B2B cross-border transactions to reach 14.8 billion by 2023, as blockchain payment networks gain traction
Blockchain payment networks gain traction – research. Source: shutterstock.com
A new study from Juniper Research found that 14 billion B2B cross-border transactions will be processed by 2023; rising from 13.5 billion in 2019, a 7% increase. This will be driven by the introduction of blockchain-based payment networks.
According to the research, international payments will become faster, cheaper and less complex; driven by network innovation. The digitalization of cross-border payment networks, aligned with the use of cloud-based tools, APIs and blockchain, will enable the replacement of bilateral networks with multilateral models; improving efficiency and reducing costs.
The research ranked the five leading B2B payment vendors as follows:
- Money Corp
- TorFX
- TransferMate
- OFX
- Currencies Direct
Money Corp offers comprehensive platform functionalities, including specific solutions for eight different industries. TorFX offers a broad range of foreign exchange services, marketing insights and the innovative scheduling of regular overseas payments. Third-ranked TransferMate supports transactions in an impressive 134 currencies.
Most international B2B transactions are still made via traditional, bilateral methods due to legacy infrastructure, which results in slow, non-traceable and expensive transactions. The lack of transparency inherent in these systems allows intermediate banks and non-banking institutions to charge high exchange rates and additional fees.
As blockchain affords complete traceability of transactions, its introduction would increase transparency, improve standardization and reduce errors. The research recommended that payment network providers must invest in blockchain to ensure future competitiveness.
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