In the ever-evolving landscape of business-to-business (B2B) payments, staying informed about industry statistics is crucial for making informed decisions and staying competitive. In this blog post, we’ll delve into the latest trends and data surrounding the US B2B payments industry, providing valuable insights for businesses of all sizes. Let’s explore the key statistics shaping B2B payments in the United States and what they mean for the future of commerce.
The Latest Us B2B Payments Industry Statistics Explained
In 2020, the US B2B payments market was estimated at approximately $25.1 trillion.
The statistic stating that the US B2B payments market was estimated at approximately $25.1 trillion in 2020 is indicative of the substantial economic activity and monetary transactions occurring within the business-to-business sector in the United States during that year. This figure represents the total value of payments made between businesses for goods, services, and other transactions. The size of the B2B payments market reflects the significant scale of commerce and trade happening within the US economy, underscoring the importance of efficient and secure payment systems to facilitate these transactions smoothly and effectively. Additionally, this statistic provides valuable insights into the overall financial health and growth potential of the B2B sector, impacting various industries and contributing to the country’s economic development.
According to a Bottomline Technologies survey, 42% of businesses still use paper checks as their primary B2B payment method.
The statistic reveals that a substantial portion, 42%, of businesses continue to rely on paper checks as their main method of making business-to-business (B2B) payments. This suggests that despite the advancements in digital payment technologies, a significant number of businesses have not fully adopted electronic payment methods. The reliance on paper checks may indicate a preference for traditional payment processes, concerns around security and fraud with digital payments, or a lack of awareness or resources to transition to more modern payment methods. Understanding the prevalence of paper checks in B2B transactions can help organizations and policymakers develop strategies to promote the adoption of more efficient and secure digital payment solutions in the business world.
In 2019, 74% of businesses reported that they experienced payment fraud.
The statistic “In 2019, 74% of businesses reported that they experienced payment fraud” indicates that a significant majority of businesses encountered instances of fraudulent activities relating to payments within that year. This statistic highlights a concerning issue prevalent in the business landscape, with a large proportion of businesses being impacted by fraudulent transactions or activities. The high percentage suggests that payment fraud is a widespread threat that poses significant financial risks and challenges for organizations across various industries. It emphasizes the importance of implementing robust security measures and fraud detection mechanisms to safeguard businesses from potential financial losses and reputational damage associated with payment fraud.
PriceWaterhouseCooper research found that around 50% of B2B payments globally are still made through traditional methods like checks and cash.
The statistic presented by PriceWaterhouseCooper indicates that, despite technological advancements and the availability of digital payment methods, approximately half of the business-to-business (B2B) payments worldwide are still conducted using traditional methods such as checks and cash. This finding suggests that a significant portion of the business community has been slower in adopting digital payment solutions, which could potentially result in inefficiencies, delays, and increased costs associated with manual processing and reliance on physical forms of payment. The statistic underscores the importance of accelerating the adoption of modern payment technologies in the B2B sector to improve efficiency, transparency, and security in financial transactions.
A report from Mercator Advisory Group indicated that 29% of firms are planning to implement real-time payments in 2021.
The statistic from Mercator Advisory Group states that 29% of firms have indicated their intention to implement real-time payments in the year 2021. This signifies a significant trend towards adopting real-time payment systems among businesses. Real-time payments allow for instantaneous transfer of funds and can provide numerous benefits such as improved cash flow management, faster settlement of transactions, and increased efficiency in financial operations. The high percentage of firms planning to implement real-time payments highlights a growing recognition of the value and importance of embracing new payment technologies in order to stay competitive in the rapidly evolving digital financial landscape.
Between 2020 and 2025, the B2B payments market was projected to grow at an average annual rate of 10.1%.
The statistic indicates that between the years 2020 and 2025, the Business-to-Business (B2B) payments market was expected to experience significant growth. The projected average annual growth rate of 10.1% suggests a robust expansion in the market over the five-year period. This growth rate indicates that the B2B payments sector was anticipated to see substantial increases in transaction volume and value, driven by factors such as increasing digitalization, technological advancements, and evolving business practices. Overall, this statistic highlights a positive outlook for the B2B payments market and underscores the trend towards more efficient and streamlined payment processes in the business-to-business domain.
Deloitte describes that inefficiencies in the B2B payments sector result in businesses incurring around $150 billion in costs each year.
This statistic provided by Deloitte highlights the significant financial impact of inefficiencies within the Business-to-Business (B2B) payments sector. Specifically, it suggests that businesses incur approximately $150 billion in costs each year due to these inefficiencies. Such costs could include delays in processing payments, errors in transactions, high transaction fees, and other operational challenges that arise within the B2B payment ecosystem. This statistic underscores the importance of improving efficiency, transparency, and security in B2B payments to help businesses reduce unnecessary costs and streamline their financial operations.
Research from PayStream Advisors found that 39% of businesses plan to adopt e-payments in the next three years.
The statistic from PayStream Advisors stating that 39% of businesses plan to adopt e-payments in the next three years indicates a significant and increasing trend towards electronic payment methods among businesses. This finding suggests that more businesses are recognizing the advantages of e-payments, such as convenience, efficiency, and cost savings, prompting them to transition from traditional payment methods to digital transactions. The data implies that the adoption of e-payments is expected to continue to grow over the next few years, potentially transforming the payment landscape and highlighting the importance of businesses staying current with evolving financial technology.
Businesses in the US made approximately $22 billion via Electronic Data Interchange (EDI) in 2020.
The statistic stating that businesses in the US made approximately $22 billion via Electronic Data Interchange (EDI) in 2020 indicates the substantial economic activity facilitated by EDI technology for electronic transactions between businesses. EDI streamlines the exchange of structured business documents such as purchase orders and invoices, leading to improved efficiency, accuracy, and cost savings in business-to-business transactions. The $22 billion figure highlights the widespread adoption and integration of EDI in the US business landscape, showcasing its role in driving financial transactions and fostering seamless, automated communication among trading partners. This statistic underscores the significant role EDI plays in modern business operations and reflects the ongoing trend towards digital transformation in the commercial sector.
In a survey by Mastercard, 47% of small businesses reported difficulty in managing their inventory and payments due to a lack of digital solutions.
In a survey conducted by Mastercard, it was found that a notable 47% of small businesses face challenges in managing their inventory and payments due to a lack of digital solutions. This statistic highlights the importance of leveraging technology in streamlining business operations, specifically in inventory management and payment processing. The reliance on manual methods or outdated systems seems to hinder efficiency and effectiveness for nearly half of small businesses surveyed. Implementing digital solutions could potentially alleviate these difficulties and contribute to improved productivity and competitiveness in the business landscape.
The AFP reported in 2020 that only 42% of organizations reported fraud attempts on their payment operations.
The statistic reveals that in 2020, only 42% of organizations reported experiencing fraud attempts on their payment operations. This implies that a significant proportion of organizations were targeted by fraudulent activities, but a majority of them did not report these incidents. The statistic highlights the pervasive issue of fraud in payment operations and underscores the importance for organizations to be proactive in detecting and reporting such attempts to prevent financial losses and protect their assets. It also suggests that there may be underreporting of fraud incidents, indicating a potential need for increased awareness, better detection mechanisms, and stronger security measures to combat this threat effectively.
JPMorgan’s report indicates that less than 15% of B2B payments were made by check in 2020.
The statistic from JPMorgan’s report stating that less than 15% of B2B payments were made by check in 2020 indicates a significant shift away from traditional payment methods within the business-to-business (B2B) sector. This suggests that electronic and digital payment methods are becoming increasingly prevalent in B2B transactions, likely driven by factors such as efficiency, cost-effectiveness, and the need for remote payment capabilities. The decline in check payments highlights the ongoing digitalization trend within the business world, emphasizing the importance for businesses to adapt and modernize their payment processes to align with the changing landscape of financial transactions.
Payments totaling $27 trillion pass through the US B2B payments market annually, according to Aite Group.
The statistic stating that payments totaling $27 trillion pass through the US Business-to-Business (B2B) payments market annually, as reported by Aite Group, signifies the tremendous scale and economic significance of B2B transactions within the US economy. This hefty sum represents the financial volume of transactions between businesses for goods and services, showcasing the extensive flow of money within this sector. Such a high value underscores the critical role that B2B payments play in driving economic activity, fostering business growth, and facilitating trade relationships among companies. This statistic highlights the immense financial impact and vast scale of the B2B payments market in the United States.
NACHA reported that ACH payments grew by 8.9% in 2020.
The statistic ‘NACHA reported that ACH payments grew by 8.9% in 2020’ indicates that there was a substantial increase in the volume of Automated Clearing House (ACH) payments processed in the United States during that year. ACH payments are electronic transfers of funds between bank accounts and are commonly used for activities such as payroll deposits, bill payments, and online transactions. The growth rate of 8.9% suggests a significant expansion in the use of ACH payments, likely driven by factors such as the increasing adoption of digital payment methods, the shift towards remote work and online shopping due to the COVID-19 pandemic, and the convenience and efficiency of ACH transactions compared to traditional paper-based methods. This data underscores the ongoing trend towards electronic financial transactions and highlights the importance of digital payment infrastructure in the modern economy.
According to PYMNTS.com, 60% of companies believe that integrating payables and receivables would improve efficiency.
The statistic provided by PYMNTS.com suggests that a majority of companies, specifically 60%, believe that integrating their payables and receivables processes would lead to increased efficiency within their operations. This indicates that a significant portion of businesses recognize the potential benefits of streamlining and synchronizing their financial transactions, which could result in cost savings, reduced manual labor, faster processing times, and improved accuracy. By aligning their payables and receivables functions, companies may be able to enhance overall performance, optimize cash flow management, and ultimately achieve greater operational effectiveness in managing their financial activities.
McKinsey’s report states that digitization could help increase B2B payment revenues by $2 trillion by 2025.
The statistic from McKinsey’s report suggests that the implementation of digitization in business-to-business (B2B) payment processes has the potential to significantly boost revenue. By leveraging digital tools and technologies for transactions and financial activities between businesses, it is projected that B2B payment revenues could witness a substantial increase of $2 trillion by the year 2025. This estimate highlights the immense opportunities and benefits that digitization can bring to the B2B payment landscape, including improved efficiency, cost savings, faster processing times, reduced errors, and enhanced overall financial performance for businesses engaging in transactions with one another.
In Statista’s report, 66% of small businesses in the US reported late payments in 2020.
In Statista’s report, it was found that 66% of small businesses in the United States experienced late payments in the year 2020. This statistic indicates that a significant majority of small businesses faced challenges with delayed payments from their clients or customers, potentially leading to negative impacts on their cash flow and financial stability. Late payments can disrupt the operations and growth prospects of small businesses, affecting their ability to meet expenses, pay employees, and invest in future ventures. This statistic highlights the importance of addressing the issue of late payments to support the sustainability and success of small businesses in the US.
The Federal Reserve reports that the median cost of handling a noncash payment for large businesses is $3.
The statistic provided by the Federal Reserve states that the median cost of processing a noncash payment for large businesses is $3. This figure likely represents the typical or middle value of the cost incurred by large businesses when they process a noncash payment, such as credit card transactions or electronic transfers. Understanding the median cost is important as it provides insight into the typical expenses that businesses face when handling noncash transactions, helping them to manage their operational costs effectively. The $3 median cost may reflect various factors such as transaction fees, technology infrastructure, staff training, and security measures required to process noncash payments efficiently. Businesses can use this statistic to benchmark their own costs and identify opportunities for cost savings or efficiency improvements in their payment processing operations.
Conclusion
B2B payments industry statistics provide valuable insights into the trends and challenges faced by businesses in the United States. By analyzing this data, companies can make informed decisions to optimize their payment processes and improve efficiency. Keeping abreast of the latest industry statistics is essential for staying competitive and meeting the evolving needs of B2B customers.
References
0. – https://www.www.mastercard.com
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2. – https://www.aitegroup.com
3. – https://www.www.mckinsey.com
4. – https://www.www.mercatoradvisorygroup.com
5. – https://www.www.jpmorgan.com
6. – https://www.www.statista.com
7. – https://www.www2.deloitte.com
8. – https://www.bottomline.com
9. – https://www.www.federalreserve.gov
10. – https://www.www.globenewswire.com
11. – https://www.www.nacha.org
12. – https://www.www.pymnts.com
13. – https://www.www.afponline.org
14. – https://www.www.marketdataforecast.com
15. – https://www.www.edibasics.com
16. – https://www.www.pwccn.com
