Japan accounted for 1.01 percent of GDP in 2013.

B2C e-commerce rates of GDP in Japan from 2009 to 2018

7.5 Middle East and Africa

From 2009 to 2018, the below statistic shows B2C e-commerce sales as a percentage of the Middle East and Africa's gross domestic product. In the Middle East and Africa, B2C e-commerce accounted for 0.07 percent of GDP in 2013.

B2C e-commerce rates of GDP in the Middle East and Africa from 2009 to 2018

PayCEC 's omnichannel B2C payment platform satisfies the needs of all your end users by allowing them to pay anywhere, anytime, and via any device. By combining all of PayCEC's payment methods into one platform, we give your company more options. Our system is highly adaptable, requiring almost little technology resources to quickly offer a user experience that is unique not only to your industry, but also to your business.

The benefits from our services that include:

• Platform that is both intuitive and configurable

Platform that is fully customizable and mobile-friendly, as well as administrative and customer service features.

• Various payment options

Web, mobile, mail, SMS, in-person, and over the phone with an IVR (Interactive Voice Response) or a live customer service representative.

• There are numerous payment options available

(Mastercard, Visa, Discover, and American Express) debit cards, credit cards, and now Apple Pay is all accepted payment options.

• Digital alerts

Email, SMS, IVR (Interactive Voice Response) , and print & mail

• Compliant and safe

Strict security and compliance standards are used to protect payments at every touchpoint.

We have developed our payment API that helps merchants and buyers have the best service and protect them from scams.

Merchants can set up their online store in a blink of an eye and start to receive online card payments from customers with the PayCEC payment gateway. You can follow the below steps to install your payment platform:

Read more:

• B2B payment gateway
• What is Open Banking?
• Digital currency payment gateway
• What is the Second Payment Services Directive (PSD2)?
• What is difference between 2D and 3D payment gateway?
• 4 types of payment gateway - Advantages and disadvantages

About PayCEC

PayCEC’s best payment gateway for cryptocurrency was established in response to the growing need of businesses to accept the best payment gateway for cryptocurrency more quickly and easily. In the digital era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC’s best payment gateway for cryptocurrency is a truly global payments platform that not only allows customers to get paid instantly and securely, but also withdraws funds to their business accounts in various currencies.

We have created an open and secure payments ecosystem that entrepreneurs and businesses choose to securely transact with each other online and on any device. We proudly maintain the highest level of client advocacy in the industry.

PayCEC Team

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