Plenty has changed in how businesses send and receive payments—and it’s happening fast. As vendor lists grow and teams rely on different tools, it’s easy for payments and invoices to get out of sync.
A B2B payment gateway helps bring that under control by handling payments securely and reducing the back-and-forth between systems.
Unlike consumer platforms that prioritise speed and convenience, B2B payment platforms are designed to handle bulk transactions, credit terms, and custom approvals.
With providers like Pine Labs, businesses gain access to tools that reduce manual errors, support scalability, and improve cash flow control. The result is a payment system that fits into your operations without slowing them down.
What are B2B payment gateways?
In business settings, payments aren’t always straightforward. Unlike simple checkout flows for customers, B2B transactions can be larger, repeat on a schedule, or involve multiple steps before the money even moves. That’s where a B2B payment gateway helps—it’s built for this kind of complexity.
They also connect with the software you’re already using. Whether it’s your accounting system or invoicing tool, a good gateway saves time by syncing data automatically. It’s not just about speed—it’s about reducing errors and making sure everything matches up without extra effort.
This is particularly useful for:
- Invoice payments
- Subscription billing
- Cross-border transactions
Types of B2B payment gateways
- Hosted payment gateways redirect the buyer to a third-party site to complete the transaction. They’re easier to set up and maintain compliance but can feel disconnected from your brand’s experience.
- Non-hosted gateways allow the transaction to happen on your own website or platform, giving you more control over the customer experience and data security.
Key benefits of using a B2B payment gateway include:
- Faster processing of large or recurring payments
- Automatic reconciliation and easier tracking
- Strong security measures (e.g., PCI-DSS compliance)
- Better control over cash flow and vendor relationships
Best B2B payment methods for businesses
No single method covers every situation when you’re paying other businesses. It often depends on who you’re dealing with and how your internal processes are set up.
- Bank transfers—like NEFT and RTGS—are still widely used. NEFT is fine if the payment isn’t urgent. RTGS works better when you’re moving larger sums and need it done quickly. Most businesses trust these because they’ve been around and don’t cost much.
- Cards (credit or debit) are quick and easy but not always cheap. The fees can be problematic if you send frequent or high-value payments. That’s why they’re mostly used for smaller bills or online vendor payments.
- Wallets such as Paytm or PhonePe are convenient for low-value transfers, but only if the other party uses the same app. They’re great for day-to-day stuff, not bigger deals.
- Platforms like Razorpay, Stripe, or PayPal come with added features. They’re useful for subscriptions or international transfers, though the charges—especially for cross-border payments—can be steep.
- Some businesses are giving crypto a shot for overseas payments. It’s faster and sometimes cheaper, but it still carries risks due to price swings and unclear rules in many regions.
Here’s a comparison table to break down the pros and cons of each method:
| Payment method | Pros | Cons |
| Bank Transfers (NEFT/RTGS) | Widely accepted and regulated Low transaction costs Secure for large payments | NEFT is not real-time RTGS only available during banking hours |
| Credit/Debit cards | Instant payment processing Widely accepted Easy for one-time payments | Higher transaction fees (1.5–3.5%) May have lower transaction limits |
| Digital wallets | Quick and convenient Low fees Ideal for smaller transactions | Device-dependent security Not always suitable for large payments |
| Payment platforms (e.g., PayPal, Stripe, Razorpay) | Good for recurring payments Strong reporting tools Supports global transactions | Higher fees for cross-border payments May require technical setup |
| Cryptocurrency | Fast global transfers Lower fees for international payments No intermediaries | Price volatility Regulatory uncertainty Limited acceptance |
How to accept B2B payments online: A step-by-step guide
Setting up a B2B payment gateway is a practical way to manage business payments online. Whether you’re handling one-off invoices or recurring transactions, the right setup makes a big difference in how smoothly your operations run. Here’s how to get started:
Step 1: Choose a payment gateway provider
Look for one that suits your business in terms of pricing, support, and integration. Consider:
- Transaction fees
- Compatibility with your website or ERP system
- Quality of technical support
Pine Labs, for example, offers reliable API-based integrations and responsive service for businesses handling regular B2B payments.
Step 2: Open a merchant account
This is essential for receiving funds. The payment provider will guide you through verification and compliance checks before activation.
Step 3: Integrate with your platform
Use the APIs or plugins provided to connect the gateway to your website or backend system. If needed, ask your developer or IT team to help with this step.
Step 4: Set up payment options
Decide what methods to accept (bank transfer, UPI, cards), and customise the payment flow to match your workflow.
Step 5: Test and go live
Before accepting real payments, run test transactions to check everything works as expected.
Why businesses need a B2B payment gateway
Paying other businesses might seem simple until you’re actually doing it at scale. One team sends invoices, another chases approvals, and payments go out on different schedules. Add in a few disconnected systems, and it’s easy for things to get messy.
- One of the biggest upsides is cash flow. Faster payments mean you’re not left waiting days for funds to land, which makes it easier to manage your working capital and plan ahead.
- Security matters, too. When you use tokenisation or encryption, it’s harder for the wrong people to access your payment details.
- Matching payments with invoices can also take up a lot of time. But when the gateway connects directly to your accounting system, it takes care of most of that work in the background—so your finance team doesn’t have to keep chasing numbers.
As your transaction volume grows, you need systems that can handle the load. Pine Labs offers payment tools that don’t need constant tweaks just to keep things running.
B2B vs. B2C payments: Key differences
B2B and B2C payment methods may seem similar on the surface, but they work very differently behind the scenes. The way businesses pay each other is often more layered and structured than how consumers make everyday purchases.
- The first major difference is transaction size. B2B payments are usually much larger, often involving bulk orders or services under long-term contracts. These payments may require detailed invoicing, approval chains, or even formal agreements before the money moves.
- Then there’s the matter of payment methods. B2C transactions tend to rely on consumer-friendly tools—credit or debit cards, UPI, or digital wallets. In contrast, B2B payments often use bank transfers, purchase orders, and invoicing systems with flexible credit terms built in.
- Frequency also sets them apart. Businesses usually pay suppliers or partners on a recurring schedule—weekly, monthly, or based on milestones. Meanwhile, B2C purchases are typically one-off and immediate.
- Finally, security and compliance are more demanding in the B2B space. With higher amounts at stake, businesses must follow strict standards, like PCI-DSS, and use systems that protect against fraud and data breaches.
Here’s a comparison chart between the two types:
| Aspect | B2B payments | B2C payments |
| Transaction size | High-value transactions, often in bulk | Lower value, individual purchases |
| Payment methods | Bank transfers, invoices, purchase orders | Credit/debit cards, UPI, wallets, net banking |
| Frequency | Recurring or scheduled payments (e.g., monthly, milestone-based) | One-off or ad-hoc transactions |
| Complexity | Involves multiple stakeholders and approval workflows | Typically a single buyer decision |
| Payment terms | Often includes credit periods (e.g., Net 30, Net 60) | Immediate or pre-paid payments |
| Reconciliation | Requires integration with accounting/ERP systems | Basic, typically auto-reconciled at the point of sale |
| Security & compliance | High security with compliance needs (e.g., PCI-DSS, audit trails) | Standard security, fewer compliance requirements |
| User experience focus | Built for operational efficiency and control | Built for speed, convenience, and simplicity |
Future of B2B payments in India
Digital payment systems in India’s B2B sector are advancing rapidly. More businesses are moving away from paper-based processes and adopting tools that help them manage payments in real time. This shift isn’t just about convenience—it’s changing how companies operate at scale.
- One major development is the growing use of real-time payment systems, particularly UPI. Although originally built for consumers, many businesses are now using UPI for fast, direct settlements that improve cash flow and reduce delays.
- Blockchain isn’t just hype anymore—some banks are already using it for cross-border transfers. Axis Bank, for example, has teamed up with international partners to let clients move money overseas around the clock. It’s faster, and there’s less overhead.
- More payment tools are quietly adding AI into the mix. It’s being used to spot fraud, flag anything unusual, and even handle account reconciliation automatically. That means fewer mistakes and less time spent chasing errors.
- Government programmes like Digital India are still pushing businesses—especially smaller ones—toward digital systems. The goal: make payments smoother, reduce the reliance on cash, and bring more businesses into the formal economy.
How RBI guidelines are shaping B2B transactions
The Reserve Bank of India (RBI) has been rolling out stricter rules on digital payments, and they’re already changing how B2B transactions work.
- Take tokenisation, for instance. Instead of storing card numbers, businesses now need to use secure tokens from payment providers. It’s one of the key ways to reduce data leaks and protect payment info.
- There’s also the push for two-factor authentication. Whether it’s an OTP or fingerprint check, the idea is to make sure only the right person approves a payment—not just anyone holding the card.
- Recurring payments have new rules too. If you’re charging customers regularly, you’ll need to get their consent upfront. For anything above Rs. 15,000, you have to send a heads-up 24 hours before the money is debited—and get extra approval.
To wrap up
Understanding how a B2B payment gateway works can make day-to-day operations much smoother. Whether tracking regular invoices, sorting out payments across teams, or making sure the money comes in on time, having one system that does it all helps.
With more business happening online, using secure digital tools isn’t just a nice-to-have anymore. It’s becoming the standard. The right platform can save time, reduce errors, and grow with your needs.
Not every business has the same way of handling payments. If yours could use something more reliable, it might be worth looking into what Pine Labs Online has to offer. You won’t need to change everything—you can usually just plug it in and get going.
Contact us today to explore what’s possible for your B2B payment setup!