Global B2B Payments Market Growth, Trends And Forecast

(MENAFN- Straits Research) Business-to-business (B2B) payment facilitates safer transactions for merchants that require routine, periodic transactions and provides various functions to end-users such as receivable accounts, accounts payable, payroll, and Acquisition departments. It involves one-time or recurring transactions depending on the contractual agreement made between the buyer and supplier. As B2B payment processing requires more time to approve and settle the transaction, B2B payments are more complex than business-to-consumer or B2C payments.
Rapid digitalization and automation in the B2B payment system have accelerated its demand among business owners in networking and connecting with suppliers, wholesalers, and retailers globally. Moreover, growing global trade and a surge in cross-border transactions involve several suppliers, wholesalers, retailers, and businesses that act as the major driving factors of the global market.
Market Dynamics
Growth and Expansion of Businesses Propel the Global B2B Payments Market
The growth of a business depends on the quality of goods and services provided by the firm. Therefore, companies need to have a strong relationship with the suppliers of goods and services that the firm sells to grow and compete in the market. Maintaining a strong relationship with the supplier means having a better cash flow among the business parties, including wholesalers, retailers, and supply chain managers. Companies are continuously maintaining a stable B2B payment channel to get a better and faster supply of goods and services. Furthermore, expansion in business means dealing with new supply chains for getting different types of goods and services for further selling to customers. Hence, increased development of businesses accelerates the demand for B2B payments which drives the market growth.
Digitalization of the Payment System Creates New Opportunities for the Global B2B Payments Market
Digital B2B payments are overtaking traditional paper checks and cash payment processes, as business owners want real-time updates of the payment transactions. Businesses are demanding from their marketplaces and third-party providers to offer digital systems and payment options. Furthermore, digitalization reduces trade barriers and payment frictions and makes B2B payment possible for paying vendors globally. In addition, digitalization provides transparency in terms of transactions among businesses and reduces the risk associated with B2B payments.
Moreover, unlike the traditional payment methods, digital payments have a low dependency on the working hours of a specific institution or bank, which further benefits buyers with flexible operating hours for receiving payments. Therefore, these factors offer lucrative opportunities for future growth of the B2B payment market.
Regional Insights
Asia-Pacific is the highest contributor
to the market and is estimated to grow at a CAGR of 11.9% during the forecast period. Several financial technology companies across China, Japan, and India have introduced advanced payment technology to businesses. For instance, in April 2020, Harbour & Hills, one of the leading B2B cross-border payment providers in China, launched a B2B payments gateway that improves the business payment transaction process of corporate sectors, which drives the market's growth in this region. In addition, cheques, bank transfers, demand drafts, and third-party gateways are leading traditional business payment methods widely accepted among businesses across the Asia-Pacific. This is considered an essential factor in boosting the market's growth in this region.
Europe is the second-largest region and is projected to reach USD 640 billion, growing at a CAGR of 9.4% during the forecast period. An increase in adoption of instant payment technology among the business, improvements in commercial cash management systems, and a rise in usage of digital banking services in the corporate sector are some of the crucial factors that boost the adoption of B2B payment technology among the business owners.
North America is the third largest region. Most of the leading payment solution companies across the globe have opened new business offices in the US to offer comprehensive payment services across small-medium enterprises. For instance, in February 2021, Eedenbull, a leading commercial payment card provider, started its new startup in the US. Moreover, it offers commercial payment technology and a commercial payments-as-a-service (CPaaS) portfolio to the banks in North America. Eedenbull provides commercial B2B payment technology to small-sized corporate customers. This is essential in boosting this region's B2B payment market.
Key Highlights

Based on type, the global B2B payments market is segmented into Domestic and Cross-Border Payments. The Domestic Payments segment is the highest contributor to the market and is estimated to grow at a CAGR of 10.2% during the forecast period.
Based on payment mode, the global B2B payments market is segmented into Traditional and Digital. The Conventional mode of payment is the highest contributor to the market and is estimated to grow at a CAGR of 8.2% during the forecast period.
Based on enterprise size, the global B2B payments market is divided into Large, Medium-Sized, and Small-Sized Enterprises. Large Enterprises are the highest contributor to the market and are estimated to grow at a CAGR of 8.8% during the forecast period.
Based on industry vertical, the global B2B payments market is segmented into Manufacturing, IT & Telecom, Metals & Mining, Energy & Utilities, BFSI, and Others. The Manufacturing industry is the highest contributor to the market and is estimated to grow at a CAGR of 9.1% during the forecast period.
Based on regions, the global B2B payments market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is the highest shareholder and is estimated to grow at a CAGR of 11.9% during the forecast period.

Competitive Players
The key players in the global B2B payments market are American Express, Bank of America Corporation, Capital One, Mastercard, Payoneer Inc., PayPal Holdings, Inc., Square, Inc., Stripe, TransferWise Ltd., and Visa Inc.
Market News

In June 2022, PayPal Holdings Inc. announced it is expanding its suite of credit offerings to include a new business credit card better to meet the everyday financing needs of small business owners. The PayPal Business Cashback Mastercard, issued by WebBank and powered by the Mastercard network, is the first business credit card offered through PayPal. The card has no annual fee and rewards cardholders with 2% cashback on all purchases with no rewards earning caps or expiration, making it among the highest cash back rewards value available.
In June 2022, The newest buy-now, a pay-later product from WebBank, PayPal Pay Monthly1, was unveiled by PayPal Holdings, Inc. It allows American consumers to spread payments out over more extended periods. Customers will now have access to a new PayPal product through Pay Monthly, which enables them more flexibility and payment options for the goods they want and need.

Global B2B Payments Market: Segmentation
By Payment Type

Domestic Payments
Cross-Border Payments

By Payment Mode

Traditional
Digital


By Enterprise Size

Large Enterprises
Medium-sized Enterprises
Small-sized Enterprises

By Industry Vertical

Manufacturing
IT & Telecom
Metals & Mining
Energy & utilities
BFSI

By Regions

North America
Europe

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