A study by Juniper Research has found the transaction value of business-to-business domestic payments across payment methods is expected to surpass $54trn in 2023.
The research examines B2B payment opportunities and forecasts from 2021 to 2026, and found that the need to automate B2B payments at scale is leading to a ‘fundamental shift’ in the way payments are made.
For example, Juniper forecasted that the volume of B2B domestic cheque payments will decline by 30% globally between 2021 and 2023, with cash payments falling by 11% over the same time period. Juniper added that the need to automate payments means a shift towards more easily automated payment types such as card and instant payments.
The research discovered that by 2023, global instant payment transaction volumes in the B2B domestic channel will climb by 56% – which would be the fastest on any single payment method. Meanwhile, it was also found that the launch of instant payment schemes that are able to carry additional remittance data as having significant potential for simplifying the complex B2B payments ecosystem.
Despite this, the research found an uneven state of instant payments scheme roll-outs was a critical limiting factor, as Europe is currently moving much faster than the North American market.
Another key finding by Juniper was that while many companies were now operating at pre-pandemic levels, the longer-term economic effects of the pandemic were still restricting value growth. The company stated that due to this, ‘leveraging payments automation to reduce manual work and boosting small business cashflow’ will be critical to recovery.
Research author Nick Maynard said, “The pandemic has accelerated the transition away from traditional payment types, with growth focused on instant payments and card payments. This transition will be important for automation, but will take some time, given the established nature of these processes.”
A recent study by PYMNTS projected that up to 80% of all business-to-business transactions could be conducted digitally by 2025.
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