What are B2B payments? A guide for businesses in 2026

Key Takeaways:

• B2B payments are financial transactions between two businesses. They tend to be larger, more complex, and subject to longer payment terms than consumer transactions.

• Common B2B payment methods include bank transfers, virtual cards, ACH transfers, real-time payments, corporate cards, and wire transfers.

• Airwallex lets you make and receive B2B payments from one platform, hold balances in multiple currencies, and pay international suppliers at market-leading FX rates.

This B2B payments guide covers the most common payment methods, how the payment cycle works, and what to look for in a platform.

We'll also show you how you can use Airwallex to manage B2B payments more efficiently, simplify international transactions, and save up to 80% on FX fees compared with traditional banks.

If you're reviewing your current payment process or setting one up for the first time, this is where to start.

What are B2B payments?

B2B payments are financial transactions between two businesses: for example, a company paying a supplier for goods, settling a service invoice, or transferring funds to a contractor.

They differ from B2C payments in their complexity, scale, and the number of people involved at every stage.

The global B2B payments market was valued at US$97.88 trillion in 2025¹, and at that scale, even small inefficiencies in your payment process add up fast.

Understanding those differences helps you choose the right payment methods and build a process that works at scale.

B2B vs B2C payments: key differences

Why B2B payment complexity matters

B2B payments rarely happen in one step. A typical transaction moves through a purchase order (PO), a supplier invoice, an internal approval, the payment itself, and then reconciliation, with different people responsible for each stage.

This complexity creates more room for delays, errors, and cost. A payment method that works for a small consumer purchase can become expensive and slow when applied to high-volume B2B transactions, especially cross-border ones.

How do B2B payment processes work?

Every B2B payment follows the same basic journey: a buyer authorises a payment, the money moves between financial institutions, the supplier receives the funds, and both businesses record the transaction. This behind-the-scenes workflow is known as B2B payment processing.

The method you choose (bank transfer, virtual card, wire transfer, or another option) determines how fast the funds move, how much it costs, and how easy it is to reconcile later.

The B2B payment cycle: step by step

Here is how a typical B2B transaction flows from start to finish:

What makes B2B payment management different from B2C?

A few specific things set B2B payment management apart from consumer transactions.

Technology and automation

Manual B2B payment workflows including spreadsheets, email chains, and one-by-one bank transfers are slow and error-prone. The right payment platform automates key steps and gives your finance team real-time visibility.

Security and fraud prevention

B2B payments are high-value, which makes them a frequent target for fraud. Strong controls, including approval workflows, multi-factor authentication, and real-time fraud detection, are essential.

Cross-border complexity

Paying suppliers in other countries adds layers of cost and delay. Using a platform with local payment rails and competitive FX rates can reduce both.

B2B payment methods in 2026

There are more B2B payment methods available today than ever before. The right choice depends on the transaction size, the destination, how quickly the funds need to arrive, and the total cost involved.

Here’s a quick overview:

The information in this table has been reviewed to be accurate as of 3 July 2026.

1. Online payment platforms

Online payment platforms are increasingly the go-to choice for businesses that want faster, more cost-effective financial operations. They handle both domestic and international payments, integrate with your accounting software, and give your finance team real-time visibility into transactions.

The best platforms support multiple currencies, let you receive and hold funds in different currencies, and pay out using local payment rails.

For example, Airwallex lets you make payments to 120+ countries via local rails with no SWIFT fees. Learn more about Airwallex Payments or sign up now.

2. Bank transfers and electronic funds transfers (EFT)

Bank transfers move money directly between bank accounts. They are widely used for domestic and recurring B2B payments. In different markets, these run on different networks:

• ACH (Automated Clearing House): used in the United States; low-cost and well-suited to recurring domestic payments

• BACS and CHAPS: used in the United Kingdom

• SEPA: used within the Eurozone; fast and cost-effective for euro-denominated payments

• FAST and GIRO: used in Singapore for local SGD transfers

3. Real-time payments

Real-time payment systems allow near-instant transfers, any time of day. In Singapore, the primary system is PayNow, which lets businesses send and receive SGD transfers using a mobile number or Unique Entity Number (UEN).

Singapore also has bilateral real-time payment links with select markets: for example, PayNow–PromptPay for transfers to Thailand, and PayNow–UPI for transfers to India. These links reduce cost and processing time compared to traditional cross-border wires on eligible corridors.

Real-time payments are best suited to urgent or time-sensitive domestic payments. For high-volume international transfers, an online payment platform remains the more practical option.

4. Virtual cards

A virtual card is a digital payment card generated on demand for a specific payment or vendor. Unlike a physical corporate card, there is no plastic involved. Virtual cards can be created instantly, assigned spending limits, and cancelled or locked at any time.

They are particularly useful for:

• SaaS subscriptions: assign one virtual card per subscription so you can track and cancel individual tools without exposing your main account. Learn more about using virtual cards to manage your SaaS subscriptions.

• Online vendor payments: use a single-use card number to reduce fraud exposure

• Controlled team spend: set per-card limits so spending stays within budget by default

Virtual cards settle instantly and generate a clean transaction record, making reconciliation straightforward.

5. Corporate cards

A corporate card is a payment card issued to employees for work-related expenses. All transactions are tied to the business entity rather than the individual cardholder, making it easier to track and control spend across your team.

Corporate cards work well for day-to-day expenses, but are generally less suitable for large supplier payments because many suppliers prefer bank transfers or charge card acceptance fees. If balances aren't paid in full, interest charges may also apply.

Airwallex lets you issue corporate cards in 60+ markets, with no international transaction fees when you’re spending from your held balances.

6. Credit and debit cards

Many businesses use credit or debit cards from networks like Visa, Mastercard, and Amex for B2B payments. They are easy to use, process quickly, and can earn rewards or cashback.

The downside is cost. Card processing fees are charged to the merchant on every transaction, which adds up on high-value B2B payments. For large supplier payments, bank transfers or online payment platforms are typically more cost-effective.

7. Wire transfers

A wire transfer is an electronic transfer of funds between banks, typically sent via the SWIFT network or Fedwire. Wire transfers are a reliable way to send large sums, and are widely accepted across borders.

The drawbacks are cost and speed. Banks charge outward transfer fees, and SWIFT payments can also incur intermediary bank fees deducted in transit. International wires typically take one to five business days, which is slower than online payment platforms that use local rails.

8. Cheques

Paper cheques are still used in some B2B contexts, particularly in markets where digital alternatives are not yet standard. They leave a physical paper trail and are always traceable.

The significant downsides are processing time and security risk. In 2025, 58% of organisations globally reported that they had experienced cheque fraud, making cheques the payment method most frequently impacted by fraud.²

Despite long-standing awareness of this risk, cheques continue to present persistent vulnerabilities.

9. Cash

Few businesses use cash for B2B payments beyond small, in-person transactions. Cash is inconvenient at scale, offers no tracking, and carries security risks. It is not suitable for cross-border payments.

What to look for in a B2B payment platform

Choosing the right platform shapes how fast your suppliers get paid, how much international transfers cost, and how much time your finance team spends on manual work each week.

1. Cross-border payment support and multi-currency capabilities

Your platform should let you pay suppliers in their local currency, without forcing a conversion every time. Look for a platform that lets you hold balances in multiple currencies, receive funds from international clients, and pay out in the right currency directly from those balances.

Competitive, transparent FX rates are also essential: hidden FX markups on international transfers can quietly erode your margins on every payment.

Airwallex lets you hold 20+ currencies, and when you need to convert, you get access to competitive FX rates that save you up to 80% on FX fees as compared to traditional banks.

2. One place to send and receive payments

Your platform should handle both sides of your payment operations (sending payments to suppliers and receiving payments from clients) without requiring separate tools or additional bank accounts in each market.

Look for a platform that gives you local bank details in major currencies, so your international clients can pay you as if you were a local business. This removes friction for them and gets funds into your account faster.

3. Automation that reduces manual work

Manual payment processes such as email chains, one-by-one bank transfers, and spreadsheet reconciliation slow your team down and introduce errors. A good platform automates key steps in your accounts payable workflow, including invoice capture, approval routing, and payment execution.

For a detailed walkthrough of how AP automation works in practice — including what it does to cost and processing time — see our guide to vendor payment automation.

4. Integration with your accounting and ERP software

Your payment platform should connect directly to your existing accounting software: Xero, QuickBooks, NetSuite, or similar. Native two-way integration means transaction data flows automatically into your financial records after every payment, without manual exports or matching.

This speeds up your payment cycle, reduces reconciliation errors, and makes month-end close faster. When evaluating a platform, confirm whether the integration is a native two-way sync or just a one-way CSV export.

5. Expense management support

Look for a platform that lets you manage and track business expenses in one place, alongside your payments. When expense management is built into the same system as your payments, your team stops switching between tools and your finance team gets a clearer picture of total spend.

This becomes especially important as your team grows or your business operates across multiple markets.

Should you automate your B2B payments?

Manual payment processes often work well when payment volumes are low. But as your business grows, they become harder to manage.

Logging into bank portals, entering payment details one by one, and chasing invoice approvals by email all take time, especially when you're processing dozens of payments each month.

Delays usually occur at two points: 

• Approvals, where invoices sit waiting for sign-off

• Payment execution, where each transfer is made individually

As supplier numbers increase or your business expands into new markets, those delays become more noticeable. A process that takes an hour a week for ten invoices can easily take half a day for fifty.

The benefits of automation are even greater if you're paying suppliers in multiple currencies.

Instead of manually processing every international transfer, finance teams can batch payments, reduce administrative work, and maintain a complete audit trail from invoice through to reconciliation. The result is a faster, more scalable accounts payable process with fewer manual errors.

For a full walkthrough of how invoice capture, approval routing, batch payments, and accounting reconciliation work together, see our guide to vendor payment automation.

How to process cross-border B2B payments

Cross-border B2B payments involve additional layers of complexity compared to domestic transfers. Understanding them helps you choose the right method and avoid unnecessary cost and delay.

Three things change when a payment crosses a border:

• Currency: the payment usually needs to be converted, which introduces FX costs and rate risk

• Routing: international transfers often pass through correspondent banks, each of which can add fees and processing time

• Compliance: each country has its own AML, KYC, and documentation requirements, which your platform must handle

Choosing the right method for international payments

The same payment methods covered in Section 4 apply to cross-border transfers — but not all of them perform equally well at the international level.

Wire transfers via SWIFT are widely used and accepted, but come with higher fees and slower processing times due to correspondent bank chains. Online payment platforms that route via local payment rails bypass those chains, delivering funds faster and at lower cost.

For Singapore businesses, real-time payment links can reduce cost and processing time on select corridors. PayNow–PromptPay connects Singapore to Thailand, and PayNow–UPI connects Singapore to India, allowing near-instant transfers on those routes without SWIFT intermediary fees.

For a deeper look at how cross-border payments work and what to look for in a provider, see our guide to cross-border payments.

The best way to send B2B payments

Airwallex lets you send B2B payments via local rails, batch pay suppliers across multiple currencies in one run, and automate your full accounts payable cycle, with FX rates that save you up to 80% compared to traditional banks.

Here’s what you get with Airwallex:

Send via local rails, not SWIFT

Airwallex routes 94% of transactions through local payment rails, with no SWIFT fees. 93% of transfers arrive on the same working day, and 45% arrive immediately.

Batch pay across multiple currencies in one run

Instead of logging into a bank portal and sending transfers one by one, Airwallex lets you batch multiple supplier payments into a single run, regardless of currency or destination.

Automate your full AP cycle

Airwallex Bill Pay automates the full accounts payable workflow, from invoice capture and approval routing through to batch payment execution and automatic reconciliation into Xero, QuickBooks, or NetSuite. Every invoice, approval, and payment stays linked in a single audit trail.

Corporate cards with no foreign transaction fees

Your team can pay overseas vendors with Airwallex corporate cards, with 0% foreign transaction fees when spending from held balances and per-card spending limits you control.

MAS-licensed, with funds held in segregated accounts

Airwallex (Singapore) Pte. Ltd. holds a Major Payment Institution licence from MAS. Your funds are held separately from Airwallex's operational funds in accordance with MAS safeguarding requirements.

Frequently asked questions (FAQs)

What are B2B payments?

B2B payments are financial transactions between two businesses: for example, a company paying a supplier for goods, settling a service invoice, or transferring funds to a contractor. Unlike consumer payments, B2B payments typically involve larger amounts, longer payment terms, and multiple approval steps before funds are released.

What is the most common B2B payment method?

Bank transfers and electronic funds transfers (EFT) remain the most widely used B2B payment methods globally, largely because they are low-cost and work well for recurring domestic payments. However, online payment platforms are increasingly replacing traditional bank transfers for international B2B payments, offering faster settlement, lower FX costs, and better visibility into transactions.

How long do B2B payments take?

It depends on the method. Domestic real-time payments — such as PayNow in Singapore — settle instantly. ACH and EFT transfers typically take one to four business days. International wire transfers via SWIFT can take one to five business days, depending on the number of correspondent banks involved. Platforms that route via local payment rails can significantly reduce international settlement times.

What is the difference between B2B and B2C payments?

B2B payments involve transactions between two businesses; B2C payments involve a business and an individual consumer. The key differences are transaction size, payment terms, and complexity. B2B payments are typically larger, subject to net 30, 60, or 90 day terms, and require purchase orders, invoices, and multi-step approvals. B2C payments are usually immediate and involve a single decision-maker at checkout.

How do I reduce the cost of international B2B payments?

The two main cost drivers for international B2B payments are FX markups and SWIFT intermediary fees. You can reduce both by using a payment platform that offers transparent FX rates and routes transfers via local payment rails instead of SWIFT. Holding balances in the currencies you pay most frequently also helps, as it avoids forced conversion on every transaction. Airwallex routes 94% of transactions through local rails and offers FX rates that save up to 80% compared to traditional banks.

What should I look for in a B2B payment platform?

Look for a platform that supports multi-currency accounts, local payment rails for your key corridors, and native integration with your accounting software. Approval workflows, batch payment capabilities, and real-time transaction visibility are also important — especially as your supplier list grows. In Singapore, confirm the platform holds a Major Payment Institution licence from MAS, which requires client funds to be held in segregated accounts.

Sources:

1. fortunebusinessinsights.com/b2b-payments-market-108853

2. afponline.org/training-resources/resources/survey-research-economic-data/Details/payments-fraud

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.