The B2B Payments Transaction Market is estimated to be valued at US$ 1,287.51 Billion in 2023

A newly published report by Coherent Market Insights reveals a sustainable growth opportunity in the B2B payments transaction market. Coherent Market Insights’ analyst projected the B2B payments transaction market to be valued at US$ 1,287.51 Bn in 2023. It is expected to exhibit a CAGR of 9.7% over the forecast period 2024 -2031.

Rising digitalization among various industries. Business transactions in itself get digitalized, with this aspect bringing forth growth into B2B payments. Its advantages include fast processing, detailed records, and auto reconciliation.

It further aids business establishments to trace real-time expenditure and maintain healthy cash flows. Increasing usage of digital and contactless payment also fuels B2B payment gateways.

Key market trends include Trends such as increasing adoption of e-invoicing are driving this market. A growing number of businesses are digitally invoicing nowadays, and the introduction of e-invoicing further helps them standardize invoice handling and payment streams. E-invoicing enables faster payment and availability of real-time transaction data access. This market trend is facilitating the growth in the B2B payments transaction market.

Integration of AI and blockchain: Market leaders have started focusing on integration with some advanced technologies, like artificial intelligence and blockchain. They will bring forth an effective and efficient experience to B2B payments through advanced technologies such as artificial intelligence (AI) and blockchain. Blockchain offers transparent and secured inter-transferment between buyers and suppliers in real time. Next-generation integration is also anticipated to introduce growth avenues to the market players.

B2B Payments Transaction Market Opportunities: In 2023, the share of domestic payments in B2B transactions within the whole market of B2B payment transaction was above 65%. Domestic B2B payments refers to any business-to-business type of payment made within a nation’s territorial area, such as the supplier-to-the-distributor-to-the-retailer. The adoption of electronic payment modes like bank transfers, online payments and cards have improved the speed, transparency and cost efficiency of domestic B2B payments.

Cross border B2B payments represented 35% of the total market in 2023. This segment involves payments between businesses located in different countries. Compliance with regulations and complexities in foreign exchange continue to pose challenges in cross border payments. However, fintech innovations in remittances, adoption of blockchain and rise of payment gateways are facilitating growth in this segment.

 

Key Market Takeaways: The global B2B payments transaction market is anticipated to witness a CAGR of 9.7% during the forecast period 2024-2031. This is owing to the rise in digital commerce and integration of payment solutions by ERP systems.

On the basis of payment method, online payments segment is expected to dominate the market. This is owing to the convenience and security offered in online fund transfer.

By industry, the BFSI sector accounts for over 30% of total transactions. This is due to the financial nature of business.

Regionally, North America has a share of over 35% in the global market. This is attributed to advanced digital infrastructure and presence of global payment companies in the US and Canada.

Competitor Insight: Key players in the B2B payments transaction market include Mastercard Inc., FIS , Stripe, Inc. , Paystand, Inc., Flywire , Squareup Pte. Ltd, Edenred Payment Solutions Payoneer Inc. Earthport PLC, FLEETCOR Technologies, Inc., Intuit Inc., Nvoicepay, Inc., Optal Limited, Paytm Mobile Solutions Private Limited, PayPal Holdings, Inc.,

Recent Developments:  In September 2023, Netherlands-based payment service provider Sprinque entered the German and Spanish markets to broaden its cross-border B2B payment platform offerings and tap the European market. More information in full report

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