2023 B2B Payment Trends: Anticipated Continued Expansion in Business Transactions
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In the dynamic world of business-to-business (B2B) payments, consolidation has been a prominent trend in 2023. Several key acquisitions have reshaped the industry landscape, as established players merge with fintech innovators to create comprehensive, integrated solutions.
One of the significant acquisitions this year was Nexi's purchase of Spanish player Paycomet. This move expanded Nexi's reach and strengthened its position in the European market.
Another notable deal was Nuvei's acquisition of Till Payments. The terms of the agreement are yet to be disclosed, but the acquisition is expected to bolster Nuvei's capabilities in the payments industry.
The IPO market for cross-border B2B payments has been quiet in 2023, with only one company, CAB Payments, going public. However, the acquisition market has been bustling, with companies like Fortis, Fifth Third Bank, Deluxe, Truckstop.com, and others making strategic moves to consolidate their positions.
Fortis' acquisition of Serve First Solutions expanded its offerings in embedded B2B payments technology, particularly serving software platforms and enterprise resource planning (ERP) systems with multichannel payment workflows. This deal deepens Fortis’ vertical expertise and accelerates growth by combining technology and enhanced distribution and service models.
Fifth Third Bank's acquisition of DTS Connex boosts its commercial payments business, focusing on automating cash logistics and enhancing data sharing. This move exemplifies how regional banks leverage fintech to innovate in B2B payments and build integrated, tech-driven ecosystems.
Deluxe's acquisition of CheckMatch from Kinexys by J.P. Morgan strengthens Deluxe’s digital lockbox payments capabilities by integrating CheckMatch’s blockchain-based digital check delivery service into the Deluxe Payment Network. The aim is to create the largest digital lockbox network, improving scale, security, and efficiency in B2B payments, especially for large enterprises and financial institutions.
Truckstop.com's acquisition of Denim, though not a traditional payment processor, allows the company to expand its role in supply chain finance, contributing to fintech integration in B2B commerce.
These acquisitions contribute to consolidation by integrating technologies into broader platforms, expanding product portfolios and vertical market expertise, building ecosystems that blend traditional banking with fintech tools, and driving scale and operational efficiencies.
The cross-border B2B payments industry remains highly fragmented, providing numerous acquisition opportunities for companies with available credit. For instance, Corpay, the B2B payments arm of public company Fleetcor, is considering acquiring a company to merge with the brand, as part of a move to make it a standalone organization.
OFX, a provider of international money transfer services, acquired Paytron in 2023, following its 2022 acquisition of Firma. These moves have provided OFX with additional geographical capabilities and stronger business capabilities.
Equals, a global payments provider, acquired Belgium-based Oonex in 2023. Paynetics, another global payments company, acquired Phyre to bolster its embedded finance proposition.
The trend of acquisitions in the B2B payments industry may continue as an alternative to other means of company restructuring. American Express acquired Nipendo to help build out its end-to-end B2B payments platform in 2023.
The trend of consolidation in the cross-border B2B payments industry has been ongoing for a multi-year period. As the industry continues to evolve, we can expect to see more strategic acquisitions that reshape the landscape and drive innovation in B2B payments.
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