Middle East and Africa B2B Payments Market

Market Overview

The Middle East and Africa B2B Payments Market Size was valued at USD 54 billion in 2021. It is projected to reach USD 122 billion by 2030, growing at a CAGR of 9.6% during the forecast period (2022-2030).

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.

Middle East and Africa are included in the analysis of the B2B payments market in MEA. Increased adoption of real-time payment technology by businesses to streamline the money-transaction process is viewed as a significant factor driving the growth of the market in MEA. Several industries, including healthcare, IT and telecom, and retail, have adopted the B2B payment system due to its numerous benefits, which include payment transaction speed, transparency, and security.

Highlights

• The domestic payments dominate the payment type segment.
• The digital mode dominates the payment mode segment.
• The manufacturing sector dominates the industry vertical segment.
• The large industries dominate the enterprise size segment.

Market Dynamics

The Middle East and Africa B2B Payments Market Drivers:

Increased Adoption of Instant Fund Transfer Technologies

Commercial business owners' increased adoption of instant fund transfer technologies, such as mobile payment, drives the expansion of the Middle East and Africa (MEA) market. In addition, immediate fund transfers, instant confirmation of money transfers, and the encouragement of businesses to use digital payment services by prominent key players such as Mercado Pago, Samsung Pay, and Google Pay are significant factors driving the growth of the B2B market in this region.

The Middle East and Africa B2B Payments 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 Middle East and Africa B2B Payments Market Opportunities:

Adoption of Digital Payment Technologies

An increase in disposable income and the active participation of business owners in online social media contribute to expanding the B2B payments market in this region. Moreover, the growth of various innovative applications and the rise in small and medium-sized business owners' adoption of digital payment technology has increased the number of payment transactions, which drives the market's growth. 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

Middle East and Africa are included in the analysis of the B2B payments market in LAMEA. Increased adoption of real-time payment technology by businesses to streamline the money-transaction process is viewed as a significant factor driving the growth of the market in LAMEA. Several industries, including healthcare, IT and telecom, and retail, have adopted the B2B payment system due to its numerous benefits, which include payment transaction speed, transparency, and security.

Commercial business owners' increased adoption of instant fund transfer technologies, such as mobile payment, drives the expansion of the Middle East and Africa (MEA) market. In addition, immediate fund transfers, instant confirmation of money transfers, and the encouragement of businesses to use digital payment services by prominent key players such as Mercado Pago, Samsung Pay, and Google Pay are significant factors driving the growth of the B2B market in this region.

An increase in disposable income and the active participation of business owners in online social media contribute to expanding the B2B payments market in this region. Moreover, the growth of various innovative applications and the rise in small and medium-sized business owners' adoption of digital payment technology has increased the number of payment transactions, which drives the market's growth.

Segmental Analysis

The Middle East and Africa B2B Payments Market is segmented into five categories: Payment Type, Payment Mode, Enterprise Size, and Industry Vertical.

Based on the transaction type, the B2B payments 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 10.2% over the projected period.

Based on the Payment Method, the global B2B Payments market is split into traditional and digital submarkets.

The digital mode dominates the market and is expected to develop at a CAGR of 12.8% over the projected period.

The B2B payments market is categorized based on Payment Method into ACH, Wire, Cheque, Cash, and others.

ACH method is predicted to increase at a CAGR of 10.4% during the projection period, making them an important segment.

The B2B payments market is split by industry vertical into manufacturing, IT and telecom, metals and mining, energy and utilities, BFSI, and other segments.

The manufacturing segment dominates the market and is estimated to increase at a CAGR of 12.3% over the projection period.

The B2B payments market is categorized based on enterprise size into major organizations, medium-sized enterprises, and small businesses.

The large industries dominate the sector and are anticipated to increase at a CAGR of 7.9% during the projection period.

Recent Developments

• May 2022 - OPay and Mastercard joined forces to promote financial inclusion in the Middle East and Africa by expanding digital commerce. In addition, Deutsche Bank has backed MarketFinance's initiative to lend USD 125 million to small businesses in the United Kingdom, and SmartCash Payment Service Bank is working to reach unbanked customers in Nigeria.
• February 2022 - South African FinTech company Lipa Payments brought its Tap to Pay service to Africa's "informal" sectors via its software platform, enabling businesses to accept contactless mobile payments. The company is prepared to roll out its digital payment system in Nigeria and South Africa. The Lipa platform enables banks and FinTechs to offer contactless phone-to-phone payments to consumers without requiring merchants to acquire POS hardware.