Payables Supply Chain Finance Market Report 2025

The payables supply chain finance market size has grown strongly in recent years. It will grow from $528.55 billion in 2024 to $582.26 billion in 2025 at a compound annual growth rate (CAGR) of 10.2%. The growth during the historic period is driven by the increased use of cloud-based solutions, greater involvement of fintech companies and alternative lenders, heightened emphasis on supplier relationship management, accelerated digital transformation within procurement and finance functions, and an expanding reliance on supplier networks.

The payables supply chain finance market size is expected to see strong growth in the next few years. It will grow to $846.09 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period is expected to stem from wider adoption of digital financial platforms, a rising demand for working capital optimization, an increasing need for liquidity support among suppliers, a stronger focus on financial supply chain resilience, and broader acceptance of dynamic discounting models. Key trends anticipated during this period include innovations in blockchain technology, progress in cloud computing, technology-enabled automation of procure-to-pay processes, improvements in data analytics, and advancements in e-invoicing technologies.

The growth of the payables supply chain finance market is expected to be driven by the increasing adoption of digital solutions for financial transactions. These digital solutions refer to technology-based platforms and tools that facilitate secure, efficient, and seamless monetary transactions through digital channels. The expansion of such solutions is propelled by a rising consumer preference for real-time, convenient, and easily accessible financial services available online. Payables supply chain finance supports these digital financial transactions by streamlining invoice processing and enabling automated early payments, thereby enhancing cash flow efficiency for both buyers and suppliers and promoting transparency and financial agility throughout the supply chain. For example, according to the Consumer Financial Protection Bureau, consumer spending via Google Pay increased from $24.8 billion in 2021 to $65.2 billion in 2022, illustrating the growing impact of digital payment solutions on the market.

Key players in the payables supply chain finance market are increasingly focusing on innovative solutions that promote environmental, social, and governance (ESG) goals, such as ESG-linked working capital finance, to support sustainable supply chains and respond to the rising demand for responsible corporate practices. This financing approach links a company’s access to or cost of working capital with the achievement of specific ESG performance targets, encouraging sustainable and responsible business conduct throughout the supply chain. For instance, in July 2024, Deutsche Bank AG launched BASF’s first sustainability-linked payables finance program in Asia, designed to assist BASF’s suppliers by offering better financing rates if they meet certain sustainability performance criteria. This initiative aligns with BASF’s broader ESG objectives by motivating suppliers to adopt environmentally friendly practices while optimizing working capital management across the supply chain. Through integrating sustainability incentives into payables financing, Deutsche Bank seeks to foster positive environmental outcomes alongside long-term business efficiency.

In March 2024, the African Export-Import Bank, based in Egypt, partnered with Sterling Bank Limited, a Nigerian financial services company, to launch Afreximbank Tradelink. This partnership aims to provide payables supply chain finance solutions that facilitate early payments to suppliers, improve liquidity for businesses, and increase access to affordable financing in Nigeria through a digital trade platform.

Major players in the payables supply chain finance market are JPMorgan Chase & Co., Citibank N.A., Bank of America Corporation, Banco Santander S.A., HSBC Holdings plc., Wells Fargo & Company, Oracle Corporation, Deutsche Bank AG., Standard Chartered plc., FIS Global, Finastra, Infor Nexus, OpenText Business Network, ACI Worldwide Inc., Basware Corporation, Kyriba Corp., Tradeshift Holdings Inc., C2FO, SAP Taulia Inc., PrimeRevenue Inc., Orbian Management Limited, Credlix Technologies Private Limited.

North America was the largest region in the payables supply chain finance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in payables supply chain finance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the payables supply chain finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Payables supply chain finance is a buyer-driven financing solution that enables suppliers to obtain early payment on their invoices at a discounted rate, while buyers benefit from extended payment terms. This arrangement enhances working capital for buyers and guarantees timely cash flow for suppliers, typically facilitated by a financial institution or a technology platform.

The primary types of financing within payables supply chain finance include dynamic discounting, reverse factoring, invoice financing, purchase order financing, and supply chain financing platforms. Dynamic discounting is a supplier financing method allowing early invoice payment in exchange for a discount that varies depending on the payment timing. These financing options are provided by banks, non-bank financial institutions, fintech firms, investment funds, and peer-to-peer lending platforms, catering to businesses of all sizes - small (1-50 employees), medium (51-200 employees), and large (201+ employees). Technologically, these solutions are delivered through cloud-based, on-premises, or hybrid models, and support a diverse range of industries such as manufacturing, retail, healthcare, information technology, construction, food and beverage, and telecommunications.

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

The payables supply chain finance market includes revenues earned by entities through invoice discounting, payment term extensions, early payment programs, and digital platforms that facilitate buyer-supplier collaboration and transaction processing. 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.

This product will be delivered within 1-3 business days.