by B2B payments often involve larger transaction volumes as compared to B2C payments. Products associated with the B2B payments transaction market include digital wallets, virtual cards, cross-border payments, procurement cards, and account-to-account payments. These products enable businesses to effectively manage payment processes and transactions both domestically and internationally in a secure digital environment. The efficiency and security offered by digital B2B payment solutions have boosted their adoption over traditional methods like checks and wire transfers.
The Global B2B Payments Transaction Market is estimated to be valued at US$ 3,021.25 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the B2B Payments Transaction market include 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.
The growing demand from SMEs for digital payment solutions is driving the B2B Payments Transaction Market Size. SMEs are rapidly adopting B2B e-commerce platforms and payment gateways to facilitate seamless transactions. This is reducing their dependence on traditional methods of receiving and making payments.
The market is also witnessing increased globalization with businesses expanding their operations across borders. This is propelling the need for cross-border payment facilities. Digital solutions are enabling frictionless and timely payments across geographies, positively impacting international trade.
Market Key Trends
Globalization within the market is one of the major trends. As companies expand globally, there is a growing need to simplify cross-border B2B payments. Digital platforms are revolutionizing cross-border payments by offering 24/7 payment tracking, multi-currency support, and streamlined compliance and reconciliation processes. This is boosting the demand for associated services.
Porter’s Analysis
Threat of new entrants: The B2B payments transaction market has a moderate threat of new entrants due to the high banking infrastructure required.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous payment providers in the market.
Bargaining power of suppliers: Payment providers have low bargaining power as there are many buyers in the market with alternative payment options.
Threat of new substitutes: The threat of new substitutes is moderate as new payment technologies can disrupt existing payment methods.
Competitive rivalry: The market experiences high competitive rivalry due to the presence of major players like Mastercard, Visa, American Express, etc.
Geographical Regions
North America accounts for the largest share of the global B2B payments transaction market in terms of value. The region benefits from high internet penetration, widespread adoption of digital payments, and presence of major payment players.
The Asia Pacific region is expected to grow at the fastest pace during the forecast period. Rapid digitalization of businesses, rising internet and smartphone penetration, and initiatives by governments to promote digital payments are driving the market in the region. Countries like China and India are emerging as high potential markets.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
