Forum Key Insights

B2B payments – market sizing and evolving competition for B2E payment flows

  • Public Equity
  • Financials
  • North America

Third Bridge Forum recently spoke to a former senior executive at Automatic Data Processing to discuss the operating environment for B2B payments, as well as the competitive positioning across major card networks in the sector. Here are the need-to-know insights from that Interview:

  • The specialist said card networks, issuing banks and business software providers are increasingly competing for transaction fees from B2B and B2E payment flows, as well as exploring monetisation opportunities for underlying account balances. 
  • We heard that approximately 40% of the US population is considered unbanked or underbanked – representing the TAM for these payments. The specialist said applying an average USD 100-200 fee is the tangible revenue opportunity of this market.  

“Your winners are always going to be your largest, more established, trustworthy companies, Ceridian, Workday, ADP are always going to be the winners.”

  • The specialist told us that market segmentation is 30% non-bank bill-pay players, 30% earned wage access providers, 15% challenger banks, 10% payroll providers and 15% split between community, regional and national banks. 
  • Meanwhile, cross-border B2E payment flows still represent a significant obstacle for further monetisation. The specialist thinks the size and scale of the largest players provides the best opportunity to capitalise.

For more human insights on B2B payments, click on the transcript below.

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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