APAC's B2B payments market shows promise in turbulent times
The business to business (B2B) payments market is increasingly prosperous in the APAC region, driven by growing adoption of eCommerce and financial technology solutions, according to Frost - Sullivan.
The analysts find that B2B payments revenue is estimated to double, reaching $1,356.28 billion by 2025. This is up from $671.32 billion in 2018 and represents a compound annual growth rate (CAGR) of 10.5%.
Country-wise, B2B payments in Indonesion represents the highest growth opportunities, with B2B eCommerce, B2B payment revenue in the area increasing at a CAGR of 54.2%. By comparison, in Vietnam, it is growing at a CAGR of 40.2%.
According to Frost - Sullivan industry analyst ICT Asia Pacific Dewi Rengganis, this reflects a larger trend of businesses increasingly embracing electronic payment forms and adopting alternative systems to create value-added services for their end customers.
Further, by utilising electronic payment forms, businesses can offer better customer experience and create new disruptive business models as well as new revenue streams, Rengganis says.
Rengganis says, "Strategic partnerships among key local and global industry participants have increased B2B payment adoption and promoted digital transformation across APAC.
"Additionally, with the increasing adoption rate of eInvoicing, the B2B payments market is gaining further momentum as a large number of enterprises are migrating towards eInvoicing instead of paper invoicing.
Top barriers and obstacles includes geopolitical risk, as cross-border B2B payments and security concerns hinder businesses looking to utilise digital payment methods.
However, already solutions are emerging that address such concerns. For instance, cryptocurrency can be a solution for cross-border payment and settlement by verifying the origin and authenticity of the product as it moves across the value chain, Frost - Sullivan states.
To minimise security risk, payment providers can enable customers to attain better feasibility of the transaction processesAs such, customers can identify potentially compromised transactions.
B2B payment solution providers should develop payment products that can address both working capital and cash flow challenges for SMEs, according to the analysts.
Frost - Sullivan states that B2B payment solution providers should collaborate with major card networks to offer virtual credit cards to enterprise customers.
The above is based on Frost - Sullivan's recent analysis offering, Growth Opportunities in the Asia-Pacific B2B Payments Market, Forecast to 2025.
The report includes analyses of trends within the B2B payments landscape, including market drivers and restraints, revenue forecast by payment type, country analysis, and market growth opportunities.
Frost - Sullivan focuses on understanding and offering analysis on mega trends, new business models and companies to enable enterprises to navigate changes and identify disruptive technologies to capitalise on growth opportunities.
