May 23, 2024

B2B Payments Transaction Market is Estimated to Witness High Growth Owing to Digital and Online Adoption

The B2B payments transaction market includes various payment methods utilized by businesses to make and receive both domestic and cross-border payments to other businesses, their suppliers, and vendors. Common methods include bank transfers, checks, buyer initiated payments such as card payments and digital wallets, supplier initiated collection solutions such as direct debits and recurring payments. The growing digitalization and adoption of online payment solutions are driving the demand for automated, expedited and cost-effective B2B payments globally. The transition from traditional methods such as checks to digital and online payments provides improved traceability, security and transparency to businesses.

The Global B2B Payments Transaction Market is estimated to be valued at US$ 3,021.25 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the B2B Payments Transaction market include Mastercard Inc., FIS, Stripe, Inc., Paystand, Inc., Flywire, Squareup Pte. Ltd, Edenred Payment Solutions, Payoneer Inc., American Express, Visa Inc., JPMorgan & Chase, Adyen N.V., Billtrust, Coupa Software Inc., Dwolla, Inc., Earthport PLC, FLEETCOR Technologies, Inc., Intuit Inc., Nvoicepay, Inc., Optal Limited, Paytm Mobile Solutions Private Limited, PayPal Holdings, Inc., TransferWise Ltd. (Now known as Wise), and Scoot and Ride.

The key opportunities in the B2B Payments Transaction Market Size lie in the developing economies exhibiting higher commercial activities and increasing internet penetration. Growing cross-border trade and business operations between countries also provides lucrative opportunities.

Advancements in payment technologies such as application programming interfaces, machine learning and artificial intelligence are enabling more seamless, automated and risk-based authentication of transactions. Blockchain technology also holds potential to optimize payment reconciliation and release trapped capital for businesses.

Market Drivers
The primary driver for the B2B payments transaction market is the growing need for busineses to digitize payment processes and replace outdated methods in order to gain efficiencies. Automating accounts payable and receivable through digital solutions helps reduce processing costs and delays significantly. As business digitization accelerates globally, demand for B2B digital payments is expected to rise markedly over the coming years.

Challenges in the B2B Payments Transaction Market:

The B2B Payments Transaction Market is facing challenges related to security, interoperability between systems of different businesses, regulatory compliance requirements, and complex payment processes. As transactions are happening between businesses directly, the sensitive financial data is more vulnerable to cyberattacks. The diverse payment systems and processes of different organizations also create issues regarding reconciliation and reporting. Complying with the dynamic regulatory environment surrounding international, cross-border payments add to the compliance burden. Manual processes involved in B2B payments also introduce inefficiencies and reconciliation problems.

SWOT Analysis

Strength: Technologies like blockchain enable more secure and transparent transactions. Standardization efforts are improving interoperability.

Weakness: Vulnerability of data to cyberattacks due lack of adoption of advanced security protocols by some businesses. High compliance costs.

Opportunity: Growing adoption of digital payment methods and real-time payment railways present an opportunity to improve efficiencies. Cross-border trade expansion will fuel transaction volumes.

Threats: Exposure to changing regulations especially for cross-border payments. Disruption from newer fintech entrants providing complete digital solutions.

Geographical regions:

North America holds the major share currently with the US accounting for the bulk of transactions volumes and values. Asia Pacific region is growing at one of the fastest pace led by countries like China, India with their rising exports and domestic B2B trades.

The fastest growing region for B2B Payments Transaction Market is Asia Pacific. With increasing digitalization of payments, expansion of e-commerce and high economic growth rates countries like India and China offer huge potentials for transaction volumes to surge. Cross-border trades within the region and with other regions also contribures to the momentum. Standardization initiatives are also helping interoperability.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it