Juniper Research predicts that the total value of B2B cross-border payments will grow 30 percent in the next two years. The firm’s research, B2B Payments: Domestic, Cross-Border & Instant Payments 2020-2025, forecasts B2B cross-border payments will reach $35 trillion in 2022, from a Covid-related low of $27 trillion in 2020.
“In the post-pandemic recovery phase, businesses will be more cost conscious, meaning that cross-border payments vendors must offer compelling cost propositions to companies, or they will fail to recover lost traffic,” the firm said in a statement on the research.
The research also identifies instant payments, which are services where funds settle in 10 seconds or less, as another rising trend. According to Juniper, instant payments will account for 9.3 percent of B2B transactions by volume in 2022, up from 6 percent in 2020. However, instant payments will only account for 6.3 percent of B2B transactions by value in the same year, which Juniper says illustrates the low value of these payments, due to low transaction limits for schemes.
Blockchain Also Has High Potential
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.
“In the post-pandemic recovery phase, businesses will be more cost conscious, meaning that cross-border payments vendors must offer compelling cost propositions to companies, or they will fail to recover lost traffic”
“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 commoditized post-pandemic environment,” said researchers.
