Market analyst firm Frost & Sullivan is not only predicting that 2020 will see a $6.7 trillion B2B payments market in gross merchandise value, but it points to the over-sized rule that Alibaba is playing, with the Chinese E-Commerce giant personally contributing $27.28 billion to today’s B2B picture.
If the overall B2B trends continue, as Frost & Sullivan predicts, this will make B2B E-Commerce more than twice as big as what B2C E-Commerce is projected to be ($3.2 trillion) by then, according to a Forbes story.
The report also predicts sharp changes in the B2B technologies that will be favored.
“Most B2B models are moving away from legacy systems that involved the use of EDI (electronic data interchange), which were expensive and cumbersome to handle, toward ubiquitous and affordable online platforms where buyers and sellers can meet from anywhere in the world on the Web to transact goods and services, using only standard PC and Internet,” the story said. “This transition marks a move from the one-to-many model, where one company had to work with many suppliers using EDIs, to many-to-many, where organizations are integrating their processes with e-procurement companies and pure-play online B2B retailers to automate and facilitate the purchase of their goods online.”