A recent study by TreviPay, a U.S.-based B2B payments and invoicing network, reveals that the payment and invoicing experience significantly influences supplier selection among European business buyers. This is occurring alongside growing but uneven adoption of AI in purchasing processes.
The survey involved 550 business buyers from across Europe. Nearly eight out of ten respondents stated they frequently use AI technologies during B2B purchasing and payment operations, marking a substantial rise from previous years. AI is most highly valued for enhancing decision-making through data insights, according to 20% of the respondents, followed by fraud prevention and risk management at 16%, and streamlining manual tasks.
In Germany, where regulatory demands are particularly strict, AI adoption tends to be more cautious. Both France and Germany exhibit a strong preference for AI in improving invoice status visibility and automating the match between invoices and purchase orders, highlighting ongoing challenges related to invoice accuracy in these markets.
Invoicing Dominance and Persistent Challenges
Invoicing continues to be the primary method of payment for B2B transactions across Europe. Approximately 47% of buyers consider invoicing availability a key factor in choosing suppliers. Trade credit is widely used, particularly in the UK and Germany where 46% of buyers utilize it, but it is less common in Spain, which shows a higher demand for customized invoices at 93% compared to an overall rate of 82%.
Despite advances in digitalization, many challenges persist in the B2B procurement process. Issues such as incorrect invoices, limited integration with enterprise resource planning (ERP) systems, inconsistent invoice formats, and delays in approval processes remain prevalent. The extent of these issues varies across markets; 76% of German buyers reported difficulties with payment options, compared to just 37% in Spain. Company size also influences priorities, with larger businesses emphasizing ERP integration and purchase controls, while mid-sized companies prioritize speed and flexibility. In the UK, fast onboarding was highlighted as a crucial competitive advantage for suppliers.
Inez Berkhof-Hollander, TreviPay’s Vice President of EMEA, commented that payment and invoicing experiences now play a pivotal role in supplier selection throughout Europe, underscoring the importance of reducing friction at every stage of the procurement journey to secure repeat business and support sustainable growth.
