As one of the most popular eCommerce choices for independent distributors, we at Pepper are lucky enough to have a unique vantage point on the industry. Serving billions of dollars in GMV and processing millions in payments a week, we have enough volume flowing through our platform to be able to recognize broader trends and patterns for the industry as a whole.

With payments being a core concern for distributors, I wanted to weigh in with what we are seeing. As the head of product for our payments platform, a few key trends have popped out to me that I’d like to share with the broader world.

Operators Expect to Pay Where They Order

The bar for B2B software is set by the best consumer products, and payments are no different. Customers are busier than ever, and simplifying their payment process is crucial. By integrating payments directly into the ordering platform, distributors remove the friction of manual payment handling. When customers can pay in the same place they order, they are more likely to complete transactions on time:

• Digital payments adoption has increased by 22% in Q1, reflecting a shift toward more seamless payment experiences.
• Chargebacks are down as frictionless payment methods lead to fewer disputes and better customer satisfaction.

Customers Are Increasingly Willing to Be Put on a Recurring Payment Schedule

Autopay is becoming a preferred approach for payments, reducing administrative burdens for both distributors and their customers:

• Autopay adoption rose by 30% from January to March, signaling growing trust in automated solutions.
• Convenience drives this trend—customers no longer have to remember to make manual payments, improving cash flow predictability for distributors.
• For distributors, this is a welcome surprise! AR teams love simpler and more consistent collections, so when they see this succeed they push for more momentum

Plaid Is Taking Off

Plaid, a service that makes it easy for operators to log in and connect bank accounts through Pepper, is rapidly gaining traction among customers.

• As opposed to entering ACH information, it’s fast and easy to connect accounts - lowering friction for linking bank accounts means quicker, more reliable payments.
• Distributors benefit significantly, as customers authenticating with Plaid see a 90% reduction in chargebacks—a game-changer for financial stability and security.

Distributors Want to Move Away from PDF Statement Emails

Traditional PDF statements are becoming obsolete as the industry shifts toward dynamic, interactive payment solutions.

• "You can’t pay from a PDF." Static documents require extra steps to complete payments, leading to delays.
• Dynamic online statements empower customers with real-time visibility and seamless payment options, improving efficiency and reducing overdue balances.

Predictions For the Future

As we continue to look at ongoing trends amongst the broader distribution community, there’s a few predictions we have for what we might see continue to evolve over the near future:

• Restaurants and operators are going to be willing to pay on time, even early! But - they’re going to want a discount for early payment, and in-app payment credits need to be available and obvious for early remuneration
• While most operators already function under a “buy now pay later” model (because they get goods first and pay afterwards), they are going to be more willing to be put on specific plans or schedules to pay so they can keep their payments consistent - consistency in their P&L is going to continue to become valuable, especially with our current economic headwinds

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Closing Thoughts

As we continue to evolve our payments platform to fit the needs of distributors (like you!), we will keep having an eye out towards the direction that we see our industry headed. Have any thoughts on what we discussed here? Feel free to connect with me on Linkedin or talk to your account manager - I love talking to customers!