B2B Payments Market to Grow with a CAGR of 9.45% Globally through 2028
The growing adoption of open banking and increasing
adoption of digital technologies are factors driving the global B2B payments
market in the forecast period 2024-2028.
According to TechSci Research report, “Global B2B
Payments Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global B2B Payments Market stood at USD 130.34
trillion in 2022 and is anticipated to grow with a CAGR of 9.45% in the
forecast period, 2024-2028. Global B2B payments encompass the financial
transactions between businesses on an international scale. These payments
facilitate the exchange of goods, services, and funds across borders,
underpinning the global economy. Key drivers shaping this landscape include
digitalization, which is replacing paper-based processes with electronic
solutions, fintech innovation, offering streamlined and cost-effective payment
options, regulatory reforms to ensure transparency and compliance, and
globalization, as companies expand their operations internationally. While
these trends promise efficiency and convenience, challenges such as currency
conversion, regulatory complexity, security, and payment system
interoperability must be navigated. In summary, global B2B payments are
evolving, reflecting the changing dynamics of global commerce.
One of the most significant trends in global B2B
payments is the rapid digitalization and automation of financial processes.
Traditional paper-based methods, such as checks and invoices, are increasingly
being replaced by digital solutions. This transformation is driven by the
pursuit of greater efficiency, accuracy, and convenience in financial
transactions.
Electronic payments, including bank transfers,
electronic funds transfers, and digital wallets, have become the norm for B2B
transactions. These methods offer speed, security, and the ability to initiate
payments remotely, making them ideal for cross-border payments. Businesses can
initiate payments with just a few clicks, reducing the time and effort required
for financial transactions.
E-invoicing is another crucial component of
digitalization. Instead of mailing paper invoices, businesses now send and
receive electronic invoices, streamlining the billing process. E-invoicing
reduces manual data entry, minimizes errors, and accelerates payment cycles. It
also enhances transparency by providing a digital trail of invoices and
payments.
API integration is yet another facet of digital
transformation. Application Programming Interfaces (APIs) allow for seamless
integration between payment platforms and other business systems. This
integration enables real-time data exchange and the automation of payment
processes. For example, payments can be triggered automatically when specific
conditions are met, such as the completion of a project milestone.
Blockchain technology is also contributing to
digitalization by providing a secure and immutable ledger for transactions.
Smart contracts on blockchain platforms can automate payment processes,
ensuring that funds are released upon the fulfillment of predefined conditions.
Blockchain enhances trust and transparency in cross-border B2B payments.
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spread through XXX Pages and an in-depth TOC on "B2B Payments Market”.
Global B2B payments operate within a complex web of
regulatory frameworks and compliance requirements. Governments and
international bodies are continually updating regulations to combat money
laundering, prevent fraud, ensure tax compliance, and promote fair trade
practices.
Anti-Money Laundering (AML) and Know Your Customer
(KYC) regulations are particularly stringent, requiring businesses to conduct
thorough due diligence on their partners. Compliance with these regulations
necessitates extensive documentation and the impleentation of robust due
diligence processes.
Payment Services Directive (PSD2), a regulatory
framework in Europe, has opened up the payment industry to new players by
mandating that banks grant third-party providers access to customer account
data and payment initiation services. This has led to the emergence of
innovative payment solutions and improved customer experiences.
The global B2B Payments market is segmented into payment
type, enterprise size, payment method, industry
vertical, regional distribution, and company.
Based on industry vertical, the market is segmented
into manufacturing, it and telecom, metals and mining, energy and utilities,
others.In the realm of global B2B payments, the IT and Telecom sector stands
out as the fastest-growing segment. This growth is propelled by the sector's
relentless innovation, rapid globalization, and the increasing reliance on
digital technologies. As businesses worldwide invest heavily in IT
infrastructure and telecommunications services, the demand for efficient and
secure cross-border payments within this sector has surged. Innovations such as
cloud computing, 5G connectivity, and cybersecurity solutions have accelerated
the need for seamless B2B payment methods. As IT and Telecom continue to shape
the digital landscape, their impact on global B2B payments is undeniable,
driving ongoing transformation and modernization.
Major companies operating in Global B2B Payments Market
are:
- Payoneer Inc.
- TransferWise Ltd
- JPMorgan & Chase
- Square, Inc.
- Stripe
- Mastercard
- American Express
- Paystand Inc.
- Visa Inc.
- PayPal Holdings, Inc.
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“Global B2B payments represent the vital financial
transactions between businesses worldwide. These payments are undergoing a
significant transformation driven by digitalization, fintech innovation,
regulatory reforms, and the globalization of businesses. Digitalization and
automation are streamlining payment processes, while fintech disruptors offer
innovative solutions. Regulatory compliance and security challenges are
ever-present, requiring robust risk management and compliance measures. As
companies expand their global reach, the complexity of cross-border payments
becomes apparent, necessitating efficient currency management and supply chain
financing. Blockchain and cryptocurrency integration hold promise for further
revolutionizing B2B payments. In summary, global B2B payments are evolving
rapidly, offering both opportunities and challenges in an increasingly
interconnected business world,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“B2B
Payments Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Payment Type (Domestic Payments, Cross-border Payments),
By Enterprise Size (Large Enterprises, Medium-sized Enterprises, Small-sized
Enterprises), By Payment Method (Bank Transfer, Cards, Others), By Industry
Vertical (Manufacturing, IT and Telecom, Metals and Mining, Energy and
Utilities, Others), By Region, Competition”, has evaluated the
future growth potential of global B2B Payments market and provides statistics
& information on market size, structure and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the global B2B Payments market.
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