Visa and Mastercard disrupt B2B payments with prepaid card expansion in 2023
The B2B payments industry has been growing rapidly over the last few years, and the trend is projected to further continue from the medium-term perspective. This has resulted in growing competition in the space, with many new firms entering the market with their innovative business models. In Europe, for instance, buy now pay later providers are turning their focus to the B2B segment. Over the last 12 months, the B2B BNPL scheme has gained popularity not only among businesses, but venture capitalists are also foreseeing strong growth opportunities in the sector.
Going forward, the B2B BNPL market is expected to gain momentum in other regions as well, threatening the growth of traditional payment models. One of the major reasons that the BNPL scheme is making quick rounds in the B2B sector is its ability to offer convenience and flexibility at a time when businesses are facing macroeconomic pressures. Rising inflation and a potential recession are expected to further aid the adoption of such B2B payment solutions among businesses of all sizes.