B2B Payments Statistics and Trends

The world of B2B payments is huge and always changing. It's worth a massive $240 trillion, way more than B2C. In 2022, a big 64% of companies said they made over half their B2B payments online. This shows a clear move towards digital payments.

The pandemic made companies realize they need to change how they pay each other. Many are now using automation and digital solutions to optimize their payment operations.

As businesses try to make things easier, it's key to know the latest B2B payment stats. This helps them keep up with new payment trends.

B2B Payments Statistics

B2B payments are rapidly shifting from traditional methods like checks to digital solutions, driven by the need for faster and more efficient financial transactions. 

The pandemic has further accelerated this shift, highlighting the importance of digital payments for business continuity. However, many companies still face challenges with late payments, cash flow issues, and manual processes.

Payment Operations:

• Only 5% of mid-sized companies have fully automated their AP and AR processes
• 49% of organizations adopted real-time payments in 2023, and this is expected to rise
• 76% of organizations experienced payment fraud, with checks being the primary target
• 81% of financial professionals believe faster payments will have a positive impact on their business​
• Commercial cards in B2B are growing by 30.19% between 2023 and 2028
• $54.2 trillion: Total value of B2B payments processed via ACH in 2023​
• B2B payment transactions exceeded 15 billion in 2024, with digital payments now making up 85% of transactions

Cross-Border Payments:

• 67% of total B2B payment volume is now from online payments
• 33% of B2B payments are still processed by checks, marking a decline from the past​
• 73% of international companies prioritize payment speed in cross-border transactions
• 88% of financial institutions are investing in new technologies, including AI and blockchain, to simplify cross-border payments
• Approximately 78% of businesses are concerned about exchange rate volatility impacting their cross-border payments
• Fintech platforms and non-bank entities are now handling nearly 50% of cross-border transactions for small and mid-sized enterprises (SMEs), driven by demand for more cost-effective solutions
• By 2025, over 80% of B2B cross-border payments will incorporate blockchain technology to improve transparency and security
• The average cost of cross-border B2B payments has declined by around 15% over the last three years, thanks to fintech innovations
• Real-time cross-border payments are increasingly favored, with a 20% yearly increase in adoption across the B2B sector
• B2B cross-border payments conducted through digital platforms are forecasted to surpass $3 trillion by 2025
• Multicurrency payments for B2B are growing at a rate of 25% per year as companies expand internationally
• Around 60% of businesses state that regulatory compliance in multiple regions remains a top challenge in cross-border payments
• Payment fraud in cross-border B2B transactions has increased by 18% due to more sophisticated attack vectors

AR Automation:

• 30% of revenue remains uncollected within 90 days due to delays in payment processes
• 52.6% of companies that fully automate AR processes report better data visibility
• Companies using AR automation saw a decrease in late payments from 28 to 23 days, leading to improved cash flow
• 84% of companies that implemented partial automation saw increased savings and efficiency​
• 80% of businesses that have automated invoicing report improved cash flow and faster payment collection
• AR automation is projected to grow to $6.5 billion by 2027, up from $3.3 billion in 2022
• AR automation can reduce DSO (Days Sales Outstanding) by 10-20% on average, accelerating cash flow
• Manual AR processes typically take 67% more time to manage overdue payments compared to automated processes
• Companies with automated AR processes have reduced errors by up to 85%, enhancing accuracy in financial records
• About 16% of AR teams still match payments manually, leaving room for digital transformation
• On average, implementing AR automation reduces the collection time for receivables by up to 30%
• AR automation helps companies cut payment cycle times by up to 25%
• The cost of handling manual AR processes averages $53.50 per invoice due to errors
• Real-time AR data visibility, provided by automation, has improved forecasting accuracy by 20%
• Companies using automated AR saw a 30% reduction in bad debt write-offs
• Automating AR helps organizations reduce manual follow-up efforts, leading to a 15% drop in overdue payments

Technology & AI in Payments:

• 94.7% of companies that fully automate payments report accurate, efficient, and streamlined processes
• AI-driven payment solutions are set to quadruple transaction volumes of real-time payments by 2026
• 57.9% of companies report easier compliance with financial regulations after adopting automation
• By 2028, virtual card transactions in the B2B sector are expected to reach $174.3 billion
• By 2025, B2B payment solutions that incorporate AI are projected to grow by 17% annually
• Incorporating AI for invoice processing and payment automation has reduced B2B payment processing times by 25%
• Automated B2B payment systems powered by AI have reduced the error rate in transaction processing by 30%
• AI-powered credit scoring models have increased payment approval rates for B2B transactions by 20%
• Incorporating machine learning algorithms into B2B payments has helped reduce fraud by 15%
• Digital wallets and virtual cards are expected to replace physical cards in 30% of B2B payments by 2026
• B2B payment innovations, like mobile wallets and virtual cards, are increasing payment speed by over 40%
• AI adoption in B2B payment systems is predicted to save businesses $2.6 billion annually by 2025

Cash Flow and Efficiency:

• 81% of CFOs report that automating payment operations has reduced payment delays and improved overall cash flow
• 28% of invoices are paid late by an average of 28 days, but automation can reduce this delay by 5 days
• Companies using virtual payments report 75% fewer payment delays and improved cash flow​
• B2B payments automation is expected to reduce operational costs by 80%
• 55% of companies say real-time payments improve cash flow management
• Cash flow forecasting becomes 30% more accurate with automation tools
• Automated payment solutions lead to a 50% reduction in invoice dispute resolution time​
• The average time to process an invoice can be reduced from 10 days to 3 days with automation​
• A 20% reduction in transaction costs is achievable through optimized B2B payment systems
• 45% of businesses are moving toward integrated cash flow management solutions

Fraud Prevention and Security:

• 39% of businesses experienced fraud attempts via wire transfers in 2020, but this dropped to 32% in 2021​
• 47% of ACH credits were the most vulnerable payment type for business email compromise (BEC) fraud, surpassing wire transfers at 39%
• 30% of organizations that experienced payments fraud in 2023 were unable to recover lost funds, highlighting the financial impact of such incidents.
• 56% of U.S. companies were affected by B2B payment fraud in 2022, with 12% targeted by more than 10 fraud attempts.
• Visa prevented 80 million fraudulent transactions worth $40 billion globally in 2023, reflecting the scale of fraud attempts.
• The cost of cybercrime worldwide is projected to reach $10.5 trillion by 2025, emphasizing the need for robust fraud prevention measures.
• 80% of financial institutions use AI and machine learning to detect and prevent fraud
• 67% of businesses report that payment fraud is a top concern for their companies
• The adoption of Payment Orchestration Platforms (POPs) has increased by 40% as businesses seek to consolidate fraud protection across multiple gateways
• 25% of fraud incidents involve the manipulation of merchant systems, highlighting the need for enhanced internal security protocols
• By 2025, the global fraud detection market is projected to reach over $30 billion, driven by increasing fraud risks in digital transactions​
• 46% of businesses report that they do not monitor fraud activity during post-purchase stages, leaving gaps in fraud detection
• 47% of merchants consider chargeback prevention a key area for improvement in their fraud management efforts
• 79% of businesses experience some form of online fraud, with e-commerce businesses being the most vulnerable
• 45% of businesses have faced a data breach directly tied to payment fraud
• 37% of businesses are deploying biometric authentication to prevent fraudulent payments
• 65% of businesses say that their fraud detection systems often miss fraud attempts before payment is made
• 23% of B2B companies have experienced financial losses exceeding $1 million due to payment fraud​

Conclusion

The B2B payments evolve rapidly as businesses increasingly shift to digital solutions. Traditional payment methods, like checks, are becoming less common as digital options gain popularity, driving greater efficiency in payment processing. Financial institutions are preparing for the integration of emerging payment technologies, with expectations that virtual card payments will continue to grow. The global B2B payments market is vast and expanding, with new trends set to reshape how transactions are conducted.

In light of these changes, businesses need to focus on adapting to evolving payment technologies and understanding customer preferences. Embracing these innovations will help businesses improve their operations and maintain a competitive edge in the market. Staying ahead of these trends is crucial to ensuring smoother, more efficient payment processes.

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