Remote payment in food-processing industry

The food-processing industry represents around 55,000 companies, the vast majority of which are small and medium-sized enterprises, with a turnover of 212 million euros in France and 47,500 million euros in exports. France is the leading industrial sector in terms of employment and turnover, and ranks 5th in the world in terms of agri-food exporters. It is also the leading agricultural power in Europe.

Aware of new purchasing models, this sector is increasingly using ICT (information and communication technologies). At the beginning of 2020, two out of three agri-food companies have a website, 70% in 2017 and 73% in 2019. Of these two out of three companies, 54% sell online, which in 2018 represented 8% of the total turnover generated (source Insee/Agreste).

Depending on the various government directives and consumption patterns, the food industry sector must adapt and innovate to meet regulations and customer needs.

Even though more than 70% of food-processing companies have a website, the sector is only just beginning to embrace digital technology. But to be able to face the instability of the market, especially after a health crisis, the players in the agri-food industry must integrate commercial agility into their activities.

Working practices are therefore being disrupted and e-commerce in the food industry represents a significant new distribution channel, mainly in BtoB.

Furthermore, companies that cannot quickly adapt to the new European directives (order of 30 June 2021) risk being left behind. The agri-food industry will therefore undergo profound changes in the medium and long term.

The Council of Ministers of 1 September 2021 ratified the ordinance n°2021-859 of 30 June 2021 on unfair commercial practices in business-to-business relations within the agricultural and food supply chain.

This directive establishes a harmonised European framework for all Member States and ensures a minimum level of protection between professionals in the agri-food sector in the fight against unfair commercial practices.

This order enshrines several restrictive practices of competition:

• Refusal to confirm the terms of a contract in writing
• Late cancellation of an order
• Obtaining, using and disseminating business secrets
• Excessively long payment periods

Effective from 1 November 2021, food industry players have one year to bring current contracts into compliance.

Payment periods in the food-processing industry are therefore set to shorten considerably within a year, but how can they be adapted to meet the new directives?

The reduction of payment periods is one of the challenges of this new directive. These periods are often lengthened due to the impossibility of instant payment, and a long period of time can sometimes elapse between the invoicing and the initiation of payment by the debtor, so the implementation of a remote payment solution will soon be the norm.

Remote payment is most often in the form of payment links sent by e-mail or SMS. Remote payment allows you to facilitate and secure your remote or mobile collections. You edit your invoice with a description, reference, etc., your customer receives a payment link in his mailbox or by sms and he can directly make a remote payment by bank card. You can also choose other payment methods such as direct debit, bank transfer, etc., depending on the services offered by your payment provider.

You gain in speed and shorten your payment times, your customers pay in real time, and improve your customer relations thanks to frictionless sales.

As a payment service provider, CentralPay assists you in setting up a remote payment solution enabling you to make remote payments by bank card, SEPA transfer, SEPA direct debit, e-wallet.