Looking for a B2B Cross-Border Payments Solution? Here is the Ultimate Guide

Cross-border B2B payments are hardly a new thing - they have been a necessity since borders became a thing, with solutions potentially appearing as early as the Roman Empire...

Cross-border B2B payments are hardly a new thing - they have been a necessity since borders became a thing, with solutions potentially appearing as early as the Roman Empire. However, with the ever-increasing speed of business and far more diversity in goods and services around the world, the need for a quick and reliable international payments solution has never been greater.

Bizarrely, while there has been no shortage of innovation in cross-border customer payments in the last few decades, the business-to-business payments landscape has struggled to keep up. In spite of the fact that B2B cross-border payments are expected to be worth $35 trillion by 2022, there remain relatively few options available, and some of those are extremely outdated and inefficient. We have compiled this comprehensive guide to help you figure out how to optimise your B2B payments, allowing you to get an edge on those still stuck in the past.

How do cross-border B2B payments work?

We are going to assume that, if you are reading this page, you get that a B2B payment is one made from one business to another as a means of obtaining goods and services to improve your own business. In other words, one where the customer is not a typical consumer. The payment process naturally needs to be a little different because there are significantly more accounting issues to contend with. For example, goods and services purchased for the benefit of a business and not personal consumption can be labelled as a business expense and may therefore be taxed at a different rate, if at all.

Domestic B2B payments can be easily settled since both parties are operating within the same financial structures. There are plenty of available methods available, which have progressively made things simpler and cheaper as the years have passed. Transactions originally conducted in cash and later with cheques can now be completed almost instantaneously using credit cards and online portals, all with minimum risk, fuss or fees.

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