Global B2B Payments Market on a Rapid Growth Trajectory
The B2B payments market will experience substantial growth, reaching $313,947.8 billion by 2031. According to a recent Allied Market Research report, the market, valued at $125,432 billion in 2021, is expected to grow at a robust CAGR of 9.9% from 2022 to 2031.
Drivers of Market Growth
The wave in market size is attributed to several factors, including the widespread adoption of digitalization and automation. These advancements facilitate seamless interactions among businesses, suppliers, and retailers. Additionally, the growth in global trade and cross-border transactions further fuels the market expansion. However, challenges such as increased fraud and the impact of the COVID-19 pandemic have posed hurdles to growth. Despite these, advancements in digital solutions and increased partnerships among B2B payment and FinTech players drive future growth.
COVID-19 Impact and Recovery
The pandemic significantly impacted the B2B payments sector due to global lockdowns and business disruptions. However, the market is poised for recovery with new strategies and innovations for expanding business operations and enhancing product offerings.
Segment Analysis
- Payment Type: Domestic payments led the market in 2021, capturing over two-thirds of the market share. This segment projects to maintain its dominance. Conversely, cross-border payments are expected to grow at the highest rate of 11.8% CAGR, driven by improved financial security and multicurrency technologies.
- Enterprise Size: Small-sized enterprises are forecasted to experience the highest CAGR of 13.1%, driven by increased adoption of B2B payment technologies. Large enterprises, however, have the largest market share, benefitting from the significant adoption of B2B payment solutions.
- Industry Vertical: The manufacturing sector held the largest market share in 2021. This sector’s use of blockchain technology in digital payments helps streamline processes and reduce fraud. The IT and telecom sector projects the highest CAGR of 15.1%, owing to enhanced financial security and advanced analytics.
- Regional Insights: Asia-Pacific dominated the market in 2021 and expects to continue its lead with a projected CAGR of 12.2%. The region’s digital transformation trends contribute to its strong growth.
Leading Market Players
Key industry players include JPMorgan & Chase Co., Mastercard, American Express, PayPal Holdings, Inc., and others. These companies focus on expansion, partnerships, and new product launches to strengthen their market presence.
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