Association for Financial Professionals (AFP) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

When a company uses electronic payments, it is primarily engaging in Business-to-Business (B2B) transactions. In a B2B context, electronic payments facilitate efficient and streamlined processes between companies, enabling them to pay for goods and services without the delays and inefficiencies associated with manual payment methods. These payments can occur in various forms, such as direct bank transfers, wire transfers, or electronic invoicing and payment systems, making them particularly advantageous for managing accounts payable and receivable.

While B2C and C2B involve transactions where consumers purchase from businesses or businesses accept payments from consumers, respectively, these scenarios do not encompass the primary use of electronic payments by companies to transact with one another. C2C transactions typically involve consumers buying and selling from each other, often facilitated by platforms that handle the payment process. However, these are not the primary context in which companies utilize electronic payment methods.