B2B Payment Trends 2024: Checks, Cards, Cross-Borders

Get ready for a B2B payments revolution!

In 2024 and beyond, expect a whirlwind of innovations, tech waves, and the farewell to outdated channels.

Let's uncover the top four trends shaping the future of the B2B payment scene!

B2B Payments Market Size to Grow by 10.1% ??

The B2B payments arena is set to expand significantly, with a projected Compound Annual Growth Rate (CAGR) of 10.1% from 2022 to 2030, culminating in a staggering $2,146.70 billion market size by 2030.

This growth will be fueled by the global surge in trade, increased digitization, and automation of B2B payment systems, bolstered by governmental initiatives like FedNow.

Navigating the Future: B2B Payment Market Trends 2024 ??

Here’s a quick look at four key trends influencing B2B payments in 2024.

For the full report, click here.

1.? ??Enhanced Cross-Border Payment Solutions ??

The challenges of cross-border transactions, such as multiple intermediaries and lengthy processing times, have prompted dissatisfaction among businesses.?

?A remarkable 88% of financial institutions are planning to embrace new technologies to address these challenges.

Collaborative partnerships between card companies, payment processors, and banks are expected to streamline cross-border transactions. The adoption of ISO 20022 standards and AI will also enable real-time data in payment systems.

2.? ??Increased Use of Virtual Cards ??

B2B payments are mirroring B2C trends, with virtual cards gaining traction for their secure and controlled features.

Valued at $281 billion in 2021, the virtual cards market is expected to reach $1,983 billion by 2031, witnessing a 21% CAGR.

Initiatives by major players like MasterCard, Visa, and American Express seek to enhance virtual card technology, making them integral for business travel, supplier payments, and entertainment purposes.

3.? ??The Decline of Checks ??

The era of checks for B2B payments is waning, and some economists predict their obsolescence by 2024. Digital payment trends, offering simplicity, speed, and security, are rapidly displacing traditional checks.

On average, check usage has dropped by 8% every three years. The drop is likely to get sharper as more payment options open up for businesses.

4.? ??FedNow to Catalyze B2B Payment Innovations ??

The introduction of FedNow, the Federal Reserve's real-time payment service, has not only expanded instant payment options but also paved the way for innovative B2B payment solutions.

Companies like Orum are leveraging the FedNow platform to create products like Verify, streamlining processes such as instant bank account verification before payment transfers.

Conclusion ??

As we navigate the B2B payment landscape in 2024, the convergence of user experience (UX), the integration of AI and ML, and the rise of innovative industry-specific payment solutions will play pivotal roles in shaping the future of B2B payments.

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