Cross-border B2B transactions will exceed USD 218 trillion by 2022, up from USD 150 trillionin 2018. In comparison, global GDP was placed at just USD 77 trillionin 2017, rising by 3% in 2018.
The new research, B2B Money Transfer: Cross-border Market Opportunities 2018-2022, found that fintech was having a profoundly disruptive effect on traditional cross-border B2B transactions.
Whilst traditional banks still facilitate the vast bulk of B2B cross-border transactions, new technologies, such as virtual accounts, e-invoicing, and blockchain technology will aid in driving businesses to solutions which provide savings in time and transparency.
The proportion of cross-border B2B transfer values facilitated by newer fintech startups and disruptive technologies, will grow from 7.5% in 2017; equating to USD 10.4 trillion, to reach 13.3% or USD 29 trillion by 2022.
According to the research, banks are well placed to benefit from the opportunity posed in B2B transfers. For instance, legislative changes such as PSD2 in Europe, serve as a perfect opportunity to partner with fintechs to deliver new services to companies. Meanwhile, proactive banks will seek to implement blockchain technology.
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