Description

According to the Market Statsville Group (MSG), the global B2B payments market size is USD 950.4 million in 2021 and estimated to reach USD 2,127.9 million by 2030, at a CAGR of 10.7% during the forecast period. Rapid digitalization & automation in the B2B payment system has accelerated its demand among business owners in networking & connecting with various suppliers, wholesalers, and retailers globally. Moreover, growing global trade and surge in cross-border transaction involves several suppliers, wholesalers, retailers, and businesses that act as the major driving factors of the global market. However, an increase in fraud in business payments and the discontinuation of several businesses due to the COVID-19 outbreak are anticipated to restrain the market growth. On the contrary, advancements in transparency across B2B payments and an increase in partnership among B2B payment players & FinTech giants are anticipated to provide lucrative opportunities for market growth.

B2B payment has been expanding tremendously in the market with advancements in technology that offer secured and reliable business transactions. Business owners are shifting toward a technology-based B2B payment system rather than using the traditional payment method. In addition, automation in the payment system has accelerated its demand among business owners, networking & connecting with various suppliers, wholesalers, and retailers globally. Automated clearing house (ACH), is a form of B2B payments that is faster and more efficient than the traditional methods. This type of transaction moves electronically from one entity to another using a routing number and bank accounts. Therefore, technological advancement in B2B payment propels the market growth during the forecast period.

Global B2B Payments Market Definition

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.

COVID-19 Impact on the Global B2B Payments Market

Implementation of lockdown across several sectors came into place with an unprecedented COVID-19 pandemic; businesses also had to undergo numerous changes in their operations. Many businesses have incurred losses & interruptions caused due to restrictions imposed by the government regarding the movement of goods, transportation, bans on import & export, travel restrictions, event cancellations, and others. Due to such irregularities in business operations, the B2B payment has been impacted considering low demands for goods and services, irregular supply chains, business closures, etc. In addition, B2B payments declined due to the limited number of transactions between businesses, considering restrictions imposed by the government, which resulted in a decline in B2B payments.

Therefore, the B2B payment market has been moderately impacted due to the global health crisis; however, businesses such as healthcare and others have largely contributed to the rise in the B2B payments, which eventually positively impacted the B2B payments market.

Global B2B Payments Market Dynamics

Drivers: Increase in the cross border trading

Demand for B2B payments continues to rise as companies are increasingly getting engaged in international trades & expanding their existing business operation. Moreover, the cross-border transaction involves several suppliers, wholesalers, retailers, and businesses that require B2B payments to deal with each other, thereby increasing B2B payments. Furthermore, several e-commerce platforms connect buyers with sellers around the world. Many big platforms such as Amazon, Alibaba, and others act as intermediaries, collecting payments from buyers and transferring the amount to sellers from different countries, thereby facilitating B2B payments. Hence, there is an increase in the partnership between big techs and B2B payment providers, thus facilitating cross-border trading. For instance, Visa has launched a new solution called Visa B2B Connect in 2019, a non-card platform based on distributed ledger technology, to facilitate cross-border B2B payments. Therefore, an increase in cross-border trading is a major factor boosting the growth of the B2B payments market.

Restraints: Fraud in business payment

A rise in fraudulent activities in the business payment leads to a decrease in the B2B payment, as businesses discontinue offering goods and services after encountering such fraud in the payment. Frauds, including non-payment of bills, credit card fraud, credit card not present, and point of sale frauds, are common methods used by fraud business owners to avoid making payments after acquiring the goods and services from suppliers. Therefore, the suppliers supply goods and services only to a few trustworthy businesses and avoid doing business with fraud business owners, thereby reducing the B2B payments from different businesses due to the fear of fraud. Furthermore, business owners hesitate in executing B2B payments considering the fraudulent activities.

Global B2B Payments Market Segmentation

The study categorizes the B2B payments market based on payment type, enterprise size, payment mode, and industry vertical at the regional and global levels.

By Payment Type Outlook (Sales/Revenue, USD Million, 2017-2030)

• Domestic Payments
• Cross-Border Payments

By Enterprise Size Outlook (Sales/Revenue, USD Million, 2017-2030)

• Large Enterprises
• Medium-Sized Enterprises
• Small-Sized Enterprises

By Payment Mode Outlook (Sales/Revenue, USD Million, 2017-2030)

• Traditional
• Digital

By Industry Vertical Outlook (Sales/Revenue, USD Million, 2017-2030)

• Manufacturing
• IT & Telecom
• Metals & Mining
• Energy & Utilities
• BFSI
• Others

By Region Outlook (Sales/Revenue, USD Million, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • Slovenia
  • Slovakia
  • the Netherlands
  • Belgium
  • Norway
  • Denmark
  • Czech Republic
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Vietnam
  • The Philippines
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

The domestic payments segment accounts for the largest market share, by payment type

Based on payment type, the B2B payment market is segmented into domestic payments and cross-border payments. In 2021, the domestic payments segment accounted for the largest market share of 75.1% in the global B2B payments market. The B2B payment technology offers several benefits, such as reduced payment transaction charges and improvement of the organization's sales to domestic business owners, which drives the growth of the market. In addition, the rise in the adoption of cash in advance payment technology such as credit cards for purchasing products from domestic business propels the market's growth in this segment.

Asia Pacific accounts for the highest CAGR during the forecast period

Based on the regions, the global B2B payments market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is projected to hold the highest CAGR of 11.7% in the global B2B payments market during the forecast period. The countries studied in the Asia-Pacific B2B payment market include China, India, Japan, South Korea, Australia, and the Rest of Asia-Pacific. An increase in the payment volume between the businesses, a rise in adoption of digital payment systems among the small-medium sized enterprises, and the availability of a huge number of payment acceptance banks for merchants foster the growth of the Asia-Pacific region.

After the Asia Pacific, North America is the fastest-growing region with a CAGR of 9.9% during the forecast period (2022-2030). The North America B2B payment market is analyzed across the U.S. and Canada. An increase in the adoption of virtual card accounts among the commercial line businesses in the U.S. is considered an important factor is boosting the growth of the B2B payment market in this region. Increased usage of digital payment technology among several industries such as manufacturing, retail, and healthcare fosters the market's growth in this region.

Key Market Players in the Global B2B Payments Market

The leading market players such as Bank of America Corporation, Mastercard, Visa Inc., and Stripe hold the majority of the market share. However, other players in the market are also coming up with new strategies and partnering, collaborating, and expanding their business, which is further anticipated to boost the market growth in the future.

In the global B2B payments market, major players are:

• American Express
• Mastercard
• PayPal Holdings, Inc.
• Visa Inc.
• Bank of America Corporation
• Capital One
• Payoneer Inc.
• Square, Inc.
• Stripe
• TransferWise Ltd.

Recent Developments

• In April 2021. Mastercard partnered with HSBC in UAE to help modernize MEA’s B2B payment ecosystem. This partnership helps companies simplify and optimize the payment method and get paid through a global open-loop network.
• In February 2021, Stripe partnered with Y-Combinator, one of the leading funding provider to launch a digital payment platform for B2B companies. Stripe’s digital payment technology allows a merchant to make payments with credit cards or debit cards.
• In October 2020, American Express partnered with Coupa's business-to-business (B2B) payments solution, Coupa Pay. This partnership offers the initial availability of American Express virtual Cards in the UK and Australia and simplifies outdated, complex, and inefficient payment processes for businesses worldwide.
• In February 2020, Xero, one of the leading accounting software companies, announced a partnership with Square, Inc. to improve the B2B payment platform.

Key Issues Addressed

• What is the market size by various segmentation of the B2B payments by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the B2B payments market?
• What are the key opportunities and trends for manufacturers involved in the B2B payments supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of B2B payments in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.