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 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 can process organizational transactions, quickly increasing their cash management and operational productivity levels. Additionally, fraud detection and risk management continue incorporating more artificial intelligence and machine learning as more transactions are conducted. These technological developments reduce the current inefficiencies 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 in foreign trade activities and, therefore, calls for proper and secure payment 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 business-to-consumer e-commerce, has been swift. This increasing trend explains why businesses require dynamic payment systems that can easily accommodate several different currencies and regulations for country expansion.

• Regulatory Developments: Regulatory developments are an important driving force, like 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, such as anti-money laundering (AML) or know your customer (KYC), unavoidable for cross-border business transactions, raise the need for 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 market development.

• Fintech Disruption: Fintechs are transformative in the B2B cross-border payment sector owing to their spawned technologies, which promise new and improved payment methods. These Fintechs provide services mainly by penetrating the weaknesses of conventional bank systems, such as ease of use, low cost of transaction, and speed of process. Companies are now adopting digital wallet services, P2P payment systems, and blockchain technology to conduct cross-border trade payments within their enterprises. Furthermore, as Fintechs are agile in their services to 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. The spread of mobile payment technologies and digital banking has enhanced the effort to ensure businesses participate in international payments as they provide affordable and easier tools. The governments and various institutions that expand the cross-border payment market to more regions also support initiatives that improve money management skills and access to financial services.

• Strategic Partnerships and Collaborations: In the B2B cross-border payments market, strategic partnerships and collaborative relationships between the financial institution, technology, and payment service industries are vital for shaping growth. They allow companies to use potentialities such as the wonder of existing customer databases, knowledge of the regulations, or technical abilities to make up new ways of payment. Such partnerships include introducing new systems such as AI, blockchain, and cloud computing in the current infrastructures, and 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 industry’s creativity.

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 in the collapse or stagnation of trade and commerce. The decline of these sectors has had a negative impact on the fundamental drivers of cross-border payment transactions, which are typically interrelated international business, tourism, and remittance. The phenomenal increase in international trade and transactions wasn’t only experienced due to the post-social distancing and lockdown period.

As a result, there was a limited drop in B2B cross-border payments, as businesses often postponed or canceled payments due to high market risk and low goods and services demand. Furthermore, the closure of borders during the pandemic led to widespread impacts on cross-border payments due to restrictions on travel payments. This was perpetrated by a 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 travelers 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