HAMPSHIRE, UK – Companies are increasingly embracing blockchain’s native capabilities for cross-border deals – with business-to-business (B2B) transactions expected to hit 14 billion by 2023, according to a new study from Juniper Research.

That’s up from 13.5 billion in 2019 – a 7 percent spike.

“The digitalization 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,” the report said.

For the record, blockchain is an emerging technology that enables a digital currency to be transmitted across a decentralized network where transactions are recorded on an immutable blockchain ledger.

Digital currencies range from a “stable coin” backed by traditional fiat money, or a new asset class like bitcoin or Ethereum, enabling new sources of liquidity.

Money Corp tops provider’s list

Juniper Research assessed 12 non-banking payment providers, comparing their “product features, breadth of solutions and revenues, as well as overall network strength.”

Here’s the top five leading B2B payment vendors:

  1. Money Corp
  2. TorFX
  3. TransferMate
  4. OFX
  5. Currencies Direct

According to the research, Money Corp offers “comprehensive platform functionalities, including specific solutions for eight different industries. TorFX offers a broad range of foreign exchange services, marketing insights and the innovative scheduling of regular overseas payments. Third-ranked TransferMate supports transactions in an impressive 134 currencies.”


Innovation replaces traditional methods

To date, most international B2B transactions are still made via traditional, bilateral methods due to legacy infrastructure.

The result: often slow, non-traceable and expensive transactions. The lack of transparency inherent in these systems also 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 report noted. The research recommended that payment network providers invest in blockchain to ensure future competitiveness.

“Future growth in B2B cross-border transactions will be driven by innovative corporate payment solutions that make transparency central to their models, following the example set by disruptive vendors in the consumer money transfer market,” research author Maite Bezerra was quoted as saying.