Global cross-border B2B payments to reach US$40 Trillion by 2024: Juniper

Global spending on cross-border B2B payments is set to hit US$40 trillion by the end of 2024, according to a recent study by Juniper Research.

This 9 percent increase from 2022's US$37 trillion is driven by the rising popularity of e-commerce marketplaces, where merchants from international locations sell goods through locally-based e-commerce services.

Cross-border B2B payments refer to transactions between businesses for goods or services made across international borders, regardless of the payment methods used.

These transactions have long been hindered by slow speeds, high costs, and difficulties in tracking, particularly for larger enterprises with complex accounts payable processes.

However, the advent of cross-border instant payments, which complete transactions in 10 seconds or less, is helping to alleviate these challenges. Although these instant payments currently only account for 8 percent of cross-border transactions globally, progress is being made to link up national instant payment schemes.

As co-author Nick Maynard explained, “B2B payment vendors must continue to drive integration of instant payment rails on a national level to address legacy payment channel difficulties.”

The report, B2B Payments: Key Opportunities, Segment Analysis & Market Forecasts 2022-2027 also highlights that the marketplace model in e-commerce is driving growth in both cross-border B2B payments and the e-commerce payments market.

Despite this, the report noted that the model's multiple vendors, varying payment times, and different payment methods create significant complexities in reconciliation, foreign exchange, and fraud prevention.

To tackle these challenges, the report recommended that B2B payment vendors offer features such as integrated virtual cards and virtual International Bank Account Numbers (IBANs) for local payments. These tools will help address the complexities faced by businesses and ensure a seamless cross-border B2B payment experience.