Since businesses accelerate payments automation to reduce costs, improved efficiency will facilitate B2B payments growth
A new study from Juniper Research discovered that the global transaction value of the B2B payments market will exceed $111 trillion in 2027. This illustrates a 26% growth from just over $88 trillion in 2022.
The research predicts this growth will be driven by inflation which is bloating prices, along with the strong economic growth in developing markets. In addition, the increased automation of accounts become critical to the growing efficiency of payment processing. All these factors create a significant opportunity for B2B payment vendors.
Besides, instant payments and the additional remittance data enabled by the ISO 20022 standard will unlock greater opportunities for seamless automated reconciliation. As predicted, the average business will make over 1,400 domestic payments per year globally in 2027.
Finally, new payment methods, such as CBDCs (Central Bank Digital Currencies), can be really helpful in solving challenges within the B2B payments sector. To be efficient in this way, CBDCs must be designed with B2B payment use cases in mind.
As B2B payments are generally more complex than retail payments, the report recommends that B2B payment vendors contribute to the CBDC design by participating in trials and pilots to ensure all specific nuances are considered.