According to a new report published by Allied Market Research, titled, “B2B Payments Market," The B2B payments market was valued at $125432.00 billion in 2021, and is estimated to reach $313947.8 billion by 2031, growing at a CAGR of 9.9% from 2022 to 2031.
The B2B payments market is driven by factors such as the ongoing trend of digitalization & automation in the B2B payment system has accelerated its demand among business owners in networking & connecting with various suppliers, wholesalers, and retailers. Furthermore, growth of global trade, strategies to expand the business sector, and surge in cross-border transactions drive the growth of the B2B payments market. However, increase in fraud in business payment and discontinuations of numerous businesses due to the outbreak of the global COVID-19 pandemic, along with the lack of trained IT staff restrict the growth of the B2B payments market. On the contrary, the advancements in way of digitalization and automation to bring transparency across B2B payments coupled with increase in partnership among B2B payment players & FinTech giants is expected to offer remunerative opportunities for expansion during the B2B payments market forecast.
Depending on organization size, the large enterprise segment holds the largest B2B payments market share owing to the rise in preference for cloud technology compared to on-premise models across the large enterprises. Furthermore, increase in number of money transactions and rise in need for making early bill payments in the organization drive the growth of the B2B payment market. However, the medium-sized enterprises in the B2B payments market trends is analyzed to witness the fastest growth, owing to digital innovations within the middle-sized enterprises, with evolving marketplace demand and changing market infrastructure.
Depending upon region analysis, the B2B payments market share was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the early adoption of the emerging technology such as artificial intelligence (AI), Internet of Things (IoT) and others in varied industries is positively impacting the growth of B2B payments industry. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to a rise in focus on reducing dependence on conventional B2B payment solutions and ensuring long-term sustainability in corporate networking is anticipated to drive the B2B payments market size.
The COVID-19 pandemic is expected to positively impact the overall economy in the B2B payments industry, owing to, the proliferation of contactless B2B processing systems being widely available and significantly used during to the imposition of strict lockdown by government authorities. Thus, several vendors have reported an increment in their profit margin during the second quarter of 2020. However, the pandemic increasingly affects consumer preference and reduces spending for on-premises servers, while the impact of COVID-19 on Infrastructure as a service (IaaS) servers will be minimal, which supports the market growth in the wake of the pandemic. Moreover, payment technology companies are incorporating advanced and innovative solutions to mitigate the effects caused by the pandemic on the demand for B2B payments. For instance, in November 2020, Visa, in strategic partnership with Conferma Pay, launched a Visa Commercial Pay. This new suite of m intended to improve cash flow for businesses and reduce outdated manual processes. These factors will normalize the situation for paving the demand for B2B payments, which, in turn, is contributing to the B2B payments market growth.
Key Findings of the Study
• By industry vertical, the manufacturing segment accounted for the largest B2B payments market share in 2021.
• By region, North America generated highest revenue in 2021.
• By payment type, the domestic payment segment generated the highest revenue in 2021.
The key players that operate in the B2B payments market analysis are American Express, JPMorgan & Chase Co., Mastercard, Payoneer Inc., PayPal Holdings, Inc., Paystand, Inc., Square, Inc., Stripe, TransferWise Ltd., and Visa Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the B2B payments industry.