Fintech Innovation Propels B2B Money Transfer Market to $228 Trillion By 2022, According to Juniper Research
New findings from Juniper Research have concluded that the cross-border B2B money transfer market is ripe for disruption, as new technologies and legislative changes redefine traditional banking practices across the globe.
Cross-border B2B transactions will exceed $218 trillion by 2022, up from $150 trillion this year. In comparison, global GDP was placed at just $77 trillion last year, rising by 3 percent in 2018.
A new report from Jupiter Research "B2B Money Transfer: Cross-border Market Opportunities 2018-2022", found that Fintech was having a profoundly disruptive effect on traditional cross-border B2B transactions.
“Whilst traditional banks still facilitate the vast bulk of B2B cross-border transactions, new technologies, such as virtual accounts, eInvoicing, and blockchain technology will aid in driving businesses to solutions which provide savings in time, efficiencies, and transparency, said Research Author Lauren Foye explained.
The proportion of cross-border B2B transfer values facilitated by newer Fintech start-ups and disruptive technologies, will grow from 7.5 percent in 2017; equating to $10.4 trillion. The projected growth of 13.3 percent by 2022 equals $29 trillion. This will occur as more businesses utilize these efficient and transparent methods in a notoriously cloudy industry.
Juniper identifies payment facilitators Visa and Mastercard as beacons in this space. Visa has partnered with fintech start-up ‘Billtrust’ to provide virtual cards for B2B transactions, as well as offering its own ‘Visa B2B Connect’ service which utilises Chain Core, an enterprise blockchain solution. Likewise, Mastercard is working with Optal, to offer virtual accounts to businesses.
Juniper believes that banks are well placed to benefit from the opportunity posed in B2B transfers. For instance, legislative changes such as PSD2 in Europe, serve as a perfect opportunity to partner with Fintechs to deliver innovative services to companies; lest institutions fall behind and see Fintechs ultimately out maneuver them.
Meanwhile, proactive banks will seek to implement blockchain technology; with Ripple now hosting more than 100 banks on its network.
(For more information visit https://www.juniperresearch.com).