Japan B2B Payment Services Voice of Customer, 2021
Japan B2B Payment Services Voice of Customer, 2021
Emerging Technology Adoption and Strategic Partnerships Set to Unlock Growth Opportunities
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The Japanese government encourages a shift toward cashless through initiatives such as the tax rebate program and open banking law reform. As the proportion of customers using cashless transactions rises, businesses increasingly seek solutions to complement their B2B2C needs. A staggering 55% and 70% of companies received payments today are from consumers and SMEs, respectively. B2B2C payments needs are driving B2B payment solutions development, while demand for B2B solutions alone is far lower.
Frost & Sullivan studied 101 businesses in Japan between January and February 2021 to assess the current state of the industry and uncover actionable insights to drive digital B2B payment services in Japan. The study found that the digital B2B payments transaction value looks set to register a 3.3% compound annual growth rate (CAGR) from 2021 to 2026. There is room for improvement for financial services providers serving the B2B space, particularly in fees, as 69% of companies surveyed think that the current fees are too high. About one-third of polled companies feel that transaction fees for local and international transactions should be lower. Besides fees, companies’ ability to cope with fluctuations in payment volumes and cash flow problems are key issues that need to be addressed.
Market developments point to the untapped potential beyond digitizing businesses. Harvesting the opportunity with industry digitalization is often matched with the adoption of emerging technologies, such as artificial intelligence (AI), Big Data, robotic process automation (RPA), and cloud. Whereas digitization can lead to automation of the payment process, digitalization is much more than that and can lead to more efficient and effective use of resources. It can facilitate more advanced functionality, including dynamic payment routing that can solve customer pain points.
In Japan, business potential does not always translate into business success. Size does matter. The reality on the ground is that despite the need, Japanese companies are in no rush to embrace change. Nevertheless, change is on the horizon as business needs challenge the inertia resisting change. Already, we see partnerships providing added value and businesses getting the benefits. The momentum is building, with credit card market participants establishing a comprehensive B2B payments ecosystem through partnerships with accounting services, transportation services, and office supplies providers.
This study covers Japan. This report’s target audience includes financial services providers and payment services providers keen on understanding the financial services needs of business customers in Japan.
Author: Mei Lee Quah
RESEARCH: INFOGRAPHICThis infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Japan B2B Payments Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Survey Objectives and Methodology
Key Questions this Survey Answers
Japan B2B Payments Market Outlook to 2026
Japan B2B Payments Market Outlook to 2026 (continued)
Summary of Japan B2B Payment Trends
Overview of Japan B2B Payments Value Chain Opportunities
Japan B2B Payments Value Chain by Service Type
Overview of Japan B2B Payments Flow Solutions
Japan B2B Payments Flow Solutions for Factoring
Japan B2B Payments Flow Solutions for Receiving Payments
Japan B2B Payments Flow Solutions for Making Payments and Enabling Suppliers
Japan B2B Payments Flow Solutions for Payment Analytics and Accounts Automation
Japan B2B Payments Transaction Value Forecast
Japan B2B Payments Transaction Value Forecast Analysis
Japan B2B Payments Transaction Value Forecast—Credit Cards
Japan B2B Payments Transaction Value Forecast Analysis—Credit Cards
Japan B2B Payments Transaction Value Forecast—Bank Transfers
Japan B2B Payments Transaction Value Forecast Analysis—Bank Transfers
Market Penetration Timeline—Participants’ Strategic Approaches, 2017–2020
Market Penetration Timeline—Key Findings
Competitive Analysis Based on Number of Customers and Annual Revenue
Annual Profit Margin
Composition of Payment Receivers and Senders
Incoming and Outgoing Transactions by Focus Industry
Types of Financial Services Currently Used
Types of Financial Services Currently Used by Focus Industry
Top 2 Financial Services Providers by Type of Services
Current Practices in Payments, Bulk Payments, and Accounts Reconciliation Strategy
Average Accounts Payable Terms by Focus Industry
Average Accounts Receivable Terms by Focus Industry
Issues with Current Payment Practices and Unfulfilled Needs to Be Addressed
Satisfaction Level with Current Financial Services Providers
Growth Opportunity 1: Strategic Partnerships for Digital B2B Payments Solutions Development
Growth Opportunity 1: Strategic Partnerships for Digital B2B Payments Solutions Development (continued)
Growth Opportunity 2: Technology Adoption for Digital B2B Payment Solutions Enhancement
Growth Opportunity 2: Technology Adoption for Digital B2B Payment Solutions Enhancement (continued)
Conclusions and Recommendations
Three Big Predictions
List of Exhibits
List of Exhibits (continued)
|Author||Mei Lee Quah|