Challenger B2B Payment Providers to Grow Transactions by 42% by 2022, as Traditional Vendors Lose Market Share

Challenger B2B Payment Providers to Grow Transactions by 42% by 2022, as Traditional Vendors Lose Market Share
17.08.2020 02:22 pm

Challenger B2B Payment Providers to Grow Transactions by 42% by 2022, as Traditional Vendors Lose Market Share

Payments

A new study from Juniper Research has found that the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020; representing 42% growth. These vendors will account for 12.6% of B2B payments by volume in 2022. Despite the slow recovery elsewhere in the economy due to the pandemic, non-bank B2B payments will exceed 2019 volumes in 2021, showing how the migration from offline to online, and the need for greater efficiency, is helping non-traditional vendors.

As businesses recover from the pandemic, they are fundamentally reassessing their operations to maximise efficiency. As such, banks and traditional money transfer operators face a reckoning, pressed by newer, more innovative players offering more cost-effective solutions.

For more insights, download the free whitepaper: 3 Key Trends Revolutionising B2B Payments.

Fintech Players Beating Banks on Innovation

The new research, B2B Payments: Domestic, Cross-border & Instant Payments 2020-2025, analyses 20 leading challenger B2B payment providers examining their B2B payment offerings and digital innovation.

The top 3 non-bank vendors identified by Juniper Research as Innovative Leaders were:

• TransferWise
• Veem
• Currencycloud

These leading vendors offer digital capabilities that are unmatched in terms of efficiency, cost and value; allowing them to rapidly gain market share and threaten established market structures.

Research author Nick Maynard noted: “Fintech vendors have risen to prominence by offering both greater efficiency and ease of use, calling into question the fundamental approach that banks take. Banks must turn to APIs for greater automation, as well as more competitive pricing, to retain some influence in this highly lucrative market.”

Automation Key to Boosting Efficiency

The research found that automation will be crucial in fixing the challenges faced by businesses in their payment processes. This automation must be enabled using open APIs, which can radically simplify sharing data between different systems.

However, this automation will require a collaborative ecosystem to emerge, whereby B2B payments vendors integrate their systems with ERP and accounting packages, otherwise payment processes will remain highly manual and time-consuming.

Related News

SWIFT Announces a New Strategy for Instant, Frictionless Payments and Securities Processing

SWIFT announces that over the next two years and beyond it will fundamentally transform payments and securities processing, retooling cross-border... Read more »

EBANX and Amazon Announce Partnership in Colombia During the Latin America Summit

EBANX and Amazon announced a partnership in Colombia this Thursday, September 17, 2020, at the chapter one of the... Read more »

Openpay Makes Marquee Signing with Fulham Football Club

Openpay, the UK’s latest next-generation, interest-free payment solution, has announced Fulham Football Club as the latest addition to its... Read more »

MeaWallet Introduces New SoftPos Solution MeaPay to Enable Contactless Payments

Accepting contactless payment can be a headache for any small business, store, or independent worker who must buy or lease expensive and cumbersome payment hardware. MeaPay... Read more »

Number of Month-on-Month Mobile Money Transactions Increase in Somalia Despite COVID-19 Pandemic

Somalia’s largest private employer and leading telecommunications operator, Hormuud Telecoms, has announced that the numberof month-on-month mobile money... Read more »

MYPINPAD Partners with EVO Payments for VISA Tap to Phone Technology

MYPINPADthe global leader in secure personal authentication... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel