B2B Payments Market Outlook 2031
The global B2B Payments market size was valued at around USD 994.93 Billion in 2022 and is estimated to reach USD around 2380.77 Billion by 2031, expanding at a CAGR of around 10.18% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing adoption of digital modes of payment in B2B payments.
Business-to-Business (B2B) payments refer to a form of transactions conducted between businesses such as manufacturers, wholesalers, and retailers. B2B payments tend to occur in a supply chain, where one business purchases raw materials from another business to use in its manufacturing process. Paper checks, bank wire transfers, credit cards, and cash are common methods of B2B payments, which are usually preferred by companies, due to the large sum of amount paid in such transactions.
B2B payments are either one-time or recurring payments that are complex and require a long period of time to receive approval or settle. These traditional modes of payment, though popular among companies, face several problems such as cash or check fraud, long process periods, and others.
The COVID-19 pandemic has altered the global B2B payments market significantly. Enterprises and companies are adopting digital B2B payments rapidly, as it does not require payments to be handled physically and payments can be done remotely. Increasing usage of technology, growing number of small and medium-sized enterprises, and rising import and export of goods and services across the globe fueled the global B2B payments market.
B2B Payments Market Dynamics
Major Drivers
Increasing export & import of goods and services and expansion of trade across the globe are estimated to fuel the market during the forecast period. Growing number of small and medium-sized enterprises, which engage in large trades, are expected to drive the market. Increasing usage of technology in B2B payments boosts the market.
Existing Restraints
Lack of global standards for cross-border B2B payments is anticipated to hamper the growth of the market in the coming years. Increasing number of cyber-attacks on digital payment modes are estimated to hinder the growth of the market.
Emerging Opportunities
Increasing utilization of Automate Clearing House (ACH), a fast and efficient electronic fund transfer system, in B2B payments is expected to create lucrative opportunities for key market players. Growing employment of automation in B2B payment systems to form a network of various suppliers, retailers, and wholesalers offer growth opportunities to key market players.
Scope of B2B Payments Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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B2B Payments Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Payment Type (Domestic and Cross-border), Payment Mode (Digital and Traditional), Enterprise Size (Large Enterprises, Medium Enterprises, and Small Enterprises), and Industry Vertical (IT & Telecom, Manufacturing, Metals & Mining, BFSI, Energy & Utilities, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Mastercard, Inc.; PayPal Holdings, Inc.; Capital One Financial Corporation; The American Express Company; The Bank of America Corporation; Visa, Inc.; Pioneer, Inc.; Block, Inc.; Wise Payments Limited; Stripe, Inc.; JPMorgan Chase & co.; Citigroup, Inc.; and Paystand, Inc.
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B2B Payments Market Segment Insights
Payment Type Segment Analysis
Based on payment type, the market is bifurcated into domestic payment and cross-border payment. The cross-border segment is expected to drive the market during the forecast period, as it contributes to the rapid growth of global trade. Several financial institutions and payment systems develop cross-border payments to facilitate rapid financial transactions to aid in the expansion of the market.
Payment Mode Segment Analysis
On the basis of payment mode, the market is divided into digital payment mode and traditional payment mode. The traditional payment mode segment is projected to hold a large share of the market during the forecast period, as companies prefer to use traditional payment methods such as bank wire transfers, checks, cards, and others. Additionally, companies are slowly adopting digital payment methods such as mobile wallets, which are expected to expand the digital payment mode segment during the forecast period.
Enterprise Size Segment Analysis
Based on enterprise size, the market is segregated into large enterprises, medium enterprises, and small enterprises. The large enterprises segment is expected to dominate the market during the forecast period, as large enterprises are increasingly adopting B2B payment methods to enhance their market value. It surges sales of goods and services among businesses via online channels. Moreover, the small enterprises segment is anticipated to expand during the forecast period, due to rising cross-border transactions among small enterprises across the globe.
Industry Vertical Segment Analysis
On the basis of industry vertical, the market is divided into IT & telecom, manufacturing, metals & mining, BFSI, energy & utilities, and others. The Banking, Financial Services, and Insurance (BFSI) segment is estimated to expand at a significant CAGR during the forecast period, due to increasing demand for digital payment modes for domestic and cross-border transactions. Rapid digitization in financial institutions and banks is expected to fuel the market during the forecast period.
Regional Analysis
Based on region, the B2B payments market share is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is estimated to hold a large share of the market, due to the increasing adoption of online payment solutions among small and medium-sized businesses in emerging economies of countries such as India and China. Growing presence of key market players in Asia Pacific drives the market in the region.
Segments
The global B2B payments market has been segmented on the basis of
Payment Type
Payment Mode
Enterprise Size
- Large Enterprises
- Medium Enterprises
- Small Enterprises
Industry Vertical
- IT & Telecom
- Manufacturing
- Metals & Mining
- BFSI
- Energy & Utilities
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Mastercard, Inc.
- PayPal Holdings, Inc.
- Capital One Financial Corporation
- The American Express Company
- The Bank of America Corporation
- Visa, Inc.
- Pioneer, Inc.
- Block, Inc.
- Wise Payments Limited
- Stripe, Inc.
- JPMorgan Chase & co.
- Citigroup, Inc.
- Paystand, Inc.
- Others
Competitive Landscape
The global B2B payments market is a highly competitive market share with the presence of key players such as Mastercard, Inc.; PayPal Holdings, Inc.; Capital One Financial Corporation; The American Express Company; The Bank of America Corporation; Visa, Inc.; Pioneer, Inc.; Block, Inc.; Wise Payments Limited; Stripe, Inc.; JPMorgan Chase & co.; Citigroup, Inc.; and Paystand, Inc., who use strategies such as mergers, acquisitions, collaborations, partnerships, and product launches to strengthen their hold on the market. For example,
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In May 2022, Mastercard, Inc. and Galileo Financial Technologies collaborated to accelerate digital transformation and improve access to financial opportunities for underdeveloped countries in Latin America and the Caribbean.
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In April 2022, Mastercard, Inc. announced a collaboration with Microsoft to improve identity solutions to enhance the online shopping experience and tackle digital fraud problems.
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