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The Future trends of Business to Business (B2B) Payment

Business-to-Business (B2B) payments have been improving to make faster transactions and enable businesses and companies to run smoothly as well as complete transactions on time. The implementation of artificial intelligence (A.I.), blockchain, and machine learning are coming in handy to meet this objective. These concepts are disrupting global B2B payments by optimizing as well as automating payment flows. In turn, the process promotes efficiency when carrying out transactions. 

Global B2B payments are being digitalized, enabling suppliers to make on-time deliveries of goods despite the geographical boundaries. According to the “Global B2B Payment Trends 2020” technology is disrupting B2B payments across the globe. Blockchain, specifically, is expected to benefit international payments between businesses. The key objective is to help enable massive cash transactions. According to the report, the analyst reports that it is looking to make a few trillion U.S. dollars in international transaction value by 2024. Increasing the number of transactions as well as the amounts involved in the transactions, boosts B2B businesses. 

A second innovation in the payment trends is real-time payments. According to surveys cited in the new publication, real-time payments are expected to boost B2B payments above all other segments. The ability to complete a transaction fast and the other party being able to confirm the transaction prevents the backdating of transactions. In addition, there is an up to date record of all transactions while at the same time eliminating all the paperwork. It allows both parties to make fast and clear verifications at any time, especially when businesses are looking to report profit/loss. With real-time payments, there is no intermediary who needs to process payments. Cases of delayed or misplaced payments will be unheard of because everything is completed online in one seating, and it will only take a few minutes. In no time, goods will be sent to the second party immediately. 

 Another trend noted in the report refers to the growing diversity of payment methods allowed by B2B businesses. Currently, checks and bank transfers remain to dominate as the larger payment volume between businesses. However, it is evident that other payment options came to the forefront in specific use cases as well as purchase channels. Evidently, there are channels that promote the use of digital methods as opposed to the traditional check and bank transfer methods. For example, payments made for digital subscriptions indicate that one-third of companies in Germany and France are likely to pay by E-Wallets. On the other hand, digital subscribers in the U.S., prefer the use of credit cards as the top method used by corporate buyers to pay for frequent online purchases. 

Incorporating technology into payment methods allow for diversity when completing transactions. In this, companies no longer have to make payments within the same platform. For example, companies can pay for goods even when they are not banking with the same bank as the supplier while at the same time retain a legit business relationship. Therefore, technological advancement eliminates restrictions from diverse payment options. 

What is included in the report?

The beginning of the report opens with a global chapter, which contains information on global B2B payment developments. These developments include data on the current size as well as projections for the B2B payments revenues market within the provided period. The chapter also focuses not only on the possible future trends but also on providing information on the previous trends on B2B payments. The ability to compare and contrast the trends will allow companies and businesses to make the right move when seeking to complete B2B transactions. 

In addition, market trends that include digital transformation and technological disruption are looked into detail in both quantitative and qualitative text and chart data. Also, the results provided through recent surveys of B2B buyers were cited. The goal of these citations is to reveal business customers’ expectations and demands with regard to payments.

Some regional chapters follow, which are ranked by B2B payments market size potential. In these chapters, the Asia-Pacific, North America, and Europe are looked into in detail for a better view of the provided analysis. In addition, it provides selected quantitative information for some of the major markets in the above regions, such as the USA, Canada, China, Japan, India, Australia, Germany, the UK, France, Italy, and Spain. The information was provided to exemplify the global trends in general for B2B payments as well as business-to-business E-Commerce payments. The type and scope of information provided in the different countries and regions varied. The variations were due to the data available. It is also intended to demonstrate the overall market developments as opposed to covering the specific geographies. 

The report highlights significant case studies in countries known to be giant players in B2B processes. These case studies show that technology is evident in disrupting the B2B payments across the globe and for a good reason. Statistics from companies such as HSBC Holdings PLC, MasterCard Inc., PayPal Inc., Visa Inc., as well as Wells Fargo & Co were included. The common factor in these companies other than providing similar services is that they also address global transactions. As major players in the industry, the information covers a more diverse market, thus providing a more accurate deduction. 

Therefore, it is evident that technology is not only disrupting B2B processes but that it is also disrupting B2B payments. Over the years, trends have been changing, and from the Global B2B Payment Trends 2020 report, the trends show a positive outcome in the long-term. The report is able to deduce the trend businesses will adopt over time. The advancement in technology is providing a better and more efficient means for businesses and companies to complete business transactions. The ability to understand the trends helps business owners to make the right decision to promote efficiency when making and receiving payment. In addition, cases of fraud and experiencing scams are reduced significantly. This is because B2B payments are not only real-time but also because both parties can clearly view a transaction status making it easy to verify any transaction. 

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