Countries covered: Australia, Canada, China, Germany, India, Italy, Japan, Russia, UK, USA.
Publication Date: 20/09/2022
- What are the latest trends that are changing the landscape of the B2B payments market?
- What is the forecasted transaction value of B2B payments in 2030?
- What are the main digital solutions that are offered to corporate customers by financial institutions?
- What are the B2B payment options that companies plan to expand in the next 12 months?
- What is the estimated B2B payment value for the U.S. market in the year 2022?
B2B payment market is forecasted to see a modest CAGR between 2020 to 2030: new yStats.com report.
The B2B payment market continues to grow, with traditional payment methods still leading
In light of the increasing use of digital channels, accelerated by the pandemic, B2B payments revenue is forecasted to witness a single-digit CAGR between 2020 and 2030, as stated in the new yStats.com report. B2B payments are also seeing a significant growth within the cross-border payment market, with the forecasted values reaching a figure in the trillions of euros by 2026. Moreover, payment systems are expected to be one of the top B2B E-Commerce technology investment areas in the year 2022. In terms of the most demanded payment options, most of the B2B buyers globally were in favor of credit cards, followed by checks, and purchase orders. Although there has been a growing interest towards more digitalized and innovative B2B payment methods, for more than one-third businesses checks remained a popular B2B payment method in countries such as the U.S, as spelled out in the new yStats.com report. Although the B2B payment share of cash and check in the U.S. has declined slightly as more modern payment methods are adopted, the value of the traditional payments is still higher than the innovative forms.
Technology trends such as AI, block chain, and virtual cards are transforming the B2B payment ecosystem
With emerging trends such as AI, block chain, automation, and others, the expectations of B2B customers are also changing. Corporate buyer are now looking for value-added solutions such as data transparency, cash pooling, corporate-to-bank connectivity via bank portals as well as streamlined processes to open a bank account, as mentioned in the new yStats.com publication. At the same time, B2B sellers are taking initiatives to embrace automation in their accounting tasks, with a majority of B2B respondents planning to increase the use of technology to drive their accounting operations as of 2021. Despite these steps being taken towards modernizing the B2B payments market, B2B firms still experience challenges when it comes to paying vendors and receiving payments from them. Invoice reconciliation, working capital management, slow underwriting, and inability to offer supplier portals were named as major obstacles faced by corporates while making payments to their suppliers in 2021.