Researchers juxtaposed the statistic with global GDP valuation, which hit $77 trillion and is expected to rise 3% in 2018.
A focus on FinTech disruption and an opportunity among financial institutions to promote innovation combine to fuel growth in this market, Juniper Research said in its announcement.
“Whilst traditional banks still facilitate the vast bulk of B2B cross-border transactions, new technologies, such as virtual accounts, eInvoicing and blockchain technology, will aid in driving businesses to solutions which provide savings in time, efficiencies and transparency,” explained Lauren Foye, who authored the report.
FinTechs are expected to account for 13.3% of cross-border B2B transfer value by 2020, totaling $29 trillion, a nearly 6% increase from 2017 levels.
As FinTechs’ share of the market rises, analysts also noted an opportunity for traditional banks to benefit from industry growth. The report pointed to PSD2 in Europe, particularly, as a way for banks to partner with FinTechs to promote innovation, “lest institutions fall behind and see FinTechs ultimately outmaneuver them,” Juniper Research said.
Blockchain’s presence in cross-border B2B transactions is growing. Last year, separate data from Juniper found that corporate awareness of blockchain technology is on the rise, with 56 percent of firms with more than 20,000 employees either considering deploying, or having already deployed, blockchain tools (awareness among smaller businesses is lower, however).
Overall, more than 80% of survey respondents said they had at least “a little” understanding of blockchain technology, with about a third citing settlements and payments as the No. 1 area of the enterprise in which they might deploy blockchain technology.