How B2B Payment Gateways Work and Why Your Business Needs One

With more businesses selling and growing online, offering a smooth, secure ecommerce payment processing is a key part of driving sales. This can be harder if you’re selling to other businesses, since B2B payments, which often involve larger sums, extended payment terms, and more complex invoicing processes. That’s why it’s so important to choose the right B2B payment gateway.

A B2B payment gateway is designed to simplify the payment process, providing businesses with a secure and automated way to accept and process payments. Whether you’re dealing with B2B instalment payments, cross-border payments, or one-off transactions, the right payment gateway can improve cash flow, reduce administrative workload, and enhance your customer experience.

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What is a B2B payment gateway and how does it work?

A B2B payment gateway is a technology platform that facilitates digital payments between businesses. It acts as a bridge between buyers, sellers, and financial institutions, ensuring that payments are processed securely and efficiently.

When a customer initiates a payment, the gateway:

• Encrypts payment details to protect sensitive financial information.
• Sends the transaction request to the acquiring bank or payment processor.
• Authorises or declines the payment based on the customer's account status.
• Facilitates fund transfer from the buyer’s account to the seller’s account.

However there is a cost to this service. While payment gateways streamline B2B transactions, they also come with processing fees and potential settlement delays, particularly for credit card payments. 

How to choose the best B2B payment gateway for your business

The right B2B payment gateway should fit with your company’s financial needs and transaction volumes that you need to process. When evaluating options, consider:

• Transaction speed: Can it process payments instantly, or will funds take days to settle?
• Payment methods: Does it support bank transfers, business credit cards, and B2B Buy Now Pay Later (BNPL)?
• Integration capabilities: Can it sync with your accounting software, CRM, or ERP system?
• Security & compliance: Does it offer encryption, fraud detection, and regulatory compliance?
• Transaction fees: Are there hidden charges, or is pricing transparent?

For businesses looking to eliminate unnecessary costs and settlement delays, iwocaPay’s Pay Now feature offers an instant, fee-free bank transfer option, making transactions seamless and cost-effective​.

The benefits of using a B2B payment gateway for wholesalers

Wholesalers manage high-value transactions, frequent buyers, and varying payment terms. A B2B payment gateway offers additional advantages for wholesalers, including:

• Faster payments via automating invoicing and collections to reduce waiting times.
• Greater flexibility, supporting multiple payment methods to suit the needs of your customers.
• Lower administrative workload, since it reduces the need for manual payment tracking.
• Enhanced security, protects against fraudulent transactions with encryption and secure logins.

However, in practice, wholesalers can struggle with card processing fees and delayed settlements, which can damage cash flow. An alternative such as iwocaPay Pay Now means wholesalers can accept instant, fee-free bank transfers, ensuring they receive full payment without deductions​.

How payment gateways handle credit cards and invoicing in B2B transactions

Business credit cards are a common way of making online B2B payments, but making these payments flow requires connecting multiple elements of the payment chain.

A B2B payment gateway streamlines this complexity by:

• Processing credit card transactions securely, preventing fraud and chargebacks.
• Automating invoicing and payment reconciliation to reduce errors.
• Supporting flexible payment terms, sometimes including trade credit and instalment plans.

However while credit cards remain popular for B2B transactions, they also come with high processing fees and the potential for delays and chargebacks. 

What are the challenges of using a B2B payment gateway and how to overcome them?

While B2B payment gateways streamline transactions and improve efficiency, businesses can face several challenges when implementing them. Below are some common issues and ways to overcome them.

1. High transaction fees

Many B2B payment gateways charge processing fees, especially for credit card transactions, which can reduce the profit margins you make on each sale.

One way around this is to focus on bank-to-bank transfers or direct debit options to minimise costs, over credit cards. Solutions like iwocaPay’s Pay Now provide instant, fee-free bank transfers, avoiding expensive card fees.

2. Slow settlement times

Some payment gateways take days or even weeks to transfer funds, which means waiting longer to get paid.

Choose gateways that offer faster settlement times, or opt for solutions that provide instant access to funds.

3. Integration challenges

Not all payment gateways integrate with existing accounting, CRM, or ERP systems, leading to additional manual work and payment reconciliation issues.

Luckily, there are many gateways that offer pre-built integrations with your software stack. Platforms like Stripe, Adyen, and iwocaPay provide plug-and-play integrations.

4. Security and compliance

Handling large B2B payments means your business needs to consider fraud prevention, data encryption, and regulatory compliance.

Using a PCI-compliant payment gateway with in-built fraud detection tools and encryption standards can put you in a stronger position to protect your customers. 

5. Limited flexibility

Traditional payment gateways that are mainly built for credit cards may not support B2B Buy Now, Pay Later (BNPL) options or trade credit, limiting your ability to offer trade credit accounts to your customers.

iwocaPay’s B2B BNPL feature allows buyers to spread payments over 3 to 12 months, while sellers receive full payment upfront, helping you improve your cash flow without taking on credit risk.

Top B2B payment gateway service providers in 2025

With the UK B2B payment market growing over 8% year-on-year, there are a wide range of providers available to optimise your B2B ecommerce processing. Here are some of the top options in 2025:

• Stripe: One of the largest providers, their size enables them to offer larger transaction volumes, which can be ideal for global businesses needing custom API-driven payment solutions​.
• GoCardless: Specialising in direct debit and recurring payments​.
• Worldpay: As the name suggests, they offer multi-currency support and strong security for high-risk transactions​.
• iwocaPay: Perfect for businesses looking for instant, fee-free bank transfers and B2B BNPL options​.

What is the best B2B payment gateway for my business?

The best B2B payment gateway for your business depends on your industry, transaction volume, and preferred payment methods. iwocaPay’s Pay Now provides a fast, fee-free alternative to card payments, allowing businesses to receive instant bank transfers without transaction costs. The right choice depends on whether you prioritise speed, cost-effectiveness, or integration with existing systems.

Can you integrate a B2B payment gateway with salesforce commerce?

Many B2B payment gateways integrate with Salesforce Commerce Cloud, allowing businesses to:

• Automate invoicing and payment processing, reducing manual admin.
• Offer multiple payment methods directly through Salesforce checkout.
• Improve financial reporting by syncing transaction data.

How do I integrate a B2B payment gateway with Salesforce Commerce?

To integrate a B2B payment gateway with Salesforce Commerce, businesses can use Salesforce Commerce Extensions or direct API integrations. Extensions allow companies to customise checkout, pricing, and payment processing, which involves registering an extension class, mapping it to the store, and configuring it via Salesforce CLI.

Can I offer BNPL or trade credit with a B2B payment gateway?

Yes, B2B payment gateways like iwocaPay allow businesses to offer trade credit or Buy Now, Pay Later (BNPL), enabling buyers to place larger orders with flexible payment terms while ensuring sellers get paid upfront. iwocaPay’s B2B BNPL solution allows buyers to spread payments over 3 to 12 months while sellers receive full payment immediately.

How to choose the right payment gateway for your business 

A B2B payment gateway is essential for businesses that need secure, streamlined payment processing. However, traditional gateways often come with high transaction fees and long settlement times, especially when it comes to card payments.

If you’re looking for a faster, cost-effective alternative, iwocaPay enables instant, fee-free bank transfers and B2B BNPL, giving your customers more flexibility while ensuring you get paid in full without delays.

• Instant access to funds: No waiting for settlement delays.
• No transaction fees: Unlike traditional gateways, iwocaPay does not charge fees for Pay Now transactions.
• Secure, streamlined payments: Customers pay directly from their bank, reducing fraud risks.

Flexible payment options: Buyers can choose to pay immediately or spread payments over time with B2B BNPL.