B2B Payments

B2B eCommerce Is Shaping China’s Payments Landscape


Consumer payments technology is under a spotlight. But the B2B eCommerce arena is often viewed as the unsung hero of innovation. Now, there are some stats to back that claim up — at least in China.

According to reports on Tuesday (Dec. 22), B2B eCommerce is a major driver behind online and electronic payments development in China. The conclusion was reached by iResearch, which released a new study to examine the nation’s eCommerce industry.

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The data revealed that a significant increase in B2B eCommerce gross merchant volume (GMV) in the year’s second quarter coincided with a significant increase in third-party online payment gross merchant volume.

That third-party online payment GMV hit 2.81 trillion yuan in the quarter (about $430 billion), representing a growth rate of 15.7 percent quarter over quarter, reports said. While online shopping accounted for a quarter of online payments in the quarter, B2B eCommerce contributed to 6 percent of the volume.

The statistics, however, pointed to a small decline in B2B eCommerce GMV due to a decline in import/export value for China in the first half of 2015, the statistics revealed.

The year’s first quarter also saw a slight decline in B2B eCommerce. China Internet Watch released figures earlier in 2015 that found a 1.6 percent decline in the quarterly value of B2B online purchases compared to the quarter before. Analysts noted that, overall, the B2B eCommerce sector remains on a steadily increasing track.

Last year, data suggested that China’s eCommerce industry reached a valuation of nearly $2 trillion for 2014.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.