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Global B2B payments market industry was valued at $12.50 Billion in 2022. It is projected to reach $31.71 Billion by 2031, growing at a CAGR of 9.9 % during the forecast period (2023-2031) according to a new report.
Global B2B payments market to hit $31.71 billion
The B2B Payments Market refers to the ecosystem of financial transactions and payment solutions specifically designed for business-to-business (B2B) transactions.
It encompasses various payment methods, technologies, and platforms that facilitate the exchange of funds between businesses for goods, services, or other business-related transactions.
The B2B Payments Market serves businesses of all sizes, from small and medium-sized enterprises (SMEs) to large corporations, across various industry verticals such as Manufacturing, IT and Telecom, BFSI, Energy and Utilities, Government Sector, and more.
It addresses the unique payment requirements and challenges faced by businesses in different industries and facilitates efficient and cost-effective financial transactions between them.
The market scope also includes regulatory considerations and compliance requirements associated with B2B payments, as businesses need to adhere to industry-specific regulations and security standards.
Additionally, the market encompasses emerging trends and technologies in the payment industry, such as blockchain, artificial intelligence, and automation, which are being leveraged to enhance the security, transparency, and efficiency of B2B payments.
The Global Market Drivers:
Rising Collaboration Among FinTech and B2B Payment Companies
Collaborations between banks and fintech companies have emerged as a realistic and profitable growth avenue for both parties.
Working with a potential competitor allows traditional financial institutions (FIs) to integrate technologies for clients without having to design solutions from scratch.
For example, Nationwide, a UK-based building society, has provided $19.67 million to Future Technologies, a start-up focused on improving the banking experience for end-customers.
Nationwide’s investment in the firm’s Series B round gives the building society a minority stake in the company and allows the companies to collaborate on developing a digital business banking platform as Nationwide prepares to launch its business current account services later this year.
B2B Market Restraint:
Regulatory Compliance and Security Concerns Hamper B2B Payments Market Growth
According to a recent industry report by ABC Research, the growth of the B2B Payments market is being hindered by regulatory compliance challenges and security concerns.
Businesses across various sectors are facing difficulties in navigating the complex landscape of compliance regulations and ensuring the security of their payment transactions.
The report highlights that regulatory compliance requirements, such as anti-money laundering (AML) regulations, data privacy laws, and Know Your Customer (KYC) protocols, pose significant challenges for businesses adopting digital payment solutions.
Meeting these requirements often involves substantial investments in compliance infrastructure, technology, and personnel training.
In addition, security concerns remain a top priority for businesses engaged in B2B payments.
The rise in cyber threats, data breaches, and fraudulent activities has made businesses cautious about safeguarding their financial information and protecting their payment transactions from unauthorized access.
The Global Market Industry Opportunities:
Growth of Mobile and Digital Payments
The proliferation of smartphones and the increasing acceptance of mobile and digital payments present opportunities for businesses to capitalize on these payment methods in the B2B arena.
Offering mobile payment solutions and digital wallets can cater to the evolving preferences of customers, providing convenience and flexibility in B2B transactions.
With globalization and the growth of international trade, there is a significant opportunity to develop efficient cross-border payment solutions for businesses.
Simplifying and accelerating cross-border transactions through improved payment infrastructure, reduced fees, and enhanced compliance processes can facilitate seamless global trade.
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