Skip to main content

B2B Payments Processed by Fintech will Reach 53 Billion

How businesses pay each other is an essential process for all organizations. They have suppliers, and therefore all need access to effective payment systems. That said, the lack of meaningful digital transformation within the business-to-business (B2B) payments sector has challenged the established systems.

In this context, the digital disruption of the traditional B2B payments ecosystem is now more important, to enable companies to perform financial transactions as efficiently as possible. Fortunately, there's a multitude of forces developing in this market, with more new vendors attempting to drive innovation.

B2B Payments Market Development

According to the latest worldwide market study by Juniper Research, the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022 -- that's up from a COVID-related low of 38 billion in 2020; representing 42 percent growth.

These new vendors will account for 12.6 percent of B2B payments by volume in 2022. Despite the slow recovery elsewhere in the economy due to the COVID-19 pandemic, non-bank B2B payments will exceed 2019 volumes in 2021 -- showing how the migration from offline to online, and the need for greater efficiency, is helping non-traditional vendors.

As businesses recover from the pandemic, they are fundamentally reassessing their operations to maximize efficiency. As such, banks and traditional money transfer operators face a reckoning, pressed by newer, more innovative fintech players that offer more cost-effective solutions.


The new study analyzed twenty leading challenger B2B payment providers, examining their B2B payment offerings and related digital innovation. The top 3 non-bank vendors identified by Juniper Research were: TransferWise, Veem, Currencycloud.

These leading fintech vendors offer digital capabilities that are unmatched in terms of efficiency, cost, and value -- allowing 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," said Nick Maynard, lead analyst at Juniper Research. "Banks must turn to APIs for greater automation, as well as more competitive pricing, to retain some influence in this highly lucrative market."

The analyst's research found that automation will be crucial in solving the many challenges faced by businesses in their existing payment processes.

According to the Juniper assessment, this process automation must be enabled using open APIs, which can radically simplify sharing data between different financial systems and associated organizations.

Outlook for B2B Payment Applications Growth

However, this automation will require a collaborative ecosystem to emerge, whereby B2B payments vendors integrate their systems with ERP and accounting packages. Otherwise, payment processes will remain highly manual and time-consuming for CFOs and their staff.

I anticipate that more enterprise CIOs and CTOs will review the security measures when they consider the deployment of open APIs, or connect with another organization's API services. The application of security policies is one area where companies can mitigate cyber threats and reduce risks from open APIs.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul