The increased popularity of e-commerce marketplaces, which are generally cross-border will drive this growth of over 25%
Juniper Research has found that the transaction value of B2B cross-border payments of all payment types will exceed $42.7 trillion in 2026, up from $34 trillion in 2021.
Along with that, the research identified that the B2B cross-border payments market is highly fragmented, with payments being slow, expensive and difficult to track.
As cross-border e-commerce accelerates, B2B payments need to keep pace, with the use of automation, instant payment rails, and solutions like virtual IBANs, which enable acceptance of local payment options.
The research has also found that blockchain plays an important role in B2B cross-border payments, with services such as Visa B2B Connect and RippleNet having significant potential.
Although, the report identified that blockchain is not essential to this process. That’s because a network of networks can be built without using blockchain, meaning blockchain vendors must emphasise unique abilities, such as traceability and immutability, to make it more appealing for B2B payments than the alternatives.
The research found that by 2026, 80% of the overall transaction value of B2B cross-border payments will be via wire transfers; an increase from 70% in 2021. Instant payments will account for a relatively low proportion of B2B wire transfers, at 22% of these by value in 2026.
We’ve reported that half of Canadians do not yet have retirement plan.