How much is digital driving growth in the cross-border payment B2B services market?
Last week we published an extensive report on the size of the cross-border payments market, which showed that while the non-wholesale total addressable market (TAM) was $39.9tn in 2024, it is set to reach $64.5tn in 2032. However, one detail of particular note was our data on the digital share of the B2B services market, which tells an interesting story about the development of the services TAM over the next few years.
Covering small and medium-sized business (SMB) and large enterprise cross-border payments, the services market accounted for 24.6% of all B2B cross-border payments volume in 2024, but is set to see this share rise to 25.9% in 2032. However, within this, digital services are set to be a key driver of growth.
In 2024, $3.9tn of services’ $7.8tn TAM – 50.3% – was digitally delivered, which represents a nine percentage point increase on its 2016 share. However, we forecast this to grow to 56.8% by 2032.
Digitally delivered services are set to see a higher rate of growth than their non-digital counterparts, with a CAGR between 2024 and 2032 of 8.3%, compared to non-digital’s 4.8%. Digital services have also seen fairly consistent growth throughout the last few years, including during the pandemic, in contrast to a steep short-term decline in non-digital services at the peak of Covid-19.
Advances in technologies such as AI are creating new digital B2B services, while businesses of all sizes are increasingly turning to tools to enhance worker productivity as opposed to engaging in significant further hiring. This is creating significant international demand for digital services, while their lack of physical delivery removes geographical constraints, increasing their cross-border use and appeal.
Read our full report on the size of the cross-border payments market
