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B2B cross-border payments to grow by 30 percent to USD 35 tln by 2022, study

Monday 20 July 2020 13:58 CET | News

A new study from Juniper Research has found that the total value of B2B cross-border payments will reach USD 35 trillion in 2022 from a COVID-related low of USD 27 trillion in 2020, representing 30% growth. 
However, the long-lasting economic impact of the COVID-19 pandemic means that cross-border values will only exceed 2019 values by 2022, highlighting the effect that this major economic disruption will have on businesses around the world.

In the post-pandemic recovery phase, businesses will be more cost conscious; meaning that cross-border payment vendors must offer compelling cost propositions to companies, or they will fail to recover lost traffic.

The new research, B2B Payments: Domestic, Cross-border & Instant Payments 2020-2025, identified that instant payments, services where funds settle in 10 seconds or less, will account for 9.3% of B2B transactions by volume in 2022, up from 6% in 2020. However, instant payments will only account for 6.3% of B2B transactions by value in the same year; illustrating the predominantly low value of these payments, due to low transaction limits for schemes.

The research shows how blockchain networks will increasingly disrupt existing payment types in the cross-border market, driven by requirements for increased efficiency and transparency from traditional money transfer operators. This efficiency, enabled by services including RippleNet and Visa B2B Connect will be critical in enabling these operators to compete with innovative non-bank players. Operators must trial new systems now and refresh their business models, or they will lose market share in a highly commoditised post-pandemic environment.


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Keywords: B2B, cross-border payments, Juniper Research, coronavirus
Categories: Banking & Fintech | Payments General
Countries: World
This article is part of category

Banking & Fintech