B2B Payments Market Size & Outlook, 2025-2033

B2b Payments Market Size

The B2B payments market size was valued at USD 1355.09 billion in 2024. It is projected to reach from USD 1477.05 billion in 2025 to USD 2943.11 billion by 2033, growing at a CAGR of 9% during the forecast period (2025-2033).

Business-to-business (B2B) payment promotes safer transactions for merchants requiring recurring, periodic transactions and offers a variety of tasks to end users, including accounts receivable, accounts payable, payroll, and acquisition departments. It may involve a one-time or recurring transaction based on the buyer and seller's contractual arrangement. Business-to-business (B2B) payments are more complex than business-to-consumer (B2C) payments because B2B payment processing takes longer to approve and settle the transaction.

Increasing digitalization and automation in the B2B payment system has increased its demand among business owners for networking and connecting with various suppliers, distributors, and retailers worldwide. In addition, the expansion of global trade and the increase in cross-border transactions involving many suppliers, wholesalers, retailers, and businesses are the primary forces propelling the global market. However, a rise in commercial payment fraud and the closure of some companies due to the COVID-19 epidemic is expected to hinder market growth. On the contrary, developments in transparency across B2B payments and a rise in partnerships between B2B payment operators and FinTech titans are projected to offer attractive growth prospects for the market.

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B2b Payments Market Growth Factor

Increased Demand from Some Businesses

Several industries, such as healthcare and retail, experienced a surge in demand during the pandemic, increasing demand for products and services, which contributed to an increase in B2B payments. The move from cash payments to digital transactions during the pandemic further drove the need for B2B payments. Hence, the global health crisis has moderately damaged the B2B payment business. Nonetheless, industries such as healthcare and others have contributed significantly to the growth of B2B payments, which has had a favorable effect on the B2B payments market.

B2B payment providers have developed new solutions and implemented new technology to overcome obstacles. Automating accounts payable, e-invoicing and digitizing payments are some of the B2B Payments Market innovations. These capabilities have facilitated the execution of cashless B2B transactions from remote places.

Market Restraint

Impact of Covid Pandemic

As a result of the unprecedented COVID-19 epidemic, a lockdown was implemented in many sectors, and enterprises were forced to implement several operational modifications. Due to restrictions imposed by the government on the flow of goods, transportation, import and export bans, travel restrictions, event cancellations, and others, many businesses have suffered losses and interruptions.

In addition, due to these abnormalities in business operations, B2B payments have been harmed by low demand for goods and services, an erratic supply chain, and the liquidation of businesses. In addition, the number of business-to-business (B2B) transactions decreased due to government-imposed limitations, resulting in a reduction in B2B payments.

The worldwide health pandemic has created several difficulties for B2B payment service providers due to massive business losses, supply shortages, etc. These factors have resulted in a decline in B2B payments, as businesses have either stopped paying for the acquisition of goods and services from wholesalers or are encountering difficulties in making payments, as business owners need help to conduct cash or in-person transactions due to travel restrictions.

Market Opportunity

Adoption of Digital Payment

After the COVID-19 outbreak, company owners have expanded their adoption of digital payments, creating growth equivalent to 10 years in only four months. The tendency has extended throughout B2B payment environments. According to a survey by the NCR Corporation, digital retail transactions in B2B payments have surged dramatically. Since cash transactions were banned during the epidemic, most B2B payments continue to involve paper checks and invoices, resulting in a drop in B2B payments. Some businesses that lacked digital payment capabilities before the epidemic are now progressively adopting B2B payments, a significant industry development. Sixty percent of over 2,000 participants in the 2020 NCR poll have chosen digital payments as the most crucial development in the B2B Payments Market.

The digitalization of the B2B payment arena has made it easier for firms to conduct cross-border commercial transactions, resulting in a rise in international trade and promoting economic growth. This will also aid the business's survival throughout the pandemic.

Regional Analysis

Asia-Pacific is the highest shareholder and is estimated to grow at a CAGR of 11.9% during the forecast period. Several enterprises from China, Japan, and India specializing in financial technology have provided advanced payment technologies to businesses. For example, in April 2020, Harbour and Hills, a significant B2B cross-border payment provider in China, developed an 828 payments gateway that improves the corporate sector business payment transaction process, driving market growth in this area. In addition, cheques, bank transfers, demand draughts, and third-party gateways are prominent traditional commercial payment methods extensively accepted by Asia-Pacific enterprises. This is regarded as a crucial aspect of expanding the regional market.

Europe Market Trends

Europe is the second-largest region and is projected to grow at a CAGR of 9.4%. Increasing adoption of instant payment technology among businesses, improvements in commercial cash management systems, and a rise in the use of digital banking services in the corporate sector are among the most critical factors influencing the adoption of B2B payment technology among business owners. Moreover, several banks and financial institutions have joined with payment technology companies to offer digital payment services to business clients. In addition, merchants' growing use of online payment cards and mobile wallets to acquire items from wholesalers is anticipated to create attractive prospects for companies that provide B2B payment technologies in the coming years.

North America is the third largest region. Most of the world's largest payment solutions providers have opened new offices in the United States to provide complete payment services to small and medium-sized businesses. In February 2021, for example, Edenbull, a prominent provider of business payment cards, launched a new company in the United States. In addition, it provides commercial payment technology and a commercial payments-as-a-service (CPaaS) portfolio to North American banks. Edenbull supplies small business customers with commercial B2B payment technologies. This is vital for enhancing the B2B payment sector in this region.

Payment Type Insights

Based on the transaction type, the market is bifurcated into domestic payments and international payments. The domestic payments sector owns the highest market and is expected to grow at a CAGR of 9.65% over the projected period. This payment method simplifies and automates domestic payment services for small and medium-sized enterprises. This is a significant factor driving the expansion of the domestic B2B payments market. Also, digital B2B payment technology enables business owners to expedite the money transaction procedure when purchasing a product from domestic competition. This drives the market's expansion. In addition, the increase in demand for virtual cards and online payments among business owners stimulates the growth of the B2B payment market.

Cross-border payment is a monetary transaction that allows people, businesses, banks, or other settlement organizations to make payments in at least two countries. It permits business owners to make overseas payments via various means, including bank transfers, credit card payments, and alternative payment methods. The market's expansion is the increasing financial security of international payments, the availability of multicurrency conversion technology, and the lack of strict regulations for cross-border product sales.

Payment Mode Insights

Based on the payment mode, the global market is split into traditional and digital submarkets. The traditional mode dominates the market and is expected to develop at a CAGR of 6.3% over the projected period. Business owners utilize various conventional payment methods, including cash and paper checks, when making payments to suppliers. In addition, business owners' increased use of paper checks due to lower transaction fees is a significant factor driving the expansion of the B2B payment market in this area. Cash is one of the most widely recognized and hassle-free payment methods; thus, most business owners have used cash payment processes to expedite the money transaction service, hence driving market expansion.

Digital payment is an innovative money transfer method that enables company owners and individuals to pay online. Mobile payment, digital wallets, debit cards, and credit cards are widely recognized digital payment technologies among the corporate owners of B2B cash transfer processes, which supports the expansion of this market segment. There is a boost in the adoption of digital payment technology among business owners, as well as numerous benefits, such as the security of financial data and the ease of access to payment information, accelerating the market's growth.

Payment Method Insights

The B2B payment market is categorized based on payment method into ACH, Wire, Cheque, Cash, and others. Other methods are predicted to increase at a CAGR of 9.85 percent during the projection period, making them an important segment.

Industry Vertical Insights

The B2B payment market is split by industry vertical into manufacturing, IT and telecom, metals and mining, energy and utilities, BFSI, and other segments. The IT and Telecom segment dominates the market and is estimated to increase at a CAGR of 11.7% over the projection period. The B2B payment solution enables owners of IT enterprises to make contactless payments with debit cards, credit cards, NFC cards, and mobile wallets. Boost the use of B2B payment technology in the IT industry since it offers numerous advantages, including faster payment processing, more business sales, and a higher customer retention rate. Increased protection of corporate owners' financial data from cyberattacks and the provision of advanced analytic tools, such as machine learning technology, to payment businesses are two of the most significant drivers driving the adoption of B2B payment technology in this category.

The expansion of the worldwide B2B payment market in the manufacturing sector is anticipated to be driven by a combination of factors, including a gradual rise in income and a rise in raw materials expenditures by manufacturers. In addition, there has been an increase in the adoption of B2B payment technology by manufacturers, as it offers several benefits, including the ability to accept multiple payment methods, such as checks, and a fully customizable payment process, as well as the ability to pay every invoice online. In addition, the ability to approve payments for all suppliers, regardless of location, and to pay suppliers electronically without handling sensitive financial information are significant considerations that encourage the manufacturing industry to use B2B payment technology.

Enterprise Size Insights

The B2B payment market is categorized based on enterprise size into major organizations, medium-sized enterprises, and small businesses. The small-sized industries dominate the sector and are anticipated to increase at a CAGR of 11.6% during the projection period. Small companies are expected to increase their adoption of digital payment technologies to streamline payment transactions in the future. This propels the expansion of the market. Small businesses' increased adoption of B2B payment technology to improve company efficiencies, streamline business processes, and manage delegated payment rules drives the market growth. In addition, small firms in healthcare, BFSI, and manufacturing are implementing contactless payment technology, accelerating market expansion. Moreover, as organizations' cash flow increases, the demand for B2B payment solutions among small and medium-sized firms rises, driving market growth.

List of key players in B2B Payments Market

1. American Express
2. Bank of America Corporation
3. Capital One
4. Mastercard
5. Payoneer Inc.
6. PayPal Holdings Inc.
7. Square Inc.
8. Stripe
9. TransferWise Ltd.
10. Visa Inc.

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Recent Developments

• March 2023- Mastercard partnered with Bahrain-based fintech company Infinios Financial Services to accelerate the digitization of B2B travel payments in the Middle East and North Africa (MENA) region.
• February 2023- Flywire Corporation (Flywire), a global payments enablement and software company, announced a partnership with FranConnect, the market leader in franchise management technology, to streamline the payment experience for franchisors seeking to expand their businesses domestically and abroad.