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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.

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