The transaction value of B2B cross-border payments of all payment types will exceed $ 42.7 billion in 2026, up from $ 34 billion in 2021.
A study by Juniper Research identifies that this growth of over 25% is due to the increasing popularity of e-commerce markets, which are generally cross-border in nature.
Research has 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 must keep pace with the use of automation, instant payment rails and solutions such as virtual IBANs, which enable the acceptance of payment options. local, essential to future success.
Blockchain has potential, but development is needed
The new research, B2B Payments: Key Opportunities, Vendor Strategies and Market Forecast 2021-2026, revealed that blockchain plays an important role in B2B cross-border payments, with services such as Visa B2B Connect and RippleNet having significant potential. .
However, the report identified that blockchain is not essential to this process – a network of networks can be built without using blockchain, which means blockchain providers need to focus on unique capabilities, such as traceability and immutability, to make it more attractive for B2B payments than alternatives. .
Research author Nick Maynard explains, “Blockchain is not a silver bullet for cross-border payment problems, but it has an important role to play. For networks, making connections is essential to ensure the best reach and appeal in the increasingly globalized B2B payments market. “
The research also found that by 2026, 80% of the global B2B cross-border payment transaction value will be via wire transfers; an increase from 70% in 2021. Instant payments will represent a relatively small proportion of B2B wire transfers, at 22% of these in value in 2026.
Research recommends that until cross-border instant payments are ubiquitous, payment providers should fill in the gaps by ensuring that alternative and manageable methods, such as virtual cards, are available to businesses.