by It involves the transfer of funds between corporate entities for the procurement of goods and services. Traditional B2B payments were carried out through offline methods like checks, wire transfers, cash and account payables. However, the market is now transitioning towards digital and online payment methods like credit transfers, direct debits, commercial cards andvirtual accounts to enable faster, more convenient and cost effective transactions. The global B2B payments transaction market allows companies to improve cash flows, automate payment processing and gain enhanced visibility into corporate spending through digitization of transaction workflows.
The Global B2B Payments Transaction Market is estimated to be valued at US$ 1,576.61 Bn in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024 to 2031.
Key players operating in the B2B Payments Transaction market are 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.
Key Takeaways
Key players: The key players in the B2B Payments Transaction Market Size are focusing on strategic partnerships and product innovations to integrate digital payment capabilities for businesses. For instance, Mastercard partnered with Coupa Software to enable B2B supplier payments on the Coupa Business Spend Management platform.
Growing demand: Digital payment methods are gaining immense popularity among businesses as they provide benefits like automatic bank account reconciliation, streamlined approval workflows and data-driven spend management. This is fueling the growth of B2B payments transaction market.
Global expansion: Major players in the market are expanding their digital payment offerings and merchant network across regions to tap the growth opportunities in developing economies. For example, PayPal launched cross-border B2B payment solutions in India and other Asian markets.
Market Key Trends
Real-time payments is emerging as a key trend in the B2B payments transaction market. It refers to electronic transactions that can be processed instantly 24/7, 365 days a year. Real-time payments enable businesses to have faster access to funds, improved cash flows and flexibility to pay suppliers in the currency of their choice. They are gaining popularity due to advantages like improved operational efficiency, reduced costs and enhanced control over cash cycles. This trend is expected to significantly impact the future of B2B payments processing over the forecast period.
Porter’s Analysis
Threat of new entrants: The B2B payments transaction market already has strong and well established players. The market requires high investments and technological expertise which acts as barriers for new entrants.
Bargaining power of buyers: There is a large number of buyers in this market with varying needs. This gives buyers higher bargaining power to negotiate better deals and payment solutions.
Bargaining power of suppliers: As the market comprises of payment processing networks, financial institutions and fintech companies, the bargaining power of a single supplier is relatively low due to presence of many alternatives.
Threat of new substitutes: With continuous innovations, new payment methods are emerging as substitutes at a fast pace like digital wallets, cryptocurrency etc. This presents a medium threat of substitution.
Competitive rivalry: Being a highly competitive market with presence of global as well as local players, the rivalry is very intense. Companies focus on product differentiation, customer experience and strategic partnerships to gain competitive advantage.
Geographical regions: North America holds the largest share of around 35% of the total B2B payments transaction market value owing to strong digital payment infrastructure and adoption rate among businesses.
The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period due to rising internet and smartphone penetration, growing e-commerce industry and initiatives by governments to promote digital transactions. Countries like China and India are major contributors to the growth in this region.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
