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B2B Digital Payment Market Trends

Report ID: GMI6994
Published Date: Oct 2024
Report Format: PDF

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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.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of B2B digital payment reached USD 7.4 trillion in 2023 and is set to grow at a 17% CAGR from 2024 to 2032, driven by the efficiency and cost-saving benefits of digital payments.

The digital commerce segment accounted for over 60% of the market share in 2023 and is expected to exceed a transactional value of USD 20.2 trillion by 2032 due to its ability to increase efficiency and streamline transactions.

The IT & telecom segment held around 25% of the market share in 2023, led by their focus on technological innovation and digital transformation.

The U.S. market accounted for 87% of the revenue share in 2023 and is expected to exceed a transactional value of USD 2.6 trillion by 2032, supported by a secure financial system and continuous innovation from tech giants and fintech startups.

The key players in the industry include ACI Worldline, Apple Inc., Block, Inc., Fiserv Inc., Global Payments Inc., Mastercard Incorporated, PayPal Holdings, Inc., Stripe, Inc., Visa Inc., and Worldline SA.