B2B Digital Payment Market Size - By Payment, By End use, Analysis, Share, Growth Forecast, 2024 - 2032

B2B Digital Payment Market Size

The global B2B digital payment market size was valued at USD 7.4 trillion in 2023 and is projected to grow at a CAGR of 17% between 2024 and 2032. Digital payments are growing faster than traditional methods because they are more efficient and save money. They make financial transactions easier and reduce costs, helping the market grow. Automation and digitalization remove the need for paperwork and manual tasks, making payment processes simpler.

 

In September 2023, Mastercard partnered with KredX, a supply chain finance platform, to improve B2B digital payments. This partnership adds Mastercard's commercial card services to the KredX platform, making B2B card payments easier. These efforts speed up transactions and lower administrative costs, making digital payments a good choice for businesses looking to improve their financial operations and profitability.
 

According to GMI, the global digital payments market is expected to grow at a compound annual growth rate (CAGR) of 16% from 2024 to 2032. The increasing use of smartphones and internet access are major factors driving this growth. Additionally, government initiatives promoting cashless transactions and advancements in payment technologies are further boosting the market. Moreover, the COVID-19 pandemic has accelerated the shift towards digital payments, as consumers and businesses seek safer and more convenient payment options. Contactless payments have seen a significant rise in usage, contributing to the overall growth of the market.
 

In the B2B digital payments market, several recent developments highlight the ongoing shift toward electronic and automated payment systems. Cross-border transactions have been a major driver, with partnerships between B2B payment providers and large tech firms like Visa and Payoneer aimed at facilitating global commerce.
 

For instance, Bank of America’s CashPro app, used for corporate payments, saw a substantial increase in transaction volume, handling over $500 billion in payments in just the first half of 2024, driven by integrations with major ERP and treasury management systems. The app provides streamlined support for corporate transactions and offers real-time insights, demonstrating the demand for integrated payment tools.
 

B2B Digital Payment Market Trends

The B2B digital payments industry outlook is being bolstered by globalization and cross-border transactions. As international trade expands, B2B transactions increasingly involve cross-border payments. Research from Mastercard in 2022 highlighted that the pandemic catalyzed a 47% surge in international business activities among small enterprises. Notably, 68% of these small businesses credit their survival to the global payment network's efficient operations.
 

Digital payment solutions enhance cross-border transactions by providing competitive exchange rates, minimizing currency conversion fees, and speeding up transfers. This facilitation encourages businesses to participate in global commerce, promoting the uptake of B2B digital payments.
 

The integration of Blockchain and Distributed Ledger Technology (DLT) is reshaping the B2B digital payments landscape. These innovations bolster transaction security, transparency, and efficiency. Furthermore, smart contracts can streamline intricate B2B payment processes, curtailing the reliance on intermediaries and diminishing dispute risks.
 

Industry players are proactively forming strategic alliances to introduce innovative offerings and meet escalating business demands. For example, in May 2023, RocketFuel Blockchain, Inc., a leading global payment solutions provider, announced a significant collaboration with Zebra Digital, Inc., a renowned global tech firm. This partnership aims to revolutionize cross-border B2B financial transactions using stablecoins and other cryptocurrency alternatives.
 

However, numerous businesses rely on established processes and legacy systems for payment handling. Shifting to digital payment methods poses potential costs and disruptions. Additionally, some firms resist change due to inertia, concerns about operational disruptions, and the perceived need for hefty investments in new technologies and training. Such reservations can hinder their full adoption of digital payment solutions, stunting the growth of the B2B digital payments sector.
 

B2B Digital Payment Market Analysis

Based on payment, the market is segmented into digital commerce, digital remittances & mobile POS payments. In 2023, the digital commerce segment accounted for over 60% of the market share and is expected to exceed transactional value USD 20.2 trillion by 2032. Digital commerce is dominant in the B2B digital payment market due to its ability to increase efficiency and streamline transactions, reducing the time and resources required for invoicing and payment processing. By automating workflows, businesses can achieve quicker transaction cycles, which enhances operational efficiency.
 

Additionally, digital commerce platforms facilitate global reach, allowing companies to engage in international trade and cross-border transactions, thereby driving demand for versatile digital payment solutions that accommodate multiple currencies and regulatory environments.
 

Based on the end use, the B2B digital payment market is divided into BFSI, transportation & logistics, IT & telecom, healthcare, retail, travel & hospitality, e-commerce. The IT & telecom segment held around 25% of the market share in 2023 due to several key factors, industries are at the forefront of technological innovation, driving the development of advanced payment solutions that facilitate seamless transactions. Their focus on digital transformation allows for the integration of cutting-edge technologies, such as blockchain, artificial intelligence, and machine learning, which enhance security and streamline payment processes.
 

The high volume of transactions within these sectors necessitates efficient payment systems. IT and telecom companies often deal with large-scale transactions and recurring billing, creating a demand for reliable and fast payment solutions that can handle complex billing cycles and reduce operational costs. 
 

U.S. B2B digital payment market accounted 87% of the revenue share in 2023 and is expected to exceed transactional value USD 2.6 trillion by 2032, the country has a secure financial system with advanced payment gateways and reliable internet access, which supports digital transactions. Innovation from tech giants and fintech startups continues to push advancements in real-time payments, blockchain, and AI-driven fraud detection, making the U.S. a hub for cutting-edge payment solutions. Additionally, American businesses value efficiency, and digital payments align well with their goals to improve cash flow and reduce transaction costs.
 

Asia-Pacific leads the B2B digital payment market largely due to rapid digitalization, government support, and the region’s large and growing e-commerce sector. Many countries in the region, like China, India, and Southeast Asian nations, have invested heavily in digital infrastructure, enabling widespread access to mobile internet and payment platforms. Government initiatives, such as India's Digital India campaign and China’s support for a cashless society, have accelerated the adoption of digital payments.
 

The European Union’s Single Euro Payments Area (SEPA) has created a unified payment structure, enabling efficient and low-cost cross-border payments across the region, which is crucial for B2B transactions within Europe’s interconnected economies. This harmonization reduces complexities and costs, making digital payments highly attractive for businesses. Regulations such as the Revised Payment Services Directive (PSD2) have promoted open banking, allowing third-party payment providers to access bank data securely and driving innovation in digital payment solutions.
 

European businesses benefit from robust fintech ecosystems, especially in countries like the UK, Germany, and the Netherlands, where startups and established financial institutions lead advancements in real-time payments, blockchain, and data-driven payment solutions. Europe’s commitment to data security and stringent regulations, like GDPR, has built trust in digital payment solutions among businesses, further accelerating adoption.
 

B2B Digital Payment Market Share

Mastercard Incorporated and Visa Inc. collectively held a substantial market share of over 25% in the B2B digital payment industry in 2023, both companies have invested heavily in technology, constantly evolving their offerings to cater to changing B2B needs. Through partnerships, acquisitions, and innovations in real-time payments, blockchain, and APIs, Mastercard and Visa have adapted to provide solutions for faster and more efficient B2B payments.
 

They also integrate advanced data analytics and fraud prevention technologies, ensuring secure transactions while meeting strict regulatory compliance standards. Their recent focus on open banking and B2B-specific products, like Mastercard Track and Visa B2B Connect, further demonstrates their commitment to the B2B market by addressing pain points like delayed payments, high processing fees, and currency conversion complexities.
 

B2B Digital Payment Market Companies

Major players operating in the B2B digital payment industry are:

• ACI Worldline 
• Apple Inc. 
• Block, Inc. 
• Fiserv Inc.
• Global Payments Inc. 
• Mastercard Incorporated 
• PayPal Holdings, Inc. 
• Stripe, Inc. 
• Visa Inc. 
• Worldline SA
   

B2B Digital Payment Industry News

• In September 2024, Visa and Korea Trade-Investment Promotion Agency (KOTRA) launched the Global Trade Payment Platform (GTPP) to simplify trade settlements for South Korean small- and medium-sized businesses (SMBs). Supporting payments from key trading partners, GTPP reduces fees, enhances security, and expedites payment processing, facilitating seamless digital transactions to support SMB growth in Korea’s B2B market.
   
• In July 2024, Network International, in partnership with Mastercard, launched new Business Payment Solutions in the UAE, offering corporate cards, expense management, and virtual cards to streamline business expenses and enhance cash flow. These solutions, including Corporate Executive and Digital Travel Payments, aim to digitize payments, improve liquidity, and support the UAE's cashless economy ambitions.
   

The B2B digital payment market research report includes in-depth coverage of the industry with estimates & forecast in terms of transactional value ($Bn) and transactional volume ($Mn) from 2021 to 2032, for the following segments:

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Market, By Payment

• Digital commerce
• Digital remittances
• Mobile POS payments

Market, By End use

• BFSI
• Transportation & logistics
• IT & telecom
• Healthcare
• Retail
• Travel & hospitality
• E-commerce
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa