B2B payment Market By Payment type (Domestic Payments, Cross-Border Payments) By Payment Mode (Traditional, Digital) By Enterprise Size (Large Enterprise, Small and Mediumsized Enterprises) By Industry Verticals (BSFI, Manufacturing, IT and Telecom, Metals and Mining Energy and Utilities, Others)-Growth, Size, Forcast 2016-2028
What part does e-commerce play in expanding the B2B payment market?
The market was favorably affected by the COVID-19 epidemic, which might be ascribed to consumers' increasing preference for online shopping and electronic payments. According to numerous surveys, e-commerce has increased dramatically. Furthermore, the industry is anticipated to be significantly expanded by the expanding alliances among e-commerce businesses. For instance, to provide a real-time payment system using the UPI transaction facility, Yes Bank worked with Amazon Pay and Amazon Web Services. Additionally, the need for B2B payment systems is projected to increase in the near future due to technology improvements and the expanding internet penetration in emerging countries.
What is the Market Size of B2B Payments in terms of value?
The global B2B Payments Market is projected to increase at a significant CAGR of 10.30% in the coming years. In 2021, the global B2B Payments market was valued at USD 921.9 Billion and was projected to reach a value of USD 1660.110 billion by 2028. The demand for B2B Payments is projected to increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 738.210 billion during the forecast period between 2022 and 2028.
How does the Increasing Development in the B2B Payment Propel the Market Growth?
In the projected years, the market is anticipated to be significantly boosted by technological advancements in mobile-based payment apps and rising internet penetration. In addition, E-commerce services are expected to increase substantially due to the high acceptance rate of different money transfer methods, such as mobile wallets and net banking, and the growing digitization.
Additionally, the governments of numerous nations are launching projects to promote internet adoption in underserved regions.
Interesting Facts about B2B Payments Industry
The market's growth is attributable to developing nations like China, Japan, and India. The governments of these nations have implemented several efforts to increase the effectiveness of payment gateway systems in the area.
The market will expand over the projected period because of growing international trade and an increase in cross-border transactions involving numerous suppliers, wholesalers, retailers, and businesses.
The growing demand for B2B payments among large businesses is also being impacted positively by raising their market value and online sales of goods and services.
Key market participants are also collaborating and forming alliances to provide more comprehensive B2B payment solutions, which is expected to boost their total profitability.
In addition, the growing use of B2B payment systems automation for networking and interacting with different suppliers, distributors, and retailers is providing industry investors with lucrative growth potential.
Who are the Top leading players/companies in the B2B Payments market in terms of value?
The key players in the global B2B Payments market in terms of value include Bank of America Corporation, American Express Company, Citigroup Inc., Capital One, Mastercard Inc., PayPal Holdings Inc., Paystand Inc., Visa Inc., JPMorgan Chase & Co., Payoneer Inc., Stripe Inc., and Wise Payments Limited.
Who are the Top 10 Countries in the B2B Payments Market?
The major countries are Canada, Germany, the United States, France, the United Kingdom, Italy, Spain, Russia, China, Japan, India, and South Korea. The B2B Payments market in the United States is anticipated to reach USD million in 2021 and expand at a CAGR of about during the research period. By 2028, China will account for a large market share in worldwide B2B Payments market, worth USD million. In terms of the Europe B2B Payments market, Germany is anticipated to reach USD million by 2028, growing at a CAGR. In addition, other significant markets in APAC, such as Japan and South Korea, are expected to develop at rates of and respectively during the next five years.
Which is the best-fit enterprise size in the B2B payments Market?
The large enterprise category dominated the B2B Payments market in 2021 and is anticipated to continue to do so throughout the forecast period. As a result, large companies use B2B Payments more frequently to boost their market worth and business-to-business sales via online platforms.
Nevertheless, the small-sized enterprise segment is anticipated to expand quickly throughout the projected period due to a growth in cross-border transactions among small-sized businesses globally.
What are the Major Driving Factors for B2B Payments Market?
The rapid expansion of worldwide trade due to the increasing import and export of products and services is the primary driver for the development the global B2B Payments market. Also noteworthy are the B2B payment system's quick digitalization and automation, improvements in transparency throughout B2B Payments, and the rising collaboration between B2B payment companies and FinTech behemoths. The growing use of technology in B2B Payments, the rapid growth of regional SMEs, and the involvement of medium-sized businesses in significant transactions are some factors that will support the market's expansion in the future. In addition, the need for B2B payments will likely see new growth prospects due to rising company demand for digitalized payments and multiple government initiatives to encourage B2B transactions.
What are the Major Restraints for B2B Payments Market?
Additional factors driving the market's expansion in the coming years include the growing trend of real-time payments, rising cloud adoption, rising smartphone penetration, expanding B2B e-commerce sector, advancements in business process automation, rising urbanization, and increasing cross-border payments. In addition, the market will grow over the projected period because of expanding international trade and an increase in cross-border transactions involving numerous suppliers, wholesalers, retailers, and companies. However, several problems, including business losses, the cessation of business activities, and an increase in business payment fraud cases, limit the expansion of the B2B payments sector.
Moreover, the COVID-19 pandemic has caused businesses to suffer due to a downturn in demand for goods and services and a shift in consumer preferences toward online payments, resulting in a decrease in B2B payments. Additionally, essential market restrictions include limited trade in products and services and the closure of enterprises in several industrial verticals.
Which payment mode dominated the market in the forecast period?
Most businesses choose traditional payment methods, including bank wire transfers, debit cards, and checks for B2B transactions. The main benefit of a firm paying traditionally is that there are no yearly fees, unlike with a line of credit, and transaction costs are minimal. In certain circumstances, vendors could take cash. Credit cards and terms and mobile wallets are B2B businesses' top choices regarding B2B e-commerce. Companies are now more receptive to alternate payment options than they were in the past. The digital payment system is expected to expand quickly in the upcoming years due to rapid technical advancement, increased data security, and increased theft prevention.
Which Region Ruled the Global B2B Payments Market?
Asia-Pacific was the region that dominated the B2B payments market in 2020. This is linked to an increase in the use of virtual card accounts by commercial line businesses in Asia-developing Pacific countries. In addition, the expansion of the B2B payments industry in this region is also fueled by companies' increasing use of advanced payment systems and the development of significant market players.
Additionally, the region's B2B Payments market would reach new heights in the ensuing years due to the use of sophisticated payment systems and the presence of sizable competitors in the area. Additionally, the region's adoption of B2B Payments transactions will be fueled by the rise in financial technology use, digital transformation trends, and strategic alliances.
Segmentation of Global B2B Payments Market-
Global B2B Payments Market – By Payment type
Domestic Payments
Cross-Border Payments
Global B2B Payments Market – By Payment Mode
Traditional
Digital
Global B2B Payments Market – By Enterprise Size
Large Enterprise
Small and Medium-sized Enterprises
Global B2B Payments Market – By Industry Verticals
BSFI
Manufacturing
IT and Telecom
Metals and Mining
Energy and Utilities
Others
Frequently asked questions about the global B2B Payments industry
The expansion of the B2B Payments industry is aided by the rise in demand for quicker and more traditional payment processing systems across various sectors and the escalating rivalry among banks and other financial institutions.
The B2B Payments Market is divided into enterprise size, payment type, industry vertical, payment mode, and region.
Product portfolio expansion, mergers and acquisitions, agreements, regional expansion, and partnerships are among the primary growth tactics used by B2B Payments industry participants.
By 2028, the Asia-Pacific region will control the market.
The worldwide B2B payments market may be classified into conventional and digital payment methods based on the transaction, with traditional payment methods clearly dominating the industry.
