June 17, 2024
B2B Payments Transaction Market

The Rise of Digital B2B Payments Transaction market in Supporting Commerce Globally

Key products in this market include cross-border B2B payments, domestic B2B payments, cross-border B2B collections. Digital payment methods have streamlined the transaction process, offering benefits like transparency, security and flexibility compared to traditional methods like checks. Features like tracking payments, integrations with accounting software and automated reconciliation are driving increased adoption. The market growth can also be attributed to shift towards online shopping and e-commerce.

The Global B2B Payments Transaction Market is estimated to be valued at US$ 1,576.61 Bn in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the B2B Payments Transaction are Mastercard Inc., FIS , Stripe, Inc. , Paystand, Inc., Flywire , Squareup Pte. Ltd, Edenred Payment Solutions , Payoneer Inc. , American Express , Visa Inc. , JPMorgan Chase, Adyen N.V., Billtrust, Coupa Software Inc., Dwolla, Inc., Earthport PLC, FLEETCOR Technologies, Inc., Intuit Inc., Nvoicepay, Inc., Optal Limited, Paytm Mobile Solutions Private Limited, PayPal Holdings, Inc., TransferWise Ltd. (Now known as Wise), and Scoot and Ride. These players are engaged in developing innovative payment solutions and acquiring smaller players to expand their global presence.

The growing adoption of digital payment methods is expected to drive the market growth during the forecast period. Features like increased security, ease of use and automation are encouraging businesses globally to adopt digital payments. Changing consumer behavior and increasing internet penetration are some key factors boosting digital payments adoption.

Globally, emerging markets like Asia Pacific and Latin America are witnessing B2B Payments Transaction Market Size volumes on account of growing internet and smartphone userbase. Moreover, regional initiatives aimed at promoting financial inclusion and digitization are supporting digital payments adoption. Leading players are focusing on expanding into high growth regional markets by partnering with local banks and fintech firms. This trend is expected to continue in the coming years.

Market Key Trends
Real-time payments are gaining prominence in the B2B payments transaction market. Real-time payments enable immediate settlement of transactions and funds availability, reducing reliance on pre-existing payment rails like wire transfers. This provides benefits like improved operational efficiency, cash flow visibility and reduced transaction costs. Growing preferences of digital native businesses and expanding real-time payment networks across regions are fueling adoption of real-time B2B payment methods.

Porter’s Analysis
Threat of new entrants: Low barriers to entry into B2B payments market. However strong presence and network effects of established players will make it difficult for new players to gain scale.

Bargaining power of buyers: Large B2B buyers have significant bargaining power due to their transaction volumes and ability to demand special pricing and services.

Bargaining power of suppliers: Payment processors and banks have moderate power as dominant players like Mastercard, Visa control large payment networks.

Threat of new substitutes: Emerging payment methods like cryptocurrencies offer new substitutes but are yet to gain scale in B2B space.

Competitive rivalry: Intense competition among established players to gain market share through technology innovation, partnership strategies and value added services.

Geographical Regions
North America accounts for the largest share of the global B2B payments market currently, with a share of over 35% in 2024, driven by robust digital economy and early adoption of digital payment methods by businesses in the US and Canada.

Asia Pacific region is expected to witness the fastest growth during the forecast period, projected to grow at a CAGR of over 12%, due to rapid digitalization of businesses, growing e-commerce sales, and strong government support for cashless economy in countries like India and China.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it