The B2B Payments Transaction market size was valued at US$ 868.02 million in 2020 and expected to hit US$ 70 billion by 2030 with a CAGR of 10.7% from 2021 to 2030.
Growth of the global B2B payments transaction market is mainly driven by rapid expansion of trades across the globe due to an increased import and export of goods & services. Businesses are actively looking for dealing with various countries for their expansion, which boosts the cross-border business transactions. In addition to this, volume of total B2B payments has seen significant growth in past few years. For instance, it has been assessed that the volume totals of B2B payments is approximately $120 trillion per year worldwide. In addition to this, growth in number of online payment activities along with the government initiatives in developing countries for cashless economy boosts growth of the B2B payments transaction market.
Moreover, rapid trend among the domestic small and medium sized companies to engage in massive trades act as one of the key driving forces for growth of the B2B payments market.
Furthermore, integration of automation technology in B2B payment transaction is anticipated to create lucrative growth opportunities for the market growth. For instance, the paper checks are being completely replaced by electronic transfers as well as more advanced digital B2B payment solutions are being adopted which are more effective in terms of financial services.
Scope of the B2B Payments Transaction Market
|Market Size||USD 70 Billion by 2030|
|Growth Rate||CAGR of 10.7% from 2021 to 2030|
|Historic Data||2017 to 2020|
|Forecast Period||2021 to 2030|
|Segments Covered||Payment Type, Enterprise Size, Payment Mode, Industry Vertical|
|Regional Scope||North America, Europe, Asia Pacific, Middle East & Africa, South America|
|Companies Mentioned||American Express, Bank of America Corporation, Capital One, Mastercard, Citigroup Inc., TransferWise Ltd., Payoneer Inc., PayPal Holdings Inc., Square Inc., and Visa Inc.|
Payment Type Insights
By Payment Type, in 2020, Domestic Payments dominated the market with around 64.2% share in terms of revenue of the total market. Growth of this segment is mainly attributed to upsurge in number of small and medium sized enterprises in the countries such as India and China that demand for payment solutions. Such businesses are rapidly using payment solutions such as Fundbox Pay, PayPal, Square, QuickBooks, and Plastic.
However, cross-border payments segment is anticipated to generate high revenue during years to come. In this type of transactions, the payee and the transaction recipient are based in different countries. Hence, rising import and export of goods & services are fuels growth of this segment.
Enterprise Size Insights
By enterprise size, in 2020, large enterprises dominated the market with around 54.2% share in terms of revenue of the total market. Growth of this segment is mainly attributed to rising B2B payments transactions among the large manufacturer and wholesaler. For instance, Samsung Electronics is one of largest suppliers to the Apple Inc. for the production of the iPhone. However, Apple Inc. holds B2B relationships with firms such as Panasonic, Intel, and semiconductor producer Micron Technology.
However, small and medium sized enterprises segment is expected to witness highest growth rate during the forecast period.
Payment Mode Insights
By Payment Mode, in 2020, traditional segment dominated the market with around 65.7% share in terms of revenue of the total market. This is on account of the current preference by large companies to the traditional payments such as bank wire transfers. For instance, as per the recent studies, when it comes to B2B E-Commerce, credit card was the first choice of B2B enterprises in 2020, followed by mobile wallets.
However, the digital payment mode segment is expected to witness highest growth rate during the forecast period. Growth of this segment is mainly attributed to an ability of digital payment to free up time, money, and energy to grow and scale the business.
North America dominated the B2B Payments Transaction market and accounted for the largest revenue share of 41.2% in 2020. Growth of the market in this region is mainly driven by availability of advanced infrastructure that helps facilitating the online payment. In addition to this, the high spending by U.S. And Canada government on securing the transaction network, coupled with an availability of standard rules and regulations pertaining to online payment is further anticipated to encourage growth of the market in this region.
On the other hand, Asia Pacific is projected to witness the fastest growth rate throughout the forecast period. Ongoing proliferation of business-to-business eCommerce market as well as surge in adoption of financial technology in the region primarily drives growth of the B2B Payments Transaction market. In addition to this, the region has witnessed significant increase in penetration of smart phone and internet, along with the high spending capacity of customers. This factor has considerably pushed demand for B2B payment transaction solutions in the country.
The COVID-19 pandemic has affected every segment of society, including individuals and businesses. However, amidst the COVID-19 pandemic crisis, various governments and regulatory authorities have mandated both public and private enterprises to embrace new practices of teleworking and maintaining social distance. In addition to this, the governments of all the countries have took precautions that have led to the temporary shutdowns around the globe. Business has faced significant financial losses amidst the implementation of lockdown as the production across the various industries was halted. In addition to this, several governments have imposed ban on exports as well as import during the pandemic. Such factors have hampered growth of the global market during the pandemic.
However, growth of the market is anticipated to witness acceleration in the year 2021 owing to the need for B2B players to adopt digital payments.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved payment solutions to meet payment demands among the businesses.
Furthermore, the market players are making efforts to create competitive technology solutions and to meet their clients’ international business needs. For instance, in November 2019, Citi, an American multinational investment bank and financial services corporation launched a cross-border platform to help its multinational clients manage the complexities in collecting cross border business-to-business payments, by digitization of the transaction process.
Some of the prominent players in the B2B payments transaction market include:
Segments Covered in the Report
By Payment Type
By Enterprise Size
By Payment Mode
By Industry Vertical
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