More and more businesses are shifting their business-to-business (B2B) payments to digital payment platforms, as they focus on improving payment speed, cost-efficiency, and security.

B2B payments tend to be more complicated than business-to-consumer (B2C) payments, due to their larger volumes and longer lead times. By making sure you understand and optimise your B2B payments, you’ll be able to save your finance team hours of time every week and drastically reduce your associated payment costs (especially when it comes to cross-border transactions).

With the B2B payments market size due to grow to US$174.38 trillion by 2030, let’s take a look at what B2B payments are, the most popular B2B payment methods in 2025, the future of B2B payments, and more.

Key takeaways

• B2B payments refer to the financial transactions that occur between two businesses to pay for goods, services, or intellectual property. They tend to be larger, more complex, and more likely to be paid regularly according to a schedule.

• Common B2B payment methods include online payment platforms, wire transfers, electronic payment systems, cheques, credit and debit cards, and corporate cards.

• B2B payment challenges can include costs that are difficult to predict, like exchange rate and currency conversion fees when dealing with international vendors and suppliers, as well as security risks and regulatory hurdles.

• When looking to adopt a new B2B payment system, businesses should look for cost-saving multi-currency and cross-border payment capabilities, quick transfer times, convenient automation opportunities, excellent security features, and simple integration with their existing systems.

What are B2B payments?

B2B payments are financial transactions that occur between two businesses, usually involving exchanging funds for goods, services, or intellectual property.

Unlike B2C payments, which are usually smaller, more frequent, and focused on the end consumer, B2B payments tend to be larger in volume, and more complex. They often involve the approval of multiple stakeholders, compliance and security considerations, contract negotiations, and currency and payment schedules – most of which the buyer and supplier must navigate together.

Having an efficient and reliable B2B payment process is really important for businesses, as it ensures vendors and suppliers get paid on time. An efficient process facilitates good working business relationships and minimises disruptions. It also simplifies cross-border payments and transactions, streamlining cash flow and improving payment visibility, which can result in more strategic financial decision-making.

How do B2B payment processes work?

The payment process

Payment processing is what happens during an online purchase to transfer funds from a buyer’s account to a supplier’s account. The B2B payment process typically begins when one business (the buyer) issues a Purchase Order (PO) to another company (the supplier) for the goods or services they’ve agreed to provide.

Say your business is engaging a supplier for a purchase. You’ll raise a PO and send it to your supplier. Your supplier will then process the PO, supply the goods or services, and issue an invoice. You’ll then verify the invoice details (such as the items received, the amount due, the payment methods and the due date), and then initiate the payment using the method you’ve agreed on. Once you’ve made the payment, the funds will be transferred from your merchant account to the supplier’s account.

Payment methods

You’ll need to understand different payment methods to provide the best possible payment experience – and the same goes for B2B payments. These can include:

• Online payment platforms, like Airwallex

• Wire transfers, such as those made using the SWIFT network

• Electronic fund transfers, such as Automated Clearing House (ACH) in the US, and BACS (Bankers Automated Clearing System) and CHAPS (Clearing House Automated Payment System) in the UK

• Cheque

• Cash

Find out more about CHAPS versus BACS.

Here are the average timeframes for when the funds will reach the supplier’s account, depending on the payment method you use.

• Online payment platform: instant for real-time payments or one to three business days

• Wire transfers: often processed within 24 hours for domestic payments, while international payments can take one to five business days

• Electronic fund transfers: the same day to four business days, depending on the type of transfer and the financial institutions involved

• Cheque: usually two business days once the cheque has been cashed

• Cash: as soon as it’s deposited

Understanding the B2B payment cycle

The B2B payment cycle involves multiple stages, stakeholders, and business systems. Here’s a basic workflow of the different stages of a typical B2B transaction, including some of the variations that are specific to B2B payments.

1. The buyer issues a PO to their supplier. The PO outlines the details of the purchase, and could include information like the products or services to be purchased, the prices, delivery timelines, and payment terms. It’s usually first reviewed by the buyer’s finance team to ensure that it aligns with company policies and budgets.

2. The supplier reviews the PO. They confirm that they can fulfill the order.

3. The supplier issues an invoice. The invoice includes details like descriptions of the goods and services, the total amount due, payment terms, and accepted payment methods. Depending on the seller’s usual accounts payable process, they might also issue the invoices after they’ve delivered the goods.

4. The supplier delivers the goods or services to the buyer. The buyer will inspect the quality and quantity to ensure it aligns with the PO, and will provide feedback to the supplier on any changes or corrections if needed.

5. The buyer approves the invoice for payment. Once the buyer is satisfied with the goods or services, they submit the supplier’s invoice for approval to their accounts payable (AP) department. The AP department makes sure the invoice matches the initial PO and what they’ve actually received. This process differs from the B2C payment process, as B2B invoices often require multiple approvals.

6. The buyer pays the supplier via their preferred payment method. This could be an online B2B payment platform, wire transfer, cheque, or an electronic fund transfer like ACH, BACS, CHAPS, or SEPA. The payment method could depend on the supplier’s location, the size and currency of the transaction, the payment terms, and how quickly they need the payment to be received. 

7. The supplier sends a payment confirmation to the buyer. Both businesses record the transaction in their financial records (a process known as ‘invoice reconciliation’).

8. Both businesses keep comprehensive and up-to-date records of their transactions. This includes keeping copies of POs, invoices, payment records and other correspondence with the businesses they’ve transacted with. Record keeping is necessary for legal and tax requirements, as well as for managing cashflow, regulatory compliance, and fraud detection.

Paying attention to the differences of B2B payments (in comparison to B2C payments) can help you avoid late fees, unnecessary costs, and lost productivity. Here are some of the things to look out for.

• Technology and automation opportunities. Streamline your processes with an online B2B payment platform to improve speed, cost, and visibility of payments.

• Business security and fraud prevention. B2B payments are often high value, so you’ll need to employ strong security measures to protect your financial data’s integrity and prevent fraud as much as possible.

• Cross-border transactions. Using a payment method that offers competitive exchange rates, low cross-border transaction fees, and fast transfer times (ideally using local payment rails) is a great option for saving time and money when paying vendors and suppliers.

What are the benefits of a B2B payment platform?

Here are three main benefits of using an online payment platform for B2B payments.

Streamlined financial operations and accounting

Using an online payment platform makes it easier to track your payments and transactions, helping you maintain accurate records and reducing manual reconciliation.

With more B2B payment platforms offering real-time reporting, you can gain better visibility into your cash flow, manage your budgets more efficiently, and make better strategic financial decisions. Simple and fast integrations with your existing accounting software can get you up-and-running even faster, while minimising errors and making more accurate financial reporting possible.

More cost-effective B2B payments

Traditional payment methods, like wire transfers or cheques, can involve higher processing costs and more manual handling (meaning more hours from your team). On the other hand, if you use a fintech to make B2B payments, you can significantly reduce your transaction costs, especially when dealing with high volumes of payments and cross-border transfers.

The best B2B payment platforms will enable your vendors and suppliers to pay you as if you were a local in their currency, and for you to settle the payment like-for-like in your account. In other words, if your platform offers multi-currency accounts, a vendor would be able to pay you in a foreign currency, such as USD, and you’ll be able to settle those funds in USD. You can then pay suppliers from the same account in USD, without having to pay for conversion fees.

Stronger security measures

Security should be a top priority for your business transactions, and online payment platforms can offer stronger methods for protecting sensitive financial data. Your online payment platform of choice should comply with high international security standards (such as PCI DSS, SOC 1 and SOC 2), as well as any local regulatory requirements. Advanced data encryption technologies and other features like multi-factor authentication will also keep transactions safe and secure, protecting you against fraud and data breaches.

The most popular B2B payment methods in 2025

While many companies still use traditional methods like wire transfers, cheques, and cash, more businesses are shifting to simpler, more scalable digital solutions for managing their supplier and vendor payments.

Here’s a breakdown of the seven most popular B2B payment methods in 2025. 

1. Online payment platforms

More businesses are choosing online payment platforms for faster, more secure financial operations. Digital payment solutions are fast, easy to use, and can offer useful features like cost-saving multi-currency capabilities and real-time payment tracking. Digital payment solutions can also integrate easily with your existing accounting software, simplifying accounting, reconciliation processes, and financial analysis.

2. Electronic Funds Transfers, such as Automated Clearing House (ACH) payments

ACH payments are a form of Electronic Funds Transfer (EFT) in the United States. ACH payments are a digital cheque, allowing US businesses to send and receive funds directly from one bank account to another. Trillions of dollars are moved every year through ACH payments throughout the US. They can be cost-effective, with the median cost being US$0.29 per transaction (compared to a wire transfer which is around US$25 on average). Keep in mind that you can only make ACH payments between two US accounts, and some banks may have transfer limits.

Other similar EFT methods include BACS and CHAPS payments in the UK and SEPA in the European Union.

3. Credit and debit cards

Many businesses use credit or debit cards from card networks like Visa, Mastercard, and Amex allocated to their company’s B2B payments. Credit and debit cards are easy to use, process payments quickly, and can earn reward points or cashback benefits.

However, when using these types of cards, businesses can often face higher transaction fees compared to online payment platforms, with credit card processing fees typically ranging from 2.87% to 4.35% of each transaction (with merchant service provider fees on top of this). For large B2B payments, these fees can really add up over time.

4. Corporate cards

A corporate card is a payment card, sometimes a credit card, that employees use in their day-to-day roles for work-related expenses. With corporate cards, all transactions are tied to the business entity, rather than specific employees or other card owners. Corporate credit cards are available to large, established companies with substantial revenue, and are ideal for bypassing red tape for small, everyday purchases.

For large B2B payments, online payment platforms are still a smart option, as corporate cards can incur high interest rates (between 12.65% to almost 18% depending on the issuing bank), as well as international transaction fees. With online payment platforms like Airwallex, you can make low-cost B2B payments globally at market-leading exchange rates.

5. Cheques

You might be surprised to know that many businesses still make B2B payments using physical paper cheques. Advantages of paper cheques are that they are always traceable and offer tangible recordkeeping. But, they can also negatively affect cashflow and vendor relationships with their lengthy processing times (as long as 14 days). They are also the payment method that is most vulnerable to fraud, with 65% of respondents in the 2024 AFP Payments Fraud and Control Survey Report reporting that their organisations had experienced cheque fraud.

6. Wire transfers

A wire transfer is an electronic transfer of funds via a network that is administered by banks and transfer service agencies around the world. They can be sent between banks, or through a non-bank service such as Western Union, using entities like the SWIFT network or Fedwire.

Wire transfers allow large amounts of money – like B2B payments – to be sent securely and quickly (usually within two business days). However, digital payment platforms are still faster than wire transfers, and the flat fee that banks often charge for wire transfers (usually between US$15 and US$50) can eat into profits, especially for frequent payments. 

7. Cash

Few businesses use cash for B2B payments, except for small, in-person day-to-day transactions. But the convenience of using cash is limited, and it lacks the tracking and security benefits of online payment platforms.

What should I look for in a B2B payment platform?

Making sure you choose the right platform is important for streamlining your business’ transactions and boosting efficiency. So, with this in mind, let’s look at five key features to look for when selecting your B2B payment platform.

1. Cross-border payment support and multi-currency capabilities. Your B2B payment platform should enable you to pay your suppliers globally, without long wait times or international fees. The best platforms offer like-for-like currency settlement, allowing you to receive, hold, and spend multiple currencies like a local. It should also provide competitive exchange rates for cross-border payments. 

2. One centralised location for accepting international payments. Your B2B payment platform should accept funds from both your domestic and international buyers, without having to set up additional bank accounts around the world.

3. Automation that makes B2B payments easier. Choose a platform that saves your finance team from performing manual, time-consuming B2B payments, by automating your accounts payable and paying your invoices from one platform. Your platform should let you customise your approval workflows and notifications to give you total control over your spend.

4. Integration with existing accounting and enterprise resource planning (ERP) software. Being able to connect your B2B payment platform with your existing accounting software will save you countless hours of work each week. You’ll be able to speed up your B2B payment cycle, automate your payments, and categorise your expenses directly to your chart of accounts.

5. Expense management support. Your B2B payment system should let you to manage and track your business expenses in one place. Having built-in expense management software means you can move away from manual processes that sap your team’s time and distract them from their core job – improving and growing your business!

Are B2B payment platforms secure?

Security should be one of your top priorities when assessing B2B payment platforms. Choose a platform that complies with the highest industry standards, such as:

• PCI DSS (Payment Card Industry Data Security Standard)

• PSD2 (Revised Payment Services Directive)

• AICPA (American Institute of Certified Public Accountants)

• SOC 1 and SOC 2 (System and Organization Controls)

The company running the platform should also be able to show that they’re truly rigorous when it comes to keeping your funds safe. This commitment will come in the form of being regulated and licensed in all the jurisdictions where it needs licences to operate, such as with the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Financial Crimes Enforcement Network (FinCEN) in the US, as examples.

Your chosen platform should also have other important security features like tokenization, encryption, 3DS secure authentication and payment fraud detection. These features protect your sensitive data and reduce the risk of fraud when making B2B payments.

With an Airwallex Business Account, your money is kept safe with leading global financial institutions and safeguarded in line with all local regulations where Airwallex operates. Find out how Airwallex keeps your money safe for your B2B payments.

What are the challenges associated with B2B payments?

There are several challenges you might face when choosing, adopting, or implementing a new B2B payment system.

• Unpredictable costs, like exchange rates and currency conversion fees. These can complicate international B2B payments, leading to cashflow issues and financial uncertainty. This fluctuation can make it difficult to accurately create your business’ budgets and financial forecasts. Choosing a B2B payment platform that offers competitive and transparent exchange rates will make it easier for you to handle the changing tides of doing business in multiple currencies.

• Integration with existing software. Choose a B2B payment platform that easily integrates with your accounting software to avoid issues, such as manual reconciliation and payment delays.

• Reluctance from partners and employees. Your customers and suppliers may be wary of using a new platform to pay you, perhaps due to security or privacy concerns. They might also find the new system complex or challenging to understand at first, so it’s important to emphasise the long-term benefits of adopting a new B2B payment system and guide them through it during the first couple of months.

• Security risks. As B2B payments tend to be large, cross-border transactions, they’re a target for security breaches and fraud. Choosing a B2B payment system that has robust security measures, tokenization, real-time fraud protection will ensure your transactions remain secure.

• Regulatory hurdles. Each country has its own rules for receiving and sending international funds, such as transaction limits, permitted class of trades and industries, or the supporting documentation required. Banks and financial institutions also have their own rules for ensuring they’re compliant with international standards. It’s important to check that your B2B payment system is compliant in all markets it operates in.

How to process international and cross-border B2B payments

B2B payments can be made internationally via a variety of payment methods. Common ones include online payment systems, Electronic Funds Transfers (EFTs) like Automated Clearing House (ACH) payments, credit and debit cards, corporate cards, cheques, and wire transfers. The method you choose to make a cross-border B2B payment can depend on the transaction amount, how quickly you need to send the payment, and how much security you need.

• Online payment systems enable cross-border B2B payments by supporting multiple currencies and integrating with global payment networks, simplifying transactions for both international clients and suppliers.

• Electronic funds transfers (EFT) can be used for international B2B payments, although they’re typically slower than other methods. But they can still offer a secure, low-cost option for recurring cross-border payments. SEPA, in particular, can be a fast and cost-effective option for B2B payments within the Eurozone. Other examples include ACH, CHAPS, and BACS.

• Credit and debit cards provide a fast, convenient way to make payments and offering fraud protection through secure authorisation processes. With Airwallex’s business debit cards, you can make payments from multiple currencies, with no foreign transaction fees and autoconversion at leading FX rates.

• Corporate cards can be used to manage international B2B expenses as they’re accepted and provide detailed transaction records for expense tracking. They’re better suited to smaller transactions, as they can incur significant interest fees when used for large transactions.

• Cheques are less common for international transactions, but can still be used for cross-border B2B payments. However, they’re slower and can involve additional processing fees or currency conversion delays.

• Wire transfers: remain a popular choice for cross-border B2B payments, offering fast, secure transfers between banks. But, they come with certain limitations, such as regulation difficulties, hidden fees and security risks.

The future of B2B payments and trends to look out for in 2025

When it comes to B2B payments, getting ahead of the curve could allow you to tap into some significant opportunities. Here’s where it looks like the future of B2B payments is heading.

B2B payments will continue to rise

More businesses will continue to digitise their B2B payments by using payment processing companies and services that prioritise faster and more cost-effective international transactions. B2B payment solutions will continue to integrate the best aspects of B2C payment platforms, moving away from traditional paper-based workflows and taking processes online. This development will enable businesses to streamline their financial operations, save time and money, and gain real-time visibility into their B2B cash flows.

ERP and accounting systems will integrate more seamlessly

Online payment services and systems will continue to champion easy integration with existing business systems, such as ERP and accounting software. A financial ecosystem that’s well-integrated can help you reduce errors, while improved visibility and data accuracy can equip you to make more strategic financial decisions.

Embedded B2B payments will become more popular

Embedded B2B payments are payments that you can make without having to leave a seller’s or supplier’s website or app. For example, paying for goods or services directly via an app or website, without being redirected to a third party provider, is an an embedded B2B payment. You can provide a similar, smooth checkout experience to your customers by natively embedding and white-labelling a payment API into your software.

Increased usage of blockchain technology

Blockchain technology offers a range of benefits like increased security, efficiency, and cost-effectiveness. Blockchain payment methods include cryptocurrencies, stablecoins, and blockchain-based payment gateways. Most blockchain transactions are recorded on the blockchain, which is a public ledger, making it easy to track and audit payments.

Make and receive B2B payments

While many platforms focus only on transfers or payment processing, our platform, Airwallex, is one of the few that lets you do both. With one platform, you can make and receive B2B payments quickly and cost effectively, as well as manage multi-currency balances. In other words, we give you the power to operate like a local business, no matter where your suppliers and vendors are located.

With Airwallex, you can open a Business Account that allows you to make and receive payments like a local. You’ll be able to manage multiple currencies and FX, make high-speed transfers, and open accounts with local bank details around the world. And for foreign currency payments using our Borderless Cards, there are 0% foreign transaction fees. These feature translate into real cost savings by consolidating your financial operations and significantly reducing fees and conversion costs.

When it’s time for vendors to pay you, they can do so in their preferred currency and payment methods, whether it’s via credit card, bank transfer, or digital wallet. You can then settle these payments like-for-like, meaning you can receive and settle funds in the same currency. You can then make transfers from the same balances when you need to – no currency conversions needed.

When you do need to convert currencies, you can save up to 80% on FX fees with 60+ trade currencies at market-leading rates.

We’ve designed our B2B payment infrastructure to grow with your business. So, skip the bank queues and paperwork, and instead, tap into our global coverage across currencies and countries to make and receive payments the smart way.