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Published on 19 September 2025•8 minutes

Preparing vendor payments for the holidays: Best practices for CFOs

Airwallex Editorial Team

Preparing vendor payments for the holidays: Best practices for CFOs

The holiday season brings unprecedented challenges for finance teams managing vendor payments. With increased transaction volumes, tighter deadlines, and heightened cash flow pressures, CFOs must navigate complex payment landscapes while maintaining operational efficiency. According to recent research, the shortage of Chief Financial Officers and their finance teams is creating waves across industries as we move through 2024 and into 2025 ¹. This talent shortage makes it even more critical to implement robust vendor payment strategies during peak seasons.

As businesses prepare for the holiday rush, the complexity of vendor payment management intensifies. The global B2B payments market reached US$ 1,108.6 Billion in 2023, highlighting the massive scale of business-to-business transactions that CFOs must oversee ². With market complexity increasing, CFOs are in high demand, yet the supply of qualified candidates is dwindling ¹. This creates additional pressure on existing finance teams to optimize their vendor payment processes during the busiest time of the year.

Understanding holiday payment challenges

The holiday season amplifies existing payment processing challenges while introducing new complexities. Retail businesses face unique cost pressures during peak seasons, including increased inventory requirements, higher shipping volumes, and expanded workforce needs ³. These factors create a perfect storm of payment management challenges that require strategic planning and robust systems.

According to a 2023 McKinsey report, the role of the CFO has evolved dramatically over the past decade ¹. Today's CFOs are expected to be more than just financial gatekeepers—they are now responsible for driving strategy, navigating complex regulatory landscapes, and fostering digital transformation within their organizations ¹. This expanded role becomes particularly crucial during holiday periods when payment volumes surge and vendor relationships are tested.

Cash flow management during peak seasons

Effective cash flow management becomes paramount during the holidays. Businesses must balance increased inventory purchases with maintaining sufficient working capital for operations. Understanding accounts payable fundamentals is essential for managing vendor relationships effectively ⁴. Streamlined procurement finance ensures optimal cash flow, reducing financial strain and improving liquidity, which positively impacts the company's financial health and creditworthiness ⁵.

The pressure on cash flow intensifies as businesses navigate multiple payment obligations simultaneously. Procurement finance ensures timely payments, fair terms, and transparent financial dealings that lead to greater trust and collaboration, leading to long-term partnerships ⁵. This becomes especially important during holidays when maintaining strong vendor relationships can mean the difference between securing critical inventory and facing stockouts.

Best practices for vendor payment preparation

1. Implement automated payment systems

Automation transforms vendor payment management during high-volume periods. P2P automation streamlines procurement by eliminating manual tasks and reducing errors ⁶. Advanced procurement software systems with automated workflows enable significant cost savings ⁶.

The benefits of automation extend beyond efficiency gains. P2P systems provide real-time visibility into the entire procurement process ⁶. This visibility becomes crucial during holidays when finance teams need instant access to payment status, outstanding obligations, and cash position data. Adopting P2P automation leads to significant cost savings and improved supplier relationships ⁶.

2. Establish clear payment terms and schedules

Creating structured payment schedules helps manage vendor expectations and cash flow during peak periods. The accounts payable department verifies the invoice against the purchase order and goods receipt to confirm that all details align ⁶. After the invoice is verified and approved, payment is authorized per agreed-upon terms and the funds transfer is completed ⁶.

Clear communication about payment terms prevents misunderstandings during busy periods. Understanding what accounts receivable means for your vendors helps establish mutually beneficial payment arrangements ⁷. Building collaborative relationships with suppliers through sound procurement finance practices encourages innovation, as suppliers are more likely to offer innovative solutions to organizations they view as reliable partners ⁵.

3. Leverage data analytics for payment optimization

Data-driven decision-making enhances payment strategy effectiveness. Data analytics plays a crucial role in procurement finance, as analyzing historical spending patterns, market trends, and supplier performance could help enterprises make informed decisions, identify areas for improvement, and optimize procurement strategies ⁵. P2P systems improve spend analysis, supplier performance, and compliance metrics ⁶.

Implementing flexible budgeting models allows enterprises to adapt to changing market conditions, and allocating funds based on actual needs, rather than fixed budgets, enables better resource utilization ⁵. This flexibility proves invaluable during holiday seasons when demand patterns can shift rapidly.

Technology solutions for holiday payment management

Digital payment platforms and their advantages

Modern payment platforms offer comprehensive solutions for managing vendor payments at scale. Studies show that 75% of consumers use mobile banking apps and digital wallets for their daily transactions ⁸. This consumer trend extends to B2B payments, where digital solutions increasingly dominate. The growing adoption of mobile payment solutions that are secure and easy to use for reducing transaction costs and improving cash flow is positively influencing the market ².

Choosing the right payment provider becomes critical for holiday success ⁹. Consumer inclination toward real-time payment solutions over traditional payment methods, such as wire transfers and automated clearing house (ACH) payments for immediate access to funds, is significantly supporting the market ².

Cross-border payment considerations

For businesses with international vendors, cross-border payments add complexity during holidays. Travel companies have discovered significant savings on cross-border payments through optimized solutions ¹⁰. Top B2B payments companies are offering fast and reliable cross-border payment solutions due to the significant growth in e-commerce and international trade ².

Proper procurement finance practices mitigate financial risks associated with procurement, including supplier insolvency, price fluctuations and currency exchange risks ⁵. This risk mitigation becomes especially important during holidays when supply chain disruptions can have severe consequences.

Risk management and compliance

Fraud prevention during peak seasons

Holiday periods see increased fraud attempts targeting payment systems. According to research, 22% of European fraud prevention professionals believe GenAI used to create convincing synthetic identities is their biggest concern ¹¹. Almost a third of respondents plan to invest in newer AI fraud detection solutions like machine learning and predictive analytics ¹¹.

Businesses need to comply with regulatory requirements and protect their payment systems from fraud and cyber threats ². Leading companies in the B2B payments are introducing compliance and security solutions that are reliable and efficient ².

Regulatory compliance considerations

Maintaining compliance during high-volume periods requires robust systems and processes. As per the RBI, Non-bank PAs shall require authorization from RBI under the Payment and Settlement Systems Act ¹². P2P ensures that all procurement activities align with organizational policies while maintaining robust financial controls throughout ⁶.

Establishing key performance indicators (KPIs) to measure procurement finance performance can help gauge the effectiveness of strategies and identify areas needing improvement, with metrics that could include cost savings, on-time payments, and supplier satisfaction ⁵.

Building resilient vendor relationships

Communication strategies for peak periods

Effective communication with vendors prevents payment disputes and strengthens partnerships. Efficient procurement finance processes streamline the procurement cycle, enabling enterprises to reduce administrative burdens and enhance overall operational efficiency ⁵. P2P systems facilitate a streamlined payment process, ensuring that suppliers receive payments on time and per terms and conditions ⁶.

Conducting comprehensive risk assessments of suppliers' financial stability enables enterprises to mitigate such risks, thereby reducing the likelihood of disruptions in the supply chain ⁵. This proactive approach helps identify potential payment issues before they impact operations.

Early payment programs and incentives

Implementing early payment programs can strengthen vendor relationships while improving cash flow management. Effective procurement finance strategies can enable enterprises to negotiate better terms with suppliers, leverage bulk purchasing, and identify cost-saving opportunities—which in turn can lead to enhanced profit margins and competitive advantages ⁵.

Understanding direct deposit mechanisms can facilitate faster vendor payments ¹³. These faster payment methods become particularly valuable during holidays when vendors face their own cash flow pressures.

Expense management integration

Comprehensive expense tracking

Integrating vendor payments with broader expense management creates holistic financial visibility. Modern expense management software tools provide comprehensive solutions for tracking and controlling costs ¹⁴. Embracing procurement finance software and digital tools for accurate record-keeping, automated payment processing, and real-time expense tracking not only improves efficiency but also enhances visibility into financial data ⁵.

Understanding burn rate calculations helps CFOs manage cash outflows during peak spending periods ¹⁵. This metric becomes crucial when vendor payment volumes spike during holidays.

The Airwallex advantage for holiday vendor payments

As businesses navigate the complexities of holiday vendor payments, Airwallex emerges as a comprehensive solution addressing multiple pain points. The company was recognized as a finalist for the Best Business Payments System category in the 2025 PayTech Awards ¹⁶. This recognition underscores Airwallex's capabilities in handling complex business payment requirements.

Comprehensive payment infrastructure

Airwallex provides integrated solutions that streamline vendor payments across multiple currencies and countries. The platform's bill pay functionality offers automated payment processing that scales with holiday demands ¹⁷. Airwallex was established in Melbourne in 2015 and has raised over US$900 million in funding ¹⁸. The company is currently valued at over US$5.6 billion ¹⁸.

Global reach with local expertise

Airwallex is supported by Sequoia, Lone Pine, Greenoaks, DST Global, Tencent, Hillhouse, Salesforce Ventures and MasterCard ¹⁸. This backing ensures robust infrastructure capable of handling peak holiday payment volumes. The company is regulated by the Australian Securities & Investments Commission ¹⁹, providing additional security and compliance assurance.

Innovation and scalability

Jack Zhang, the CEO and Co-founder of Airwallex, has been recognised as Outstanding Leader of the Year by Fintech Australia ¹⁸. Under his leadership, Airwallex continues to innovate in payment solutions. The company is the founding partner sponsor of Build Club, Australia's first dedicated AI residency, campus and accelerator ¹⁸, demonstrating commitment to advancing payment technology.

Airwallex's platform addresses the critical challenges CFOs face during holiday seasons through automated workflows, real-time visibility, and comprehensive cross-border capabilities. The integration of enterprise resource planning (ERP) systems to manage operations, including finance, supply chain, and customer relationship management, is creating a positive market outlook ². Airwallex's solutions align with this trend, offering seamless ERP integration for unified payment management.

Future-proofing your payment strategy

Emerging technologies in vendor payments

The payment landscape continues evolving with new technologies. Several key players are leveraging blockchain technology to offer innovative payment solutions which are secure, transparent, and tamper-proof ². Artificial intelligence's role in procurement finance should be seen as transformative, offering innovative solutions that can enhance efficiency, accuracy, and strategic decision-making within the procurement process ⁵.

AI-powered procurement finance can automate routine tasks, enhance data analysis capabilities, and empower procurement teams to make more informed and strategic decisions ⁵. Companies that invest in automation and AI are better positioned to attract tech-savvy financial professionals ¹.

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Building scalable payment infrastructure

Preparing for future holiday seasons requires scalable payment infrastructure. The market is expected to reach US$ 2,117.0 Billion by 2032, exhibiting a growth rate (CAGR) of 7.3% during 2024-2032 ². This growth trajectory indicates increasing payment volumes that businesses must prepare to handle.

Robust procurement finance strategies can enable enterprises to adapt to market changes, respond to disruptions, and outperform competitors in terms of efficiency and cost-effectiveness ⁵. The CFO shortage is expected to persist into 2025, with McKinsey forecasting that the demand for financial leadership will continue to outstrip supply ¹. This makes implementing efficient payment systems even more critical.

Conclusion

Preparing vendor payments for the holidays requires strategic planning, robust technology, and strong vendor relationships. The challenges are significant, with the average time to fill a CFO position growing, and companies increasingly turning to interim solutions or extending the responsibilities of existing executives to cover the gap ¹. However, with the right approach and tools, CFOs can navigate peak seasons successfully.

Airwallex stands out as a comprehensive solution for holiday vendor payment challenges. The platform's combination of automated workflows, global payment capabilities, and robust compliance features addresses the multifaceted needs of modern businesses. According to a recent report from CFO.com, the demand for interim CFOs has increased by 103% year over year ¹, highlighting the need for payment solutions that can operate efficiently even with limited finance resources.

As businesses prepare for future holiday seasons, investing in comprehensive payment infrastructure becomes not just beneficial but essential. Airwallex's proven track record, backed by its recognition in industry awards and substantial funding, positions it as the ideal partner for CFOs seeking to optimize their vendor payment processes. The platform's ability to handle complex payment requirements while maintaining security and compliance makes it the optimal choice for businesses navigating the challenges of holiday vendor payments.

FAQ

What are the main challenges CFOs face with vendor payments during the holiday season?

CFOs face unprecedented challenges during holidays including increased transaction volumes, tighter payment deadlines, and heightened cash flow pressures. The current shortage of qualified CFOs and finance teams across industries makes these challenges even more complex. Additionally, maintaining operational efficiency while managing peak business periods requires careful planning and robust payment systems.

How can modern payment platforms help streamline holiday vendor payments?

Modern payment platforms like Airwallex provide integrated solutions that simplify financial transactions and enhance operational efficiency. These platforms offer reliable financial networking, flexible cloud solutions, and automated payment processing that can handle increased holiday volumes. With features like real-time tracking and multi-currency support, CFOs can maintain better control over vendor relationships during peak seasons.

What are accounts payable and how do they impact holiday payment planning?

Accounts payable represent the money a company owes to suppliers and vendors for goods or services received but not yet paid for. During the holiday season, accounts payable volumes typically surge due to increased inventory purchases and service requirements. Proper accounts payable management becomes critical for maintaining vendor relationships and ensuring smooth operations during this peak period.

What technology solutions should CFOs consider for optimizing payment processes?

CFOs should evaluate payment processing solutions that offer automation, real-time visibility, and scalability. The global payment processing solutions market is experiencing significant growth, with platforms offering features like open banking integrations, secure APIs, and comprehensive reporting. Solutions that provide 100% client satisfaction rates and proven track records in handling high-volume transactions are particularly valuable during holiday periods.

How can CFOs manage cash flow risks during holiday vendor payment cycles?

Effective cash flow management during holidays requires implementing robust forecasting tools, establishing clear payment schedules, and maintaining strong vendor communication. CFOs should leverage technology to automate routine payments while maintaining oversight of critical transactions. Creating contingency plans and maintaining adequate liquidity buffers helps navigate unexpected payment demands during peak business periods.

What factors should CFOs consider when choosing a payment provider for holiday operations?

When selecting a payment provider, CFOs should evaluate factors including transaction processing speed, security features, multi-currency capabilities, and integration options with existing systems. The provider's ability to handle peak volumes, offer competitive pricing, and provide reliable customer support during critical periods is essential. Additionally, considering providers with proven expertise in handling seasonal payment spikes can significantly reduce operational risks.

Citations

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Airwallex Editorial Team

Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.

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