Consumer-to-business (C2B) is a business model in which consumers (individuals) create value and businesses consume that value. For example, when a consumer writes reviews or when a consumer gives a useful idea for new product development then that consumer is creating value for the business if the business adopts the input. In the C2B model, a reverse auction or demand collection model, enables buyers to name or demand their own price, which is often binding, for a specific good or service. Inside of a consumer to business market the roles involved in the transaction must be established and the consumer must offer something of value to the business.
Cross-border consumer-to-business (C2B) payments are transactions where an individual in one country pays a business in another country. These payments underpin global digital commerce by enabling consumers to purchase goods and services from international merchants. In emerging markets, support for local payment methods (LPMs) – such as domestic e-wallets, local card networks, bank transfers, and mobile money – is crucial. Many consumers in these regions do not have international credit cards or prefer familiar local payment options. As of 2024, over half of transactions in emerging economies are still cash-based and about 60% use payment methods other than credit cards.
Another form of C2B is the electronic commerce business model in which consumers can offer products and services to companies, and the companies pay the consumers. This business model is a complete reversal of the traditional business model in which companies offer goods and services to consumers (business-to-consumer = B2C). We can see the C2B model at work in blogs or internet forums in which the author offers a link back to an online business thereby facilitating the purchase of a product (like a book on Amazon.com), for which the author might receive affiliate revenues from a successful sale. Elance was the first C2B model e-commerce site. This makes LPM integration vital for reaching customers and facilitating financial inclusion in digital commerce.
Local payment methods provide a trusted and convenient way for consumers to pay online, often through mobile wallets, instant bank payments, or voucher systems. By offering LPMs at checkout, international businesses can improve user experience and conversion rates. Analysts note that tailoring to local preferences is essential – if global merchants fail to offer the payment options popular in a given country, they risk losing an entire segment of customers. Thus, cross-border C2B payment providers specialize in bridging global merchants to these local systems, ensuring consumers can pay in their preferred way while merchants receive funds seamlessly across borders.
Overview C2B is a kind of economic relationship that is qualified as an inverted business type. The advent of the C2B scheme is due to:
The internet connecting large groups of people to a bidirectional network; the large traditional media outlets are one-directional relationships whereas the internet is bidirectional. Decreasing costs of technology; individuals now have access to technologies that were once only available to large companies (digital printing and acquisition technology, high-performance computers, and powerful software).
Positives and negatives Nowadays people have smartphones or connect to the internet through personal tablets/computers daily allowing consumers to engage with brands online. According to Katherine Arline, in traditional consumer-to-business models companies would promote goods and services to consumers, but a shift has occurred to allow consumers to be the driving force behind a transaction. To the consumers benefit, reverse auctions occur in consumer to business markets allowing the consumer to name their price for a product or service. A consumer can also provide value to a business by offering to promote a business products on a consumers blog or social media platforms. Businesses are provided value through their consumers and vice versa. Businesses gain in C2B from the consumers willingness to negotiate price, contribute data, or market to the company. Consumers profit from direct payment of the reduced-price goods and services and the flexibility of the transaction the C2B market created. Consumer to business markets have their downfall as well. C2B is still a relatively new business practice and has not been fully studied.
One weakness of the consumer-business model is that consumer information and privacy could be compromised. For example, businesses might choose to secretly analyze consumer spending by using sensitive information such as purchase history, age, race, location, etc.
Distinguishing between traditional business models Consumer to business is an up and coming business market that can be utilized as a company's entire business model or added to an already existing model. Consumer to business (C2B) is the opposite of business to consumer (B2C) practices and is facilitated by the internet or online forms of technology. Another important distinction between the traditional business to consumer market is that the consumer chooses to be a part of the business relationship inside a consumer to business market. For a relationship to exist though both parties must acknowledge that it exists, implying that the relationship is important to both participants.
Data analytics plays a role in customer-to-business (C2B) interactions by providing information about customer behavior and preferences. Businesses use such data to analyze purchasing patterns and interactions between consumers and organizations.
Usage in technology The technology industry has largely adopted the use of consumer-to-business strategies, with social media corporations taking a large part in that growth. For example, companies such as Yelp or TripAdvisor provide a C2B service due to the amount of personal data harvested for use in targeting possible advertising clients. C2B can also be theorized, in the case of review aggregators, to increase the revenue of businesses through more overall knowledge about the company at hand. For example, if a corporation receives many positive reviews on a website such as Yelp, it may help to drive traffic to the company.
Data aggregation Aggregation of data is a common C2B practice done with many internet corporations. In this instance, the consumer is creating the value of personal information and data to better target them to the correct advertisers. Businesses such as Facebook, Twitter, and others utilize this information in an effort to facilitate their B2B transactions with advertisers. Most of these systems cannot be fully utilized without B2C or B2B transactions, as C2B is usually the facilitator of these.
Cross-Border C2B Payments in Developed Markets
Cross-border consumer-to-business (C2B) payments in developed markets involve transactions where individuals in one high-income economy pay businesses in another. These markets, including North America, Western Europe, and East Asia, are characterized by mature financial systems, high card penetration, and advanced digital infrastructure. Unlike emerging markets, where local payment methods (LPMs) dominate, developed economies prioritize speed, security, and innovation. Credit/debit cards account for over 70% of online transactions in regions like the U.S. and EU, but digital wallets, account-to-account (A2A) payments, and Buy Now, Pay Later (BNPL) services are reshaping the
Despite standardization, regional preferences persist. For example, 49% of Europeans prefer bank transfers for e-commerce, while U.S. consumers lean toward digital wallets like PayPal (used by 72% of online shoppers). Real-time payment systems (e.g., SEPA Instant in Europe, FedNow in the U.S.) and open banking APIs are accelerating cross-border C2B flows by enabling instant, low-cost transactions. As of 2024, cross-border e-commerce in developed markets is projected to grow at 12% annually, driven by demand for global goods and digital services.
Market Landscape and Growth Trends Developed markets exhibit distinct payment ecosystems shaped by regulatory frameworks, technological adoption, and consumer behavior:
North America: The U.S. and Canada are card-centric, with credit/debit cards accounting for 65% of online payments. However, digital wallets (Apple Pay, Google Pay, PayPal) now represent 30% of transactions, driven by mobile commerce and one-click checkout solutions.Automated Clearing House bank transfers remain critical for recurring payments (e.g., subscriptions), processing $18 trillion annually in the U.S. alone. Cross-border C2B payments are bolstered by platforms like PayPal and Stripe, which support multi-currency acceptance and localized checkouts. For instance, 40% of U.S. cross-border online purchases are from EU and UK merchants, facilitated by dynamic currency conversion (DCC) and fraud prevention tools.
Europe: The EU’s Payment Services Directive (PSD2) and SEPA Instant have unified cross-border payments, enabling real-time euro transfers across 36 countries. Digital wallets (38% of e-commerce) and BNPL services (e.g., Klarna, used by 150 million Europeans) are surging, particularly in Scandinavia and Germany. Local methods like iDEAL (Netherlands) and Sofort (Germany) remain popular, with iDEAL processing 1.1 billion transactions in 2023 (80% of Dutch e-commerce). Open banking adoption is rising, with A2A payments projected to grow by 29% annually, reducing reliance on card networks for cross-border transactions.
East Asia: Japan and South Korea blend traditional and digital methods. In Japan, Konbini (convenience store cash payments) still account for 15% of online transactions, but digital wallets like PayPay (55 million users) and credit cards dominate. South Korea’s KakaoPay (38 million users) and Naver Pay lead, with 62% of cross-border purchases made via mobile apps. Real-time settlement systems (Japan’s Zengin, Korea’s HOFIN) underpin instant cross-border remittances, which grew by 22% in 2023 due to regional e-commerce integration.
Key Players in Cross-Border C2B Payments
Major providers tailoring solutions for developed markets include: Adyen: Processes payments via 250+ methods, including SEPA Direct Debit and U.S. ACH. Its unified platform optimizes authorization rates (avg. 92%) for global merchants like eBay and Spotify.
Klarna: The BNPL giant serves 150 million users, allowing split payments for international purchases in 45 countries.
Stripe: Supports 135+ currencies and localized checkouts with embedded fraud detection. Stripe’s partnership with Klarna and Apple Pay enables BNPL and wallet-based cross-border payments, capturing 25% of EU C2B transactions.
PayPal: Facilitates cross-border purchases for 426 million active accounts, offering currency conversion at point-of-sale and Honey discounts to drive conversions.
Role of Regional Payment Preferences in C2B Transactions Case Studies Germany: Sofort and Giropay
Bank-based methods dominate German e-commerce. Sofort (now part of Klarna) allows real-time bank transfers using online banking credentials, processing 40% of cross-border purchases from German consumers. Similarly, Giropay connects 1,500 German banks, enabling direct account debits for international merchants like Zalando.
Sweden: Swish
Sweden’s mobile payment app Swish, used by 8 million users (80% population), integrates with cross-border platforms via Tink’s APIs. For example, a Swedish buyer can pay a U.S. merchant via Swish, with funds routed through Tink’s open banking network.
Japan: Konbini Payments
Global merchants like Amazon Japan accept Konbini cash payments via platforms like PayPay and 7-Eleven. Customers receive a barcode to pay in-store, bridging cash preferences with digital commerce.
Cross-Border C2B Payments in Emerging Markets