The world economy isn’t just growing larger collectively—it’s growing more interconnected. An American company can do business with a German contractor, who also does work for a company in the Philippines, who sources product from Brazil—and so on. International payments are what enable these relationships, and they’re what make the global economy go round.
To understand how large this segment of the world economy is, it’s important to look at the global payables landscape. It’s a $950 billion industry that’s only growing larger with each passing transaction across borders. Here’s a breakdown of global payables and the scope of companies facilitating them.
$290B in cross-border payments
The largest market segment of international payments focuses on cross-border payments. These are companies that enable funds transfer across different currencies and allow companies to seamlessly execute payments to partners and payees across the globe. Cross-border enablement is increasingly more important in a global economy that’s becoming more interconnected with each passing year.
Within this segment of cross-border payments you’ll find plenty of service-specific operators. For example, Veem focuses on offering a complete cross-border payment system, complete with digital wallets and transparent exchange rates and fees.
$270B in working capital
Working capital providers allow businesses access to funds outside of traditional bank loans and lines of credit. Moreover, it affords them opportunities to streamline how they pay and get paid through third-party apps and mediums. This segment of the global payables market is also growing in importance because it focuses on enablement. Companies need to send and receive money, and they’re looking for the most efficient ways to do it. Working capital apps and platforms bridge that gap.
$160B in payment processing
Payment processing isn’t a new concept, but it’s certainly a booming one thanks to the rise of ecommerce. As the marketplace moves increasingly digital, operators need ways to accept payment from individuals around the world—no matter how they choose to pay. Whether it’s via credit card, local currency, cryptocurrency or funds transfer, payment processing is a growing segment of the global fintech market because of sheer demand. Payment processing is a nuanced service, which means the market is rife with opportunities to handle the exchange of funds across borders and in different areas of the world.
$130B in software and services
The rise of software-as-a-service (SaaS) companies and cloud-based platforms is an integral part in facilitating global payments. Companies need reliable infrastructure to execute and process payments through, which means turning to companies outside of the traditional SWIFT system. From digital wallets to exchange rate lookups, currency converters to invoice capture, there are a slew of services that fit within the realm of global payments. The ability of companies to access these services is what primes global payments and makes them easier to execute.
$100B in disbursements
The world of global payments demands intermediaries. This means source-to-pay (S2P) and procure-to-pay (P2P) partners, as well as companies with the ability to execute disbursements to expedite the transfer of funds. Companies facilitating these services are growing at a fast pace, and more comprehensive services are incorporating disbursement capabilities to provide businesses with a more rounded service offering.
The future of global payments
According to the Goldman Sachs report these figures are from, global payments will top $200 trillion in funds transfer by 2028. The cost of sending those funds amounts to $2.7 trillion. But, thanks to the evolving landscape of global payment providers, there’s opportunity to cut these costs by as much as 75%. As the opportunities for sending and receiving digital payments continue to evolve, the cost of doing business on a global scale will continue to drop. More important, the sophistication of transferring funds around the world will only increase as software and services become more refined and accessible.
The growing global payables landscape
A roughly a trillion dollars, the global payments market is only going to grow in the coming decade—especially as technologies like Veem make it easier and more affordable to pay contractors, partners, companies, vendors and anyone else, no matter where they live.
As you find yourself contributing to the global payables landscape, ask yourself if you’re moving money in the most efficient way possible. Like all markets, this is one that’ll continue to gain competitors. It’s important to make sure you’re using the best possible service to move money across borders, into the digital wallets of those who need it. Explore Veem today to bring affordability, transparency and simplicity to global payments.