Payment service providers take note; the global transaction value of the B2B payments market will exceed $111 billion in 2027, up from just over $88 billion in 2022. It predicts that this 26% growth will be driven by rising prices caused by rampant inflation, as well as strong economic growth in developing markets .
The report identified the increased automation of accounts payable and receivable as critical to the increasing efficiency of payment processing; creating a significant opportunity for B2B payment providers.
A B2B payment is any payment made between businesses for goods or services, regardless of whether it is national or international, or via different payment methods.
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Automation is essential to reduce massive inefficiencies
The research predicts that with the average business making over 1,400 domestic payments per year globally by 2027, improving the efficiency of payment processes will be critical. It found that instant payments, and the additional remittance data provided by the ISO 20022 standard, will open up greater opportunities to seamlessly organize and reconcile payments, enabling automated reconciliation.
Research co-author Nick Maynard explains: “By harnessing new technologies within the accounts payable and debiting processes, businesses can unlock significant cost savings, which are essential in a time of economic uncertainty.”
New payment methods promising, but need further development
In addition, the research found that new payment methods, such as CBDCs (Central Bank Digital Currencies), hold significant promise in solving challenges within the B2B payments sector. By being purely digital, CBDC payments will be able to be fully automated, and easily tracked wherever the payment is. However, CBDCs must be designed with B2B payment usage in mind, given that B2B payments are generally more complex than consumer payment processes. As such, the report recommends that B2B payment providers participate in trials and pilots to ensure these difficult use cases are considered from day one.