What Businesses Should Know About B2B Payments

Cross-border B2B payments are the backbone of financial infrastructure. Through them, businesses settle invoices, move capital between entities, and grow beyond geographical borders. The system has evolved over decades, but international transfers remain slower and more expensive than domestic ones.

Fortunately, technological advancements are changing that. Digital platforms now help businesses stay compliant and connect with service providers more easily. This article explores how international business payments work, the main challenges to watch for, and the trends shaping their future.

How Cross-Border Payments Work

At 16:40 CET, a SaaS company based in Berlin approves an invoice for a design agency in São Paulo. The cut-off time for international payments is 17:00. The team submits the payment, but one required field, a purpose code for the Brazilian real transfer, is missing. The B2B transaction doesn’t go through. By the time they resolve the issue, the cut-off has passed, and the payment is delayed by a full business day.

This is a prime example of how cross-border business payments depend on precise data, timing, and coordination. If we try to generalise the process, we can define the following steps:

• Payment initiation. A company initiates a money transfer to a supplier or service provider located abroad. The sender enters the amount, currency, recipient details, and supporting information.
• Currency conversion. Oftentimes, the sender and recipient operate in different currencies; that’s why the payment provider must convert the funds. The conversion may come with either a flat foreign exchange charge or a percentage-based markup.
• Intermediary banks or networks. When there’s no direct connection between the sender’s provider and the recipient’s bank, the payment is routed through one or more intermediary banks. Each of them adds fees and may introduce delays.
• Clearing and settlement. Once the funds reach the recipient’s local payment system, the transaction is cleared and settled. This includes regulatory checks, confirmation of payment details, and the final crediting of the recipient’s bank account.

What Are International B2B Money Transfers?

The Berlin–São Paulo payment above is an international B2B money transfer: one company paying another across jurisdictions, usually in a different currency.

In practice, it’s completed via SWIFT or local networks, may pass through intermediaries, and depends on these factors:

• Exact data (IBAN/BIC or regional formats, required purpose codes)
• Fee model (OUR/SHA/BEN)
• FX terms
• Cut-off times

Business Uses of Cross-Border Payments for B2B

From paying for goods to funding subsidiaries, cross-border B2B payments serve multiple financial needs.

The most common use is procurement. When a business buys products or raw materials from suppliers abroad, it often agrees to staged payments, an advance before production, and a balance after delivery. Each of those steps relies on timely, accurate international transfers. If the funds arrive late or incomplete, the shipment is delayed, and production stalls.

The same goes for services. An increasing number of design, marketing, development, and support teams go global. These providers invoice in their local currencies, and payments may be tied to fixed schedules or variable usage. If the reference numbers are wrong or the purpose code is missing, the transfer may be returned or delayed.

Multinational companies also move money between their own entities. A head office in London may fund a local office in Warsaw or transfer surplus revenue back to the parent. These internal flows help manage liquidity and optimise tax exposure, but they still require the same attention to timing and regulation standards.

Marketplaces and platforms face a different challenge. They need to disburse funds to hundreds or thousands of sellers across many countries, often on fixed weekly or monthly schedules. Using local rails and virtual IBANs helps reduce costs and simplify reconciliation.

At the end of the business cycle, profits must return home. After taxes are paid and financials are finalised, many companies repatriate profits to their home country. And again, delays, fees, and unclear FX terms can affect how much is actually received.

Types of B2B Cross-Border Payments

Once the purpose of a cross-border transaction is clear, the next step is choosing how to move the funds. There are several options listed below.

#1: International wire transfers
The most traditional option involves sending funds via the SWIFT system. Such transactions are widely accepted and can be easily tracked. However, they are followed by lift fees, FX markups, and potential delays if intermediaries are involved or errors occur.

#2: Digital payment platforms
Include fintech providers and offer more flexibility. They often provide access to local rails, better FX rates, and faster settlement times. Some allow businesses to collect and hold funds in multiple currencies. It’s a viable option for platforms, small businesses, and companies with global customer bases.

#3: Payments through credit and debit cards
These are occasionally used for smaller business transactions, especially in SaaS or digital services. They’re fast and familiar, but not always accepted for large invoices, and fees can add up on both sides.

#4: Letters of credit
Typically used in trade finance when trust between parties is still being established. Through a letter of credit, a financial institution guarantees that the payment will be settled once conditions are met. It’s a traditional method that comes with paperwork and extra fees.

Steps to Accept International B2B Transfers

Before a business can accept cross-border payments, it needs to settle a few things beforehand.

1. Open a corporate account with a regulated financial institution that understands the industry and ownership structure.
   
   For example, Bivial is authorised by FINMA under Article 1b of the Swiss Federal Banking Act. It offers fully remote onboarding, multi-currency IBANs, international B2B payment services, and a convenient Dashboard where clients can manage their finances.
   
   
2. Once the account is active, a business must define which currencies it wants to accept and from which markets. Each corridor may require different data formats or purpose codes. Issuing clear payer instructions helps reduce rejection rates.
3. Operational controls matter too. User roles, approval chains, and transaction limits keep flows safe and ready for audits.
4. Before sending significant sums, it’s better to test with small amounts. Send a moderate transfer, confirm it lands correctly, check how it appears on statements, and ensure everything reconciles smoothly.

Regulation and Taxes in B2B International Payments

Every cross-border transfer is subject to oversight: by the sender’s and recipient’s countries, and by the jurisdictions it passes through. Most providers usually perform core compliance checks in the background, but the business still holds equal responsibility.

1. First, implement Know Your Business (KYB) and Know Your Customer (KYC) procedures. Both sender and recipient must be verifiable, with clear ownership structures and lawful business activity.
2. Next come sanctions screening and monitoring obligations. Transfers must not involve sanctioned individuals, entities, or jurisdictions.
3. In many countries, businesses must also be ready to provide proof of payment documents (PoP) to justify outbound transfers, particularly for large amounts or repeated flows.

Beyond regulation, cross-border payments can trigger tax implications that vary dramatically between countries. For example, payments to certain jurisdictions may require withholding tax, which reduces the net amount the recipient receives unless a double-taxation treaty applies. In the case of digital services, VAT or GST may also be charged, depending on where the buyer and seller are registered.

That being said, professional guidance for businesses going global is essential, particularly in the beginning and if the company operates in multiple markets. A reliable financial partner can provide tools and documentation, but compliance strategy and tax treatment should be reviewed with legal or tax experts.

Benefits of International B2B Payments

A well-designed cross-border payment setup unlocks new markets and improves how teams operate across borders.

Below are the key benefits businesses gain from streamlining their cross-border B2B payments:

Benefit	Outcomes
Faster, more reliable settlements	Builds trust with suppliers and partners, improves delivery timelines and fulfilment.
Access to new markets	Enables businesses to expand globally, transact in local currencies, and attract regional partners.
Improved cost control	Reduces FX losses, lift fees, and operational overhead when using local rails or competitive platforms.
Automated reconciliation	Minimises manual entry and errors, supports finance teams with better reporting and faster closes.
Real-time cash flow visibility	Supports better decision-making and helps manage working capital across regions.
Scalable operations	Makes it easier to handle high-volume business transactions, such as recurring payouts to global contractors or suppliers.
Better audit readiness	Ensures each payment is traceable, properly documented, and compliant with local rules.
Platform integration	Embedded payments streamline approval chains and make settlement part of core operations.

B2B Cross-Border Payment Challenges

As seen, international B2B payments come with clear advantages, but also with operational risks that businesses need to manage from the start.

Here are the most common issues companies face and practical ways to reduce their impact:

Challenge	Why It Matters	How to Address It
Unclear fee responsibility	Unexpected deductions at the receiving end reduce payout accuracy.	Define fee models clearly in payer instructions.
FX margin hidden in “zero-fee” offers	The actual cost is embedded in the conversion, not the transaction fee.	Request firm quotes, compare FX rates to mid-market, and use transparent providers.
Lift fees from intermediary banks	Intermediaries may deduct fixed charges along the route without prior notice.	Use fewer corridors or platforms with local settlement options to avoid intermediaries.
Returns or delays due to data errors	Wrong IBAN, missing BIC, or absent purpose codes cause rejections and hold funds.	Validate data before sending; create pre-set templates per corridor.
Compliance holds or document requests	Sudden freezes or requests for proof of payment delay settlement and strain supplier relationships.	Keep documentation (invoices, contracts) ready; flag higher-risk corridors in advance.
Currency exchange risk	FX fluctuations between invoice and payment date can erode margins.	Use pre-approved quotes, FX locks, or hedging where appropriate.
Time zone and cut-off mismatches	Approvals made late in the day may miss same-day settlement windows.	Align internal approval times with corridor cut-offs, submit payments early.
Public holidays or local system downtimes	Payment corridors can close even when your operations are open.	Maintain a payment calendar per currency, including buffer time for key payments.

Future of B2B Cross-Border Payments

Cross-border payments may still seem complex to some companies. Fortunately, several trends are already reshaping how businesses send and receive money globally, moving toward faster and more integrated cash flows.

One major shift is the rise of embedded finance, the integration of financial services directly into the platforms where businesses already work. E-commerce, ERP, and invoicing tools are becoming payment hubs in their own right. This allows businesses to initiate transfers, manage FX exposure, and reconcile incoming funds without leaving their operational systems.

As more providers adopt ISO 20022, payment data becomes richer and easier to track. API-first infrastructure allows businesses to automate payments and reduce their reliance on email-based approvals. Some corridors are experimenting with real-time cross-border settlement, while others already support faster “pay-like-a-local” experiences through local rails.

Meanwhile, new entrants are replacing slow, SWIFT-reliant paths with alternative networks, helping fill the gaps left by traditional correspondent banks. Digital currencies and blockchain-based rails are also being actively tested, but mainly in regulated environments and under strict compliance frameworks.

International B2B Payments: Conclusion

The direction of international B2B payments is clear: less manual work, greater transparency, and a shift towards workflows where payments occur as part of the process. The key to success in this context lies in finding a partner who understands the importance of timing, structure, and compliance.