B2B money transfers ‘to hit $218 trillion by 2022’
Written by Chris Lemmon
Global cross-border B2B transactions are expected to exceed $218 trillion by 2022, up from $150 trillion this year, new research from Juniper has suggested.
This is being driven by the money transfer market being ripe for disruption, according to the study, as new technologies and regulatory changes are beginning to refine traditional banking practices. The FinTech sector is also helping to drive the increase, having a profound effect on traditional cross-border transactions.
The proportion of cross-border B2B transfer values facilitated by FinTech startups and disruptive technologies is expected to grow from 7.5 per cent in 2017 ($10.4 trillion), to 13.3 per cent ($29 trillion) by 2022.
Visa and Mastercard are also driving the market, according to Juniper, with both firms partnering with Fintech firms to make cross-border payments easier for business customers. Visa has signed a deal with Billtrust to provide virtual cards for B2B transactions, while Mastercard is working with Optal to offer virtual accounts to businesses.
Research author, Lauren Foye, explained: “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.”