B2B Payments Global Market Report 2024

The b2b payments market size has grown strongly in recent years. It will grow from $1134.94 billion in 2023 to $1239.16 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth observed in the historical period can be attributed to globalization and cross-border transactions, the demand for faster and secure transactions, regulatory changes and compliance, the automation of financial processes, and the emergence of FinTech solutions.

The b2b payments market size is expected to see strong growth in the next few years. It will grow to $1794.55 billion in 2028 at a compound annual growth rate (CAGR) of 9.7%. Projected growth is driven by continued global trade, a focus on working capital optimization, the rise of subscription-based services, integration with ERP systems, and enhanced data security measures. Key trends include customization of payment solutions, a shift towards contactless and mobile payments, enhanced collaboration platforms, and integration of payment analytics for decision-making.

The B2B payments market is anticipated to experience growth driven by the expansion of global trade. Global trade involves the exchange of goods and services between entities, either within countries or internationally, with the primary objective of generating profit. B2B payments play a crucial role in facilitating swift currency exchange for goods and services, especially in the context of international trade deals. In February 2022, the United Nations Conference on Trade and Development reported a 25% increase in global trade value, reaching $28.5 trillion in 2021 compared to the previous year. Additionally, the World Trade Organization forecasts a 3.5% rise in global merchandise trade volumes in 2022. This surge in global trade activity is contributing to the growing demand for B2B payments solutions.

The B2B payments market is poised for growth, propelled by the increasing prominence of the e-commerce industry. E-commerce, characterized by the online buying and selling of goods and services, has become a significant platform for business-to-business (B2B) transactions. B2B payments within the e-commerce landscape play a vital role in facilitating secure and efficient financial transactions between businesses. This digital environment ensures streamlined processes, fosters trust, and enables seamless exchanges of goods and services. In the third quarter of 2023, the U.S. Census Bureau reported a notable increase in retail e-commerce sales, reaching an estimated $271.7 billion, reflecting a 7.8% rise compared to the same quarter in 2022. E-commerce sales constituted 14.9% of total sales during this period, emphasizing the substantial impact of the e-commerce industry on B2B payments market growth.

Product innovation stands out as a prominent trend in the B2B payments market, with major companies actively engaging in the development of cutting-edge technological solutions to enhance their market positions. An illustrative example of this trend is the introduction of "Amex Business Link" by American Express in December 2022. This digital B2B payment ecosystem serves as a comprehensive platform for network issuing and acquiring participants. Distinguished by its capacity to seamlessly connect with customer relationship management (CRM) and enterprise resource planning (ERP) systems accepting APIs, Amex Business Link features a specialized architecture incorporating robust reporting and reconciliation functionalities. This innovative solution supports both domestic and international transactions, accepting diverse payment methods, including card and non-card payments. Notably, it facilitates convenient payments for entities of varying sizes, allowing buyers and suppliers to access dynamic data for automatic reconciliation and gain insights into sales and purchases. The launch of such advanced products reflects a commitment to driving efficiency and flexibility within the B2B payments landscape.

Major players in the B2B payments market are intensifying their efforts to introduce innovative solutions, emphasizing the importance of a seamless payment experience. One notable example is the launch of "Collections Assist" by Alternative Payments in December 2023. This innovative product is tailored to transform accounts receivable collections for service companies. A standout feature is its capability to streamline the process of sending overdue invoices to collections, requiring just two clicks. This time-saving and efficiency-enhancing platform also facilitates a seamless payment experience for businesses and their customers through Alternative Payments' B2B checkout. This checkout solution incorporates the branding and design elements of the respective company, contributing to a user-friendly and cohesive payment process. The introduction of such solutions underscores a strategic focus on providing businesses with tools that enhance operational efficiency and deliver a smooth payment experience, thereby gaining a competitive advantage in the dynamic B2B payments market.

In December 2022, Visa Inc., the US-based financial services corporation specializing in electronic funds transfers through credit cards, debit cards, and prepaid cards, successfully acquired The Currency Cloud Limited for an undisclosed sum. This strategic acquisition aims to harness the combined resources of Visa and Currency Cloud, enhancing transparency, flexibility, and control for businesses and consumers engaging in international payments across multiple currencies. The integration is anticipated to bolster Visa's existing foreign exchange capabilities, further solidifying its position in facilitating seamless cross-border payments. The Currency Cloud Limited, headquartered in the UK, operates as a platform providing B2B payment solutions.

Major companies operating in the b2b payments market report are JPMorgan Chase & Co., Bank of America Corporation, Citigroup Inc., American Express Company, Capital One Financial Corporation, Visa Inc., PayPal Holdings Inc., Mastercard Inc., Fiserv Inc., Block Inc., Square Inc., Fidelity National Information Services Inc., Stripe Inc., Global Payments Inc., Ant Group Co., Worldpay Inc., Fleetcor Technologies Inc., Comdata Inc., WEX Inc., ACI Worldwide Inc., Adyen N.V., Bill.com Inc., TransferWise Ltd., Coupa Software Inc., Wise Payments Limited, Payoneer Global Inc., Bottomline Technologies Inc., Flywire Corporation, Paystand Inc., AvidXchange Inc., OnDeck Capital Inc., Divvy Inc., Tipalti Inc., Airwallex, WePay Inc., Billtrust Holdings Inc.

Asia-Pacific was the largest region in the B2B payments market in 2023. The regions covered in the b2b payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the b2b payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories for B2B payments encompass domestic payments and cross-border payments. Domestic payments entail transactions conducted within a country, where the client's credit or debit card is issued by a bank operating within the same country as the merchant account. Major payment methods include bank transfers, cards, and other modes utilized by businesses of varying sizes - large enterprises, medium-sized enterprises, and small-sized enterprises - operating across diverse sectors such as manufacturing, IT and telecom, metals and mining, energy and utilities, BFSI, government sectors, and other industries.

The B2B payments market research report is one of a series of new reports that provides B2B payments market statistics, including B2B payments industry global market size, regional shares, competitors with a B2B payments market share, detailed B2B payments market segments, market trends and opportunities, and any further data you may need to thrive in the B2B payments industry. This B2B payments market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The B2B payments market includes revenues earned by entities by providing transaction processing services such as payment gateways, cash payments, payment security, bookkeeping & taxes, and record cash flow. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.