April 2, 2020

Will the fast pacing B2B Payment market be a winner takes all market?

By Patrick Chabannes

The innovative & confusing fast pacing B2B Payment markets arouses covetousness; software vendors development are powered by huge investments and fundings in a market that could reveal itself as a winner takes all market. 

The excellent Spend Matters proposed here in an analysis of this confusing & innovative world.

In 2018 Goldman Sach detected $1 trillion potential revenue in AP payment processing, working capital management, factoring and cross-border payment optimization. Several other analysts also point the large benefits that AP Automation & Payment will bring to companies & how large the market is for software vendors.

Spend Matters non-bank payment segmentation + solutions landscape
  • Majority of invoices are still processed manually and paid by check,
  • New payment companies are entering the market with faster and lowercost invoice processing and payment solutions,
  • The biggest revenue and costsavings opportunities are for small business, where they claim 80% of invoices are still manual and paid by check.

Any Order to cash, Source to Pay or Procure to Pay process owner have seen the large funding & large investment made by several Software vendors trying to capture the largest share possible of the attractive market of non-bank payment and software products as they are all thinking in petto: “Will this market will only be a winner takes all?”

2017 Global Payment revenus grew 11 percent, highest rate in the last 5 years

Spend Matters to conclude

In short, it’s a very confusing world, but one that is driven by innovation, infrastructure building and regulation. All of that, in turn, is making B2B payments faster, better, cheaper and more relevant — to look at as a primary S2P/P2P and O2C business lever — than ever before.”

Some litterature

“Please note that the Segmentation & solution graphic is not an exhaustive representation of the B2B payment solution space. Only an indicative list of providers in this initial version has been added, although there are likely a hundred more that could be added.”

Lectori salutem, AdC