Juniper Research forecasts B2B cross-border transactions to reach 14.8 billion by 2023
A study from Juniper Research has found that 14 billion B2B cross-border transactions will be processed by 2023; rising from 13.5 billion in 2019, a 7% increase. This will be driven by the introduction of blockchain-based payment networks.
According to the research, ‘B2B Money Transfer – Domestic & Cross-Border Market Opportunities 2019-2023’, international payments will become faster, cheaper and less complex; driven by network innovation. The digitalisation of cross-border payment networks, aligned with the use of cloud-based tools, APIs and blockchain, will enable the replacement of bilateral networks with multilateral models; improving efficiency and reducing costs.
Most international B2B transactions are still made via traditional, bilateral methods due to legacy infrastructure, which results in slow, non-traceable and expensive transactions. The lack of transparency inherent in these systems allows intermediate banks and non-banking institutions to charge high exchange rates and additional fees.
As blockchain affords complete traceability of transactions, its introduction would increase transparency, improve standardisation and reduce errors. The research recommended that payment network providers must invest in blockchain to ensure future competitiveness.