Global markets continue to experience constant growth, including in B2B commerce, which is a significant area for innovation, particularly in emerging economies. Research indicates that by 2027, markets in Latin America, Africa, and the Asia-Pacific region will account for 40% of the total value of online B2B transactions globally.
Key Drivers of B2B Payment Growth
Emerging Market Potential
Regions like Latin America (this one with $944 billion, of reach by 2026), Africa, and Asia are experiencing a digital commerce surge, driven by a young, tech-savvy population and better internet access.
Digital Transformation
Businesses in these regions are rapidly adopting digital solutions to streamline operations and enhance efficiency. For instance, 64% of Brazilian businesses and 85% of Colombian businesses already engage in online B2B transactions, surpassing the global average of 50%.
Alternative Payment Methods
The shift towards local payment methods significantly improves transaction approval rates. EBANX reports that utilizing local payment options can surpass an 80% approval rate, highlighting the importance of catering to regional payment preferences.
Demographic Advantage
Emerging economies benefit from a young and growing population, contrasting with the aging populations of developed regions. This demographic shift is a critical factor driving digital adoption and economic growth.
Opportunities and Challenges
The potential for growth in B2B payments is substantial, yet approximately 70% of B2B transactions remain manual, indicating a significant opportunity for digitization. Payment strategies must balance traditional card payments with alternative methods, ensuring a seamless experience tailored to the unique needs of each market.
The Role of EBANX
EBANX, a leading fintech company, is at the forefront of this transformation. Their annual Beyond Borders survey provides valuable insights into the digital markets and payment trends in emerging economies. EBANX’s data underscores the importance of local payments in enhancing transaction success rates and facilitating the growth of digital commerce.
The future of B2B payments lies in the successful integration of digital solutions and the adoption of local payment methods. As businesses continue to navigate this evolving landscape, the potential for innovation and growth in B2B payments is immense, offering a promising avenue for economic development in emerging markets.
For businesses looking to capitalize on this trend, partnering with experts in digital transformation and payment solutions, like Digiu Digital, can provide the strategic advantage needed to thrive in this dynamic environment