Global B2B Cross-border Payments Market Size Likely to Grow at a CAGR of 7.2% By 2033

According to current market research conducted by the CMI Team, the global B2B Cross-Border Payments Market is expected to record a CAGR of 7.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 67.97 Trillion. By 2033, the valuation is anticipated to reach USD 121.84 Trillion.

B2B Cross-border Payments Market: Growth Factors and Dynamics

• Technological Advancements: The growth of cross-border payments in B2B mainly depends on the technological developments. With supporting innovations, like blockchain, security and transparency in the transactions are improved and the expenses related to the international payment processes are lowered within the time frame. Instantaneous payment systems are able to process transactions within the organizations quickly increasing their cash management and operational productivity levels. Additionally, detection of fraud and risk management continue to incorporate more artificial intelligence and machine learning as more transactions are conducted. These technological developments reduce the inefficiencies that currently exist in the systems and satisfy the increasing need for quick, cheap and efficient solutions to cross border payments.

• Globalization and International Trade: The development of international corporate business activities and markets has also enhanced the growth of the B2B cross-border payments market. Advancing trade liberalization makes business enterprises participate even more into foreign trade activities and therefore call for proper and secure payments systems to be in place. Investment treaties and economic integration policies also promote trade outward, compelling enterprises to look for freezing expansion worries payment methods for their businesses. In addition, the dependence of cross border e-commerce on the growth of e-commerce especially the business to consumer e-commerce has been swift. This increasing trend gives an explanation as to why businesses require quite dynamic payment systems that can easily accommodate a number of different currencies and regulations for country expansion.

• Regulatory Developments: Regulatory developments are an important driving force in the nature of B2B cross-border payments. There is a tightening of regulations regarding money laundering, terrorism financing and other financial crimes in almost every corner of the globe. Such regulatory requirements, as anti-money laundering (AML) or know your customer (KYC), which are unavoidable for cross border business transactions, raise the need of protected and compliant payment options. In addition, regulatory measures such as the Single Euro Payments Area (SEPA) and the Payment Services Directive (PSD2) in Europe support the enhancement and standardization of payment services, creating favourable circumstances for the development of the market.

• Fintech Disruption: Fintechs are transformative factors in the B2B cross-border payment sector owing to their spawned technologies which promise new and improved methods of payment. These Fintechs provides services mainly through penetrating the weaknesses of the conventional bank systems such as ease of use, low cost of transacting and speed of process. Companies are now adopting digital wallet services, P2P payment systems, and blockchain technology for conducting cross border trade payments within their enterprises. Furthermore, as Fintechs are agile in having their services suit demands, competition has risen and hence traditional financial institutions have been forced to create and innovate to survive.

• Demand for Financial Inclusion: The B2B cross-border payments market has a notable demand for financial inclusion, especially in developing countries. In such areas, corporations find it necessary to get involved in international commerce but lack inexpensive payment methods in order to do that. The spread of mobile payment technologies and digital banking has enhanced the effort towards making sure that businesses participate in international payments as they provide tools that are affordable and easier to use. Initiatives that enhance abilities in managing money as well as access to financial services are also being supported by the governments and various institutions which extend the cross-border payment market to more regions.

• Strategic Partnerships and Collaborations: In the B2B cross-border payments market, growth is particularly shaped by strategic partnerships and collaborative relationships between the financial institution, technology, and payment service industries. They allow the companies to use such potentialities as the wonder of existing customer databases, knowledge of the regulations, or technical abilities in order to make up new ways of payment. Such partnerships include the introduction of new systems such as AI, blockchain, and cloud computing in the current infrastructures improving the systems and their levels of protection. The partnerships also fetch more markets for the companies by giving the organizations otherwise unilluminated several payments containing networks and different geographical regions stimulating the creativity of the industry.

B2B Cross-border Payments Market: Partnership and Acquisitions

• October 2023: Square Capital LLC unveiled Tap to Pay on iPhone in Australia, integrating the technology into its Square Point of Sale, Square for Retail, and Square Appointments iOS apps. This innovation enables businesses of varying sizes to accept contactless payments directly from their iPhones without additional hardware costs.

• July 2023: Grow Finance collaborated with Pismo to issue new Mastercard credit cards specifically for Australian small businesses. This program is intended to improve cash flow management and provide working capital, thus aiding the business’s expansion.

• April 2023: Stripe began offering unified commerce solutions for Australia, allowing all types of businesses to accept in-person payments. Using the Stripe Terminal SDK, businesses can combine online and in-store sales using Tap to Pay on Android and Stripe Readers, thus making payment integration easier with a single platform.

Report Scope

B2B Cross-border Payments Market: COVID-19 Analysis

The COVID-19 pandemic significantly impacted the cross-border payments market as it resulted to collapse or stagnation of trade and commerce. The fundamental drivers of cross border payment transactions, most of them interrelated international business, tourism and remittance have been adversely affected by the fall of these sectors.

The phenomenal increase in the international trade and transactions wasn’t only experienced due to the post-social distancing and lock down period. As a result, there was limited drop in B2B cross border payments, as businesses often postponed or cancelled payments due to high market risk and low goods and services demand.

Furthermore, closure of borders during the pandemic led to the widespread impacts on the cross-border payments due to restrictions on travel payments. This was perpetrated by lack of foreign travel as most international tourist activities that drive cross-border spending and foreign exchange transactions were absent, thus reducing foreign currency payments made by travellers and other digital payment services.

List of the prominent players in the B2B Cross-border Payments Market:

• PayPal Holdings Inc.
• Visa Inc.
• Mastercard Incorporated
• American Express Company
• Citigroup Inc.
• JPMorgan Chase & Co.
• Bank of America Corporation
• HSBC Holdings plc
• Barclays plc
• Wells Fargo & Company
• Western Union Holdings Inc.
• MoneyGram International Inc.
• TransferWise Ltd (now known as Wise)
• Ripple Labs Inc.
• Payoneer Inc.
• Others

The B2B Cross-border Payments Market is segmented as follows:

By Activity

• Large Enterprise Size
• Small and Medium-sized Enterprises

By End-user

• Individuals
• Businesses

By Channel

• Bank Transfer
• Money Transfer Operator
• Card Payment
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America