Global B2B Payment Market 2024-2030

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    B2B PAYMENT MARKET

    KEY FINDINGS

    • B2B payment market saw a significant transition through the years and when people are locked down in their homes, it forced them to use digital platform instead of paper.
    • Comparing to B2C, B2B payments is lagged behind it in adoption.
    • Booming e-commerce industry, increasing trade activities, relevant government initiatives for cashless economy in developing countries and technologies like the Blockchain, Automation are becoming the key growth drivers of the sector.
    • The key players of the sector such as American Express Co., Bottomline Technologies, Ant Financial Services, Coupa Software, JP Morgan Chase & Co, Mastercard Inc, etc brought unique features and special offers to attract more customers.
    • The industry is going to get a major growth if people can adopt the digital platforms, as the automated process will make the payments more quicker, safer and cheaper.

     

    INTRODUCTION

    B2B payment is the largest segment of the global payment market. Driven by the expansion of the technology powered B2B payment offerings of leading FinTech companies and adoption of E-commerce by businesses, corporate payments are digitalized and robust growth is expected in next ten years.

     

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    B2B payments across the globe have seen a steady change from paper checks to digital payments and invoices. With new technology and innovations, switching from paper check to digital payments is easier. Industries benchmarks are adapting towards faster and more efficient solution, it is only a matter of time before B2B payments will turn truly global and digital in nature.

     

     

    B2B PAYMENT MARKET DYNAMICS

     

    Consumer’s preference towards online payment is increasing, as it lowers the risk. While digital and wire payments have seen an increase, check payments have been decreasing yearly.

    Online card payments and mobile wallets have been the digital alternatives for payment of goods and services. Digital payments have the benefit of quick and easy integration and lowering the processing cost for the users, and a better cashflow for the business.

    Technological shift towards digitalization, growing consumer’s preference for instant and real time payments, will help the market to grow.

    Even though B2B market is gaining huge digital avenue, it’s not easy for people to shift to digital payments from existing physical payments, due to high cost and time involved in the switching. So the growth rate might be little slow, but it is definitely increasing.

    Due to highly competitive market, collaboration between digital payment players and cross border payment providers has led to an increase in quick and cheap digital payments. Across borders, payments can be slow and expensive, due to which banks pull back from correspondent banking because of risk and compliance concerns, these leads to limiting of new potential businesses.

    Booming e-commerce sector, trade activities, relevant government initiatives for cashless economy in developing countries and the Blockchain, AI, is expected to help the sector simplify the B2B payment system to the further revenue growth of the industry.

    In 2017, Mastercard established its B2B payments center and Visa, its B2B Connect in 2016, rolling out across 30 countries in next few years. This is boosting the adoption of B2B payments functionality. Also, there is increasing investment by venture capital and private equity funds in the industry.

    Still compared to B2C, electronic B2B payments has significantly lagged behind in adoption. Multiple card networks and payment processing companies providing blockchain-enabled solutions that can improve protection and decrease transaction times. To use of these technologies and making these solutions viable involves the approval of business partners, and also various markets have separate rules regulating these payments.

     

     

    B2B PAYMENT MARKET RECENT TRENDS

     

     

    Aerotruth, a startup specialised in B2B onboarding, has added LuLu Financial Holdings in Abu Dhabi and Nepali money transfer firm Samsara Remit to its platform.

     

    Aerotruth’s platform is meant to make B2B onboarding for FinTechs and banks or other financial institutions as simple as possible. LuLu Financial Holdings’ FinTech branch, Digit9, needed to streamline its partner onboarding process, and Aerotruth assisted them. Meanwhile, the goal was to eliminate manual onboarding and replace it with a digital-first approach that provided better user experiences.

     

    As firms onboard new and existing partners, Aerotruth’s platform controls document exchanges. Clients of Aerotruth can also network with one another, providing a prequalified route for collaboration and network expansion.

     

    SellersFunding, an ecommerce FinTech company, is introducing two new working capital products to expand its resources for small enterprises. SellersFunding will be able to expand its operations outside of the eCommerce market and into wholesale with the addition of two additional products: invoice factoring and purchase order (PO) financing.

     

    SellersFunding is a financial technology platform that streamlines worldwide trade in the areas of working capital, cross-border cash management, and business valuation.

     

    Because SellersFunding is already known for providing long-term non-dilutive financing, adding products like Factoring and PO Financing was a natural progression to help clients with their cash flow.

     

    Through new and existing partners, brokers, and its existing portfolio of clients, the company wants to deliver the Invoice Factoring and PO Financing products to both local and international small businesses.

     

    Given that credit underwriting and client onboarding methods are consistent across product lines, they expect to swiftly expand their Asset-Based Lending offering to businesses that have a proven track record of strong sales and customer service with their account debtors.

     

     

     

    B2B PAYMENT MARKET SEGEMENTATION

    By Transaction Type: Traditional and digital

    By Business Segment: Small sized business, Medium sized business, and Large sized business

    By Operating Channel: Cross border and domestic

     

     

    B2B PAYMENT MARKET COVID 19 IMPACT

    After COVID-19, most of the businesses are severely affected, for safety concerns, people choose to do online transactions and this will help the market to grow digitally if businesses start to use digital payments and move with the phase.

    Owing to the pandemic, customer payment preferences have changed. With ‘ease of use’ being the new target, B2C behaviors have been carried over to B2B. Millennials who make up a significant proportion of North America’s workforce, pushing the transition online.

    The pandemic weakened the growth of B2B cross border payment. Businesses are now more cost conscious. Vendors of cross-border payments must give companies convincing cost ideas, or they will not be able to recover the lost traffic.

    The three big changes that the pandemic bring in B2B payment sector are, Decentralization, AP Automation and no touch payments.

     

    B2B PAYMENT MARKET SIZE AND FORECAST

    Global B2B payment market is expected to be $38 trillion by end of 2020 and expected register with CAGR of 10%. So, looking at the amount accounted in B2B market, it is no mystery that speed is the key for digital market growth in the financial world.

    Features like speed, coupled with irrevocability, and to make and receive payments after bank hours signifies important change. But with all the positive features, there are other factors which are impacting the slow growth i.e. due to easy access to internet, hackers can easily track and steal data, and this leads to data breech and increases the risk for payments.

    To let the market, grow digitally, government needs to invest in the cybercrime system and reduce the risk and this in turn will help businesses to adopt digital payments.

    Even though banks services are slow and expensive they dominate the market, and there is a need for collaboration between central banks across the world to make real time payments a reality.

    Banks inefficiencies are opening doors for non-bank players and new infrastructure demands in not limited to domestic payments. Non-bank payments are dominating domestic market, due to its ease of online transaction and the applications available for the businesses are so wide to explore and makes it easy for the cashflow in the business.

     

    B2B PAYMENT MARKET COMPETITIVE LANDSCAPE

    The key players operating in the global payment market are American Express Co., Bottomline Technologies, Ant Financial Services, Coupa Software, JP Morgan Chase & Co, Mastercard Inc, etc.

    The target market has high competitive scenario as there is high presence of players operating.  B2B payment transaction market is highly competitive as major players are providing various cash back offers and discounts on transactions in order to attract more customer base.

    American Express partnered with accounts-receivable software company Invoiced on May 2020 to help the credit-card company’s customers with an exclusive offer for 40 percent off an Invoiced subscription for the first two years. This a significant move by the company during pandemic. In November 2020, the company also enhanced the Early Pay feature in US, which will help buyers have greater control of their accounts payable process for their B2B payments, generate extra cash from early payment discounts and finance their payments if need the working capital.

    Coupa makes effective and easy domestic and cross-border payments, allows one to maximize returns from solutions for working capital, and provides automated payment reconciliation with end-to-end visibility of data. Coupa claims to provide all the benefits of the banks’ vCards, plus all the controls and integration of the leading BSM platform. They also came to help for SMB’s, as they say it is their unique strategy during pandemic

    MasterCard alliance with Enkash to bring B2B digital payment automation platform in the emerging markets of India. Earlier in 2020 they launched Mastercard Track in US to encompass all of the company’s “current and future B2B payment products.”

     

    B2B PAYMENT MARKET INCORPORATION OF AI AND MACHINE LEARNING

    Thriving e-commerce sector and introduction of new technologies like artificial intelligence, machine learning, big data analytics, and block chain help financers simplify B2B payment.

    Reducing human errors and increasing efficiency and better cash flow for the business is the key focus of any business. AI and machine learning helps with fraud detection and prevention of cybercrime. Handling cybercrime is an important aspect of secure payments. Lesser errors increases efficiency of payment process and speeds up the processing time.

    Artificial intelligence and machine learning helps in identifying alternative suppliers and provides crucial information to partners and collaborates quickly.

     

    B2B PAYMENT MARKET THE WAY AHEAD

    The world is driven by innovation, infrastructure building and regulation. All of which, in turn, makes B2B payments faster, better, cheaper and more relevant to look at as a primary business lever than ever before.

    Developing real time payments, enabling check to E-payment capability, digitizing payments and currency through stable coins and cryptocurrencies, improving cross border payments, integrating card-based models into current processes and systems will help in much better B2B digital market growth.

     

    B2B PAYMENT MARKET COMPANIES PROFILED

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
    19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
    20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
    21 Product installation rate by OEM, 2021
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2021
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
     
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