The Global B2B Payment Landscape

Today's Landscape; Tomorrow's Opportunity

As the financial world becomes more and more digital-focused, it is surprising that the demand for real-time B2B international payments is still not being met. This is despite cross border transactions costing businesses thousands in transaction fees, delayed payments, and high FX rates.

Our recent research showed that with limited time to investigate other options, and a lack of resource to implement a new solution, businesses are continuing to pay high fees, with poor exchange rates for a slow cross border money transfer service. 

In a world where international trade is increasing by the day, this could seriously impact a company's ability to provide a competitive and effective solution.

Global trade flows reached $26 trillion in 2012 - and flows could triple from 2014 to 2024. 

Improving the B2B cross border payments landscape will be crucial to meet this growing demand

Although the B2C and P2P payments industry has enjoyed fast-paced progression and growth when it comes to cross border B2B payments, businesses continue to accept the status quo when dealing with international payments.

While the ways in which PSPs, acquirers, issuers and merchants conduct their international B2B payments does vary, there is a shared consensus that time and resource is lacking, painting an all too familiar story in the challenges they face.

The B2B money transfer sector is estimated to be 10 times larger than B2C

The payments landscape is continuously evolving; however, every new opportunity brings new challenges. Businesses looking to implement a more efficient payment strategy in terms of timescale and cost will need to work hard to overcome the barriers of global trading to be able to seize the opportunities available.

This will involve a substantial shift of priorities in favour of the payments process, which for many businesses, is something that is often overlooked. 

The B2B payments market is estimated to be three to four times larger in dollar volume than the B2C market

But it doesn't have to be this way. 

For businesses relying on the sale of goods and services across borders, securing the best payment solution is highly beneficial in terms of remaining competitive, providing the best customer service, and earning a profit.

New players are primed to innovate in the international B2B landscape - and the majority of businesses would consider using them, citing improved transaction speed and lower costs as major factors. 

Banking Circle® provides a faster and more cost-effective way for businesses to make and receive international payments

By joining Banking Circle – which is open to any financial tech business or other tech related enterprise – a business can provide bank transfer capabilities in its own name, competing directly with the banks in terms of offering the ability for merchants to pay suppliers and partners around the globe at a significantly lower cost. 

Banking Circle members can extend their value chain to also include the ability to handle cross border bank transfers for their customers. 

Merchants can also benefit by joining Banking Circle. Merchant Members can reduce the cost of international payments, sending and receiving transfers instantly and without incurring a landing fee to a recipient within the Banking Circle – no matter where they are in the world.

In addition to this, any payments made to non-members of the Banking Circle can be made at low cost, typically enabling the non-member to receive payment in one day, irrespective of their location.

Banking Circle provides the FinTech industry with faster, lower cost global banking. 

As members of the Banking Circle, payment solution providers, foreign exchange payment providers and acquirers can offer own-branded global banking services to their merchants – enabling them to perform immediate cross-border bank transfers and set up local settlement accounts worldwide for their customers at very low cost.

Download the full white paper 'Cross Border Payments: Today's Landscape; Tomorrow's Opportunity