The volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, according to a new study from Juniper Research.
These vendors will account for 12.6% of B2B payments by volume in 2022. Despite the slow recovery elsewhere in the economy due to the pandemic, non-bank B2B payments will exceed 2019 volumes in 2021, underlining just how significant the migration from offline to online, and the need for greater efficiency, is helping non-traditional vendors.
It comes as economies recover from the pandemic, with a host of firms left assessing their operations to maximise efficiency. As such, banks and traditional money transfer operators face a reckoning, pressed by newer, more innovative players offering more cost-effective solutions.
Research author Nick Maynard stated: “Fintech vendors have risen to prominence by offering both greater efficiency and ease of use, calling into question the fundamental approach that banks take. Banks must turn to APIs for greater automation, as well as more competitive pricing, to retain some influence in this highly lucrative market.”
The research also detailed that automation will be crucial in fixing the challenges faced by businesses in their payment processes. This automation must be enabled using open APIs, which can radically simplify sharing data between different systems.
However, this automation will require a collaborative ecosystem to emerge, whereby B2B payments vendors integrate their systems with ERP and accounting packages, otherwise payment processes will remain highly manual and time-consuming.
For more insights, download the free whitepaper: 3 Key Trends Revolutionising B2B Payments.
