HAMPSHIRE, U.K.–A new study from Juniper Research is predicting the global spend on B2B cross-border payments will exceed $40 trillion by the end of 2024, up from $37 trillion in 2022.
This growth of $3 trillion (9%) will be driven by the rising popularity of eCommerce marketplaces, where eCommerce merchants are based in international locations, and selling goods internationally via locally based eCommerce services, according to Juniper.
The company defines any cross-border B2B payment is any payment between businesses for goods or services made internationally; irrespective of the different payment methods involved.
“Cross-border transactions have typically been slow, expensive and difficult to track, a problem that has been exacerbated by the complex accounts payable processes common with larger enterprises,” Juniper said in releasing its forecast. “However, the rise of cross-border instant payments, where payments are transacted in 10 seconds or under, is significantly improving this difficult situation. Currently, instant payments are restricted to certain cross-border destinations.”
Links Being Established
Added research co-author Nick Maynard, “While cross-border instant payments are not yet widespread, only accounting for 8% of cross-border transactions by value globally in 2024, significant progress is being made in linking up national instant payment schemes. This can unlock substantial improvements for B2B transactions. B2B payment vendors must be driving further integration of the instant payment rails they support on a national level to solve the difficult challenges with legacy payment channels.”
Promise & Challenges
According to Juniper, the research found the marketplace model within eCommerce is driving growth within both cross-border B2B payments and the eCommerce payments market.
“However, given the marketplace model involves multiple different vendors, all paying each other at different times in different ways, this creates considerable complexity and difficulties in reconciliation, FX (Foreign Exchange) and fraud prevention,” Juniper said.
As such, the report recommends that B2B payment vendors offer features such as integrated virtual cards and virtual IBANs (International Bank Account Numbers) for local payments, to correctly address these challenges.
Still Free in ’23! The Freshest CU Headlines. Right to Your Inbox.
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com