Technology is dissolving geographical boundaries. Companies can now do business, create partnerships and build complex supply chains all via the internet. You can communicate with a few taps of a phone screen, jump on a quick Zoom call and run entire operations through project management software.

But a paradox remains.

Despite information being able to travel instantly, international payment processes are still frustratingly complex and outdated. Cross-border B2B payments still battle delays, crippling fees and opaque processing systems. The whole system drains both your financial resources and operational efficiency.

Shockingly, 77% of CEOs and COOs dedicate their time each month to deal with invoice processing. 40% even have to intervene every week!

Every day you run up against this problem, your business is bleeding efficiency and competitive advantage. Fees are mounting up, payment delays strain supplier relationships and that's even before we get to the administrative overhead. Valuable resources are being diverted from your core business growth.

In this cross-border B2B payment guide, you'll learn actionable strategies that forward-thinking businesses are using to remove payment challenges and gain a strategic advantage. 

By the end, you’ll have a clear route to cutting payment costs by 80%, reducing settlement times to minutes and removing reconciliation work that drains your team's productivity. Plus, you’ll have the tools to streamline your global payments and enter new markets faster than the competition.

What are cross-border B2B payments?

Cross-border B2B payments are financial transactions that take place between two businesses operating in different countries. Generally, this requires money to be moved across borders, through multiple banks and to exchange different currencies.

Examples of international B2B payments include:

• A manufacturing company paying overseas material suppliers

• A software company billing international clients

• Businesses paying foreign contractors or remote employees

International trade has become the norm, not the exception and the need to move money efficiently across borders is directly impacting more and more businesses. In fact, the global B2B cross-border payment market hit $31.6 trillion in 2024 and is projected to grow 58% to $50 trillion by 2032.

What might seem like a simple money transfer actually involves multiple middlemen and third parties, currency exchanges and regulations to deal with. Those businesses that can cut through this resource drain gain an advantage in their pricing, delivery speed and relationship building with international partners.

The mechanics of cross-border B2B payments

So what actually happens behind the scenes when money moves internationally?

A cross-border business payment journey is like international air travel. It requires multiple checks and balances. The money must go through security checks and waste time in several layovers during its trip to the final destination.

The money leaves the sender's bank, then goes through correspondence banks (the middlemen) before ending up in the recipient's bank. Each ‘layover’ adds time, cost and potential errors.

It's staggering, the number of different intermediaries involved in the ecosystem:

• Commercial banks provide bank accounts and initiate transfers for people and businesses

• Correspondent banks facilitate currency conversion and transmission

• Payment networks like SWIFT, Visa and RippleNet are used for payment processing and connecting banks

• FinTech providers offer fresh alternatives to traditional banking routes

Traditional banking rails are built on networks like SWIFT, which is a messaging network to transfer information, but not the actual money movement itself. Compare this to more modern payment systems, which rely on API-driven platforms, blockchain networks and real-time systems that remove third parties, thereby slashing fees and completion times.

Although you never see the mechanics behind international payments directly, they do impact your bottom line, timing and risk exposure. While traditional banking routes are familiar to most of us, they have been kept opaque in price and timing. You send your money off from your bank account and have no idea where it is until it hits the recipient's bank account days later.

Modern cross-border payment solutions offer vast improvements, giving more transparency in payments and delivering funds in minutes, not days.

The core challenges of borderless commerce

The challenges of cross-border operations aren't just an inconvenience. They have a material impact on your business performance.

High fees and hidden costs erode your profit margins

• Transfer fees can average 3-5% for traditional bank transfers. The more money you send, the more it costs you.

• FX spread costs often add another 1-3% above mid-market rates, a fee that usually goes unnoticed.

• Intermediary banks can add unexpected deductions from payment amounts.

• Operational cost of managing complex payment workflows can surpass the direct fees - a hidden drain on profit margins.

Time delays damage business relationships

Time delays can lead to unpredictable settlement times, which can quickly damage supplier relationships and even disrupt supply chains. In fact, cross-border payments take 55% longer than domestic transactions for US/UK businesses.

Plus, the average settlement time for UK businesses trading internationally is over 30 days. It's no wonder that 54% of global companies choose to prioritize payment speed when selecting B2B cross-border payment solutions and partners.

These delays don’t just cause problems at payment execution, but extend to the whole payment workflow from validating invoices to compliance documentation collection to reconciliation with contracts and purchase orders.

Regulatory complexity

Regulatory complexity and missteps risk severe penalties and reputational damage. There are varying KYC and AML requirements across different jurisdictions, along with numerous compliance checks and that's before you even get to different tax reporting requirements.

Cross-border B2B payment workflow amplifies the regulatory challenges with each country imposing unique regulations for foreign transactions. It means documentation changes according to the currency, tade, and customs regulations. In addition, when there’s multiple subsidiary and parent companies the sign-off flow becomes ever more intricate. Mistakes anywhere in the payment workflow can can an indefinite freeze on payments.

Security concerns

Fraud risk and security worries still keep businesses on high alert. For example, international transfers are hot targets for business email compromise scams. And with bank transfers, it can be hard to recover funds once they leave the country. With multiple steps in a payment workflow extending to multiple stakeholders, establishing a secure document approval chain is critical. 

Administrative burden

Administration of all of this is unwieldy too. Accounting and reconciliation become complex with incomplete payment information requiring manual matching. The administrative challenges extend further than basic bookkeeping. 

Mapping invoice to the corresponding contracts, purchase orders, and validating what's being paid creates a maze of tracking. Ensuring that payments are properly approved internally becomes slow with multiple stakeholders in the approval chain. That’s all weighed down further with requirements to calculate correct taxes and collect regulatory paperwork like W9, W8BEN and 1099 forms. 

How cross-border invoicing affects payment success

Invoicing isn't just paperwork. It's a key part of getting paid faster internationally. It directly impacts payment speed and success. Efficiently structured invoices are paid two to three days faster on average. In fact, 75% of businesses say that poor information flow for invoicing is the main reason for late payments. 

• Currency mismatch: When it comes to cross-border invoicing challenges, currency mismatch between the invoice and settlement currency is a regular problem. As a business, you want to get paid in your native currency, while a supplier might prefer to pay in theirs. This disagreement leads to unnecessary friction and delays in getting paid.

• Incorrect banking details: If your business is not used to dealing with international payments or new countries, providing incomplete or incorrect international banking details creates an unprofessional look to your business, along with slowing down payment procedures.

• Tax ID: Local tax identifiers like VAT, GST and tax IDs are another bridge to cross. Different regulations and requirements in different countries mean that businesses are left scrambling and confused about the details they need to provide.

• Invoicing format: Required content and format vary from jurisdiction to jurisdiction. Some countries have heavy regulations on what to include in an invoice, while others are more relaxed. It's another frustrating complication to work through. For example, e-invoicing is becoming mandatory in some jurisdictions in 2025 with specific format requirements.

When you're billing globally, it's crucial to think about invoice presentation and clarity. When left to do this manually, human error can creep in, plus training up new staff takes more valuable resources out of the operational efficiency of your company. 

It's why smart invoicing tools, like Acctual, are becoming more popular to help reduce these errors and delays in cross-border B2B payments.

How technology is transforming cross-border payments

The technological revolution happening in payments is reshaping what's possible for global commerce. It isn't just creating small improvements; it's actually delivering tangible business value. Companies leveraging these innovations gain not just operational efficiency but also improved liquidity management and partnership satisfaction.

As we've seen, strategically adopting modern payment technology is becoming a competitive differentiator for global businesses. You can strengthen relationships and become agile when entering new markets and jumping on opportunities and trends.

So when looking at transforming B2B cross-border payments in your business, what are the key factors to assess?

Real-Time Payment Networks Are Expanding Globally

The US and the UK already enable instant domestic transfers through FedNow and Faster Payments respectively, while Singapore and Thailand are integrating cross-border real-time systems and the EU has initiatives like the SEPA zone for money to move freely across Europe.

These sorts of innovations are opening up 24/7 settlement capabilities that eliminate weekend and holiday delays.

FinTech innovation challenges traditional banking

FinTech has been aggressively challenging traditional banking over the past decade. They offer API-first platforms which enable integration directly with business systems and specialized providers even focus on specific corridors or business sectors.

FinTech efficiency versus traditional banking delivers a surprisingly high cost reduction of 80% and coupling this with near-instant global transfers, it's not hard to see why many businesses choose fintech solutions over traditional banks.

Many of these FinTech offerings, like Acctual, even wrap everything in a smart invoicing system for complete automation of global cross-border payments.

Blockchain and stablecoin solutions

The birth of blockchain and stablecoin payment solutions takes things a step further, with settlement times reduced from days to minutes or even seconds in many cases. There's no need for correspondent banking fees and there's complete transparency in the status of a transaction and the fees.

Choosing the right cross-border payment partner

Your choice of payment partner has a direct influence on your business's global capabilities. Having the right provider removes barriers to your business growth and actually becomes a strategic ally in your expansion.

Getting this choice right can do more than just provide high-quality transaction processing. It reduces friction with customers, improves supplier relationships and adds operational efficiencies that compound over time.

When looking for a payment provider, there are several factors to take into account:

1. Global network reach

Simply put, does the payment provider provide direct or indirect access to local payment systems? For example, some operators like Wise are limited and restricted in many areas of the world, whereas Acctual can offer direct reach into many emerging markets excluded by the biggest fintech banks.

2. Fee transparency and structure

Are you paying a fixed fee or a percentage? This is an important consideration depending on the size of your transfers. For example, high fees between 3% and 5% will sting you on bigger transfers. Whereas fixed fees for wire transfers, which can reach $50, massively hurt small businesses making smaller payments.

And then there's the FX markup to factor in. Do you know how much you're going to be paying to convert currency for payments you send and receive?

3. Settlement speed, guarantees and tracking capabilities

How long does it take for payments to be settled? Will it take a few minutes, same day, or take days or even weeks? With the top payment processors now, it feels almost automatic as soon as an invoice is paid. In just minutes after an invoice is paid, you receive the money into your bank account or wallet.

4. Multi-currency account management

Many modern solutions require you to have multi-currency accounts within the platform. That means you have to both manage these accounts and manually transfer money from one to the other.

On the other hand, solutions like Acctual take care of this for you. There's no need to manage multi-currency accounts. Your client pays in their chosen currency and the money hits your bank account or wallet in your local currency or stablecoin.

5. ERP and accounting system integration

Digital ERP and accounting Systems are standard in modern business. So you need a payment provider that has API availability linked to your system.

For example, if you're using Xero or QuickBooks, the top solutions should integrate invoicing and payments directly into your accounting system. This way, there's no need for manual reconciliation and matching. It's a huge administrative win and allows complete workflow automation. As your business scales and transaction volumes grow, you're not left with a spiraling reconciliation problem.

6. Security and risk management

This is the final piece of the puzzle. First of all, does the payment provider meet regulatory compliance in the required countries? Not just to operate legally, but so you're safe in the knowledge that it stores and manages data according to best practices.

Adding to this, there should be proper fraud protection mechanisms and liability policies in place to make sure your global B2B payments and finances are protected at all times. Providers should have the ability to screen against global sanctions lists such as OFAC to ensure you are able to legally pay the vendor. It’s a critical step in protecting your business from potential penalties and reputational damage. 

Future trends in international B2B payments

International B2B payments are only going to grow as the world becomes increasingly connected. Informational and communication borders will continue to dissolve.

Ensuring you have smooth international B2B payments is not just a nice-to-have; it's going to become the standard in which most businesses operate. Early adopters of emerging payment technology will gain an advantage in cost structure, operational efficiency and perhaps most importantly, customer experience.

Real-time, 24/7 global payments will become the norm

With the growth in real-time processing capabilities, your suppliers and business partners won't be happy waiting days or weeks for payment. Real-time, 24/7 global payments will become normal; it will be a consumer expectation.

Virtual bank account structures are replacing traditional banking

It will be rare for a business just to have a single, one-currency account, as companies are likely to maintain balances in multiple currencies, look to optimize FX costs and start using cryptocurrencies like stablecoins for their cross-border B2B payment solutions.

FinTech-bank relationships are reshaping the ecosystem

Traditional banks are still providing the fundamental regulatory framework, conventional payment rails and security, while FinTechs are building on top of this to deliver user experience and technological innovation.

A newer trend of embedded finance is bringing these payment capabilities directly into applications and business software. It points to a completely more frictionless future of payments.

How to build a cross-border payment strategy

In the process of creating a more efficient, reliable global business, you need to create a deliberate payment strategy. It’s the key to transforming cross-border transactions from a challenge into a proactive business strategy.

A well-designed payment strategy enables you to outperform competitors in your working capital efficiency, supplier/customer relationships and operational resilience.

So how should you approach creating a cross-border payment strategy in your business?

Start by defining payment flows

Map your current and planned B2B international payment relationships. Pay close attention and identify high-volume, high-value corridors and map out the inbound and outbound financial requirements.

Assess your regulatory exposure

What countries are you working in? Highlight high-risk jurisdictions that require specific compliance. This might include KYC and AML requirements across your payment footprint. This will allow you to develop jurisdiction-specific documentation standards for each key location.

Choose the right tools for your needs

Cross-border payment software isn't a one-size-fits-all solution. You need to pick the optimal tools for your global locations and partners. Work out what payment methods you need to match to your business relationships. 

You might consider a tool or partner with a specialized approach versus one that is a more generalist, catch-all offering. This will enable you to select cross-border B2B payment companies with a strong profile in your priority payment corridors.

Develop an FX and treasury management approach

This is especially important for companies dealing in multiple currencies. Do you need a local currency account strategy or a centralized approach with everything pooled into a central fund? And how will you hedge against currency volatility as you hold and move through different currencies?

Complete cross-border payments with Acctual

Cross-border B2B payments can be a maze. Traditional banking systems are slow, antiquated and expensive. In addition, not all modern global payment solutions are as effective as they appear to be. You still hit jurisdictional dead ends and have the complication of managing multi-currency accounts.

Let’s be honest, you’re not in the business of FX trading… That’s why Acctual get’s rid of high fees, glacial payment speeds and rubbish exchange rates. Instead, you can invoice, get paid and make payments in the currency you want. You won’t find a more flexible global B2B invoicing solution. 

Take this example:

A marketing agency based in Africa was waiting up to two weeks to get paid in fiat, relying on other parties to get paid. They have a partner business in the UK that accepts payment via PayPal. Then, they convert the funds to Naira before sending it to the agency. From there, the agency buys USDC to pay its contractors. 

Now by invoicing their clients with Acctual, they receive USDC payments directly, with the flexibility of letting their client pay in fiat. Now they’re getting paid faster and making it easier to pay their employees as well.

Acctual adjusts to your business’s needs. Choose how you invoice and run payments. You could choose to get paid in stablecoins like USDC, but allow your client to pay in local Fiat currency. Or vice versa!

It’s easy for anyone to get started with an invoice payment link or PDF by trying out the free invoice generator here.