Non-bank B2B payments volume is set for impressive growth

The research sheds light on the non-bank B2B payments boost

non-bank B2B payments

Non-bank B2B payments volume is set for impressive growth. Source: shutterstock.com

According to Juniper Research, the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, compared to 38 billion in 2020. That’s a 42% growth.

The report stated that these vendors will account for 12.6% of B2B payments by volume over 2 years. Despite the slow economic recovery due to the pandemic, non-bank B2B payments will exceed 2019 volumes in 2021.

Since businesses recover from the coronacrisis, they are fundamentally reassessing their operations to maximize efficiency. This way, banks and traditional money transfer operators face a reckoning, pressed by newer, more innovative players offering more cost-effective solutions.

Juniper Research identified TransferWise, Veem, and Currencycloud as the top 3 non-bank vendors.

They offer digital capabilities in terms of efficiency, cost, and value. That allows them to rapidly gain market share and threaten established market structures.

Fintech vendors have risen to prominence by offering both greater efficiency and ease of use, calling into question the fundamental approach that banks take. Banks must turn to APIs for greater automation, as well as more competitive pricing, to retain some influence in this highly lucrative market
Nick Maynard, research author 

Besides, automation will be crucial in fixing the challenges faced by businesses in their payment processes. It must be enabled using open APIs, which can simplify sharing data between different systems.

We’ve reported that Mastercard has launched its Track Business Payment Service, which enables greater control over transactions. Besides, it provides automated reconciliation for suppliers and application of all payment options approved by them.

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