Cross-border payment solution: a guide for UK businesses

Key takeaways

• Cross-border payment solutions are financial services that help individuals and businesses send and receive money around the world. Depending on which one you choose, a cross-border payment solution can help you cut your FX costs, speed up settlement, and make multi-currency operations simpler.

• You need to evaluate providers based on the "total cost of ownership" (FX markup + transfer fees + hidden charges combined), payment rail coverage, API depth, compliance licences, and how well they fit your business type.

• Airwallex offers interbank FX rates, payouts to 200+ countries (90%+ via local rails), Global Accounts in 20+ currencies, and 60+ licences globally, all on one platform built for scaling businesses.

A cross-border payment solution is the platform or service your business uses to send, receive, and manage payments across different countries and currencies.

Picking the right one matters because the differences between providers, in pricing, speed, coverage, and features, can mean thousands saved or lost on every transaction, which can make or break growing businesses.

Most businesses already know they need a solution for international payments. The harder part is comparing providers when FX markups are buried in the fine print, settlement times vary wildly by corridor, and "global coverage" can mean anything from 20 countries to 180.

This guide breaks down how cross-border payments work, what types of solutions exist, and what to look for when you're ready to choose.

How cross-border payments work

Before you can compare providers properly, it helps to understand how cross-border payments move money. Once you know the mechanics, it becomes a lot clearer why some solutions are slow and expensive while others settle in hours at a fraction of the cost.

When a business sends money internationally, the payment doesn't move straight from one account to another. It usually goes through a chain of intermediaries, and each step in that chain adds time and cost. For a deeper dive, see our guide on what cross-border payments are and how they work.

The traditional route: Correspondent banking and SWIFT

SWIFT is the messaging network most traditional banks use to send payment instructions across borders. But here's the key point: SWIFT isn't a payment rail. It's a communication system. The money itself moves through correspondent banks, intermediary institutions that hold accounts with each other and pass funds along the chain.

Think of it like a relay race. Your payment gets handed off between three or four banks, and each one takes a fee and adds a day before it reaches the finish line. A £10,000 payment from London to a supplier in Bangkok might go through two or three intermediary banks, with each one deducting a fee, before it arrives 3–5 days later as a different amount than expected.

This unpredictability is one reason the Bank of England identifies high cost as one of four major challenges in cross-border payments.¹ You often don't know the final amount until the payment lands.

The modern alternative: Local payment rails and direct connections

Modern fintech platforms cut out the middle steps by connecting directly to local payment networks, systems like Faster Payments in the UK, SEPA in Europe, or their equivalents in other markets. Instead of routing through correspondent banks, your payment enters the destination country's domestic system and settles as if it were a local transfer.

The result is faster settlement and lower costs. At Airwallex, roughly 95% of transfers arrive within a few hours or the same day, and approximately 52% are instant. Understanding the difference between these international payment methods is key when you're working out which solution fits your business.

Types of cross-border payment solutions

Not all cross-border payment providers work the same way. Before you start comparing features, it helps to understand the main categories of solutions out there and which type fits your business. For a detailed look at the major players, see our guide to cross-border payment providers.

Traditional banks vs fintech platforms

The comparison most businesses end up making is between their existing bank and a dedicated fintech platform. And the differences are significant.

Traditional banks typically mark up exchange rates by 2–5% above the interbank rate, which is the wholesale rate banks charge each other. On a £50,000 payment to a euro supplier, a 3% markup costs you £1,500 in hidden FX fees before you've even paid a transfer charge. Fintech platforms often offer rates within 1% of interbank, and sometimes at interbank itself, which could cut that same cost to under £500.

Speed is different too. Bank transfers via SWIFT can take 2–5 business days, and intermediary deductions can be unpredictable. Platforms using local payment rails often settle the same day or faster. Banks also tend to make you manage separate relationships in each market, while fintech platforms let you operate across dozens of countries from a single account.²

Matching solution type to your business

The right solution depends on how your business operates internationally:

• SMBs with occasional international payments: Focus on transparent pricing and ease of use. You don't need complex treasury features, but you shouldn't overpay on FX.

• Scaling eCommerce businesses: Look for providers with local acquiring, like-for-like settlement (receiving payments in the same currency you pay out), and checkout integrations. If you're accepting payments in 10+ currencies, forced conversions eat into margins fast.

• Enterprises with multi-entity treasury: Prioritise multi-currency accounts, API depth, and consolidated reporting across entities. You need visibility and control, not just payment execution.

• Marketplaces paying global sellers: Focus on payout coverage, compliance automation (W-8/W-9, DAC7), and APIs that can handle high-volume disbursements without manual intervention.

What to look for in a cross-border payment solution

Once you know what type of solution fits your business, the next step is comparing specific providers. We've covered the most important criteria to consider, below.

Total cost of ownership

Advertised fees don't tell the full story. A provider might promote "no transfer fees" while hiding a 2% FX markup in the exchange rate. If you want to compare providers fairly, you need to work out the total cost of each transfer.

Total cost includes:

• FX markup or spread (the difference between the rate you get and the interbank rate)

• Flat transfer fees

• Receiving fees charged by the destination bank

• Intermediary bank fees (common with SWIFT transfers)

• Volume-based pricing tiers

How to calculate your true cost. Compare the amount that leaves your account with the amount that arrives in your recipient's. The difference, as a percentage, is your total cost. On a £10,000 transfer, if £9,700 arrives, you've paid 3%, regardless of what the provider's fee schedule says.

Speed of settlement and payment rails

How quickly funds settle depends on the payment rail, the currencies involved, and the provider's setup. Ask potential providers: "How quickly do funds settle in your top five corridors? Do you use local rails or SWIFT for each?"

Local payment rails, like Faster Payments, SEPA, or domestic ACH equivalents, usually settle the same day or faster. SWIFT transfers can take 2–5 business days and the timing is less predictable. If your business makes regular payments, that difference adds up: faster settlement means better cash flow visibility and happier suppliers.

If you're paying multiple suppliers at once, look for batch payment capabilities. Processing 200 payments one by one is a drain on your finance team's time. Doing them in a single action isn't.

Currency coverage and multi-currency accounts

Check that your provider supports the currencies you need today and the markets you plan to expand into. But coverage on its own isn't enough. You also need a multi-currency account that lets you hold and pay out in multiple currencies without forced conversion.

Like-for-like settlement means you receive payments in one currency and pay out in that same currency without converting back and forth. If you collect euros from European customers and pay euro suppliers, forced conversion to GBP and back costs you twice. Global Accounts with local bank details let you receive funds as if you had a local presence, which is useful when you're collecting from marketplaces, customers, or partners who prefer paying domestically.

Do you need to offer Payment Links so customers can pay using their preferred method? Or a Chilean pesos checkout experience? Make sure your provider's payment method coverage matches your commercial requirements.

FX rates and transparency

The interbank rate is the rate banks charge each other. Think of it as the wholesale price before the retail markup. When your provider offers rates close to interbank, you keep more of every payment. Providers offering market-leading rates can save businesses up to 80% compared to traditional bank FX margins.

Beyond the rate itself, look for transparency. Can you see the exact markup before you confirm a transfer? Some providers also offer rate alerts, which notify you when chosen currency pairs reach your specified rates, so you can time larger transfers strategically. For high-volume enterprises, forward contracts let you lock in rates for future payments and hedge against currency volatility.

API integration and developer tools

If you're paying 200 suppliers monthly across 15 countries, you don't want to handle each payment manually. An ERP integration lets your systems trigger payments automatically, with real-time status updates flowing back for reconciliation.

Look for providers with robust APIs that support batch processing, webhooks for payment status updates, and pre-built integrations with your accounting or ERP systems. APIs and pre-built elements cut developer effort and help you unlock more global revenue without rebuilding your setup.

Questions to ask: What's the API documentation like? Are there SDKs in your team's preferred languages? How quickly can you get a sandbox environment to test?

Compliance and licences

Your provider must hold licences in every market where you send or receive payments. An experienced provider will also have deep knowledge of cross-border payment regulations, risks, and regulatory compliance requirements in local markets, along with local regulatory relationships.³

Beyond licences, ask how the provider handles KYC/AML screening and local tax reporting requirements. If you're paying contractors or sellers globally, automated tax compliance (W-8/W-9 collection, DAC7 reporting) saves significant manual work. Complying with local regulations doesn't have to be complex when your provider handles the heavy lifting.

Security, reliability, and support

Your funds, data, and privacy need to be protected. Look for providers with PCI DSS Level 1 certification and SOC 1 and SOC 2 compliance. These are the industry standards for payment security and operational controls.

Most providers offer automated transaction monitoring. The better ones use machine learning to flag potentially fraudulent transactions before they go through, which adds a layer of protection beyond basic screening.

Check guaranteed uptime, especially if maximum availability is critical to your operations. And ask about customer support: is it 24/7? Can you reach a human when something goes wrong?

Bringing your tools together

Many cross-border payment providers have expanded beyond multi-currency payments. Corporate Cards, Expense Management, Bill Pay, and accounting and eCommerce software integrations are now offered alongside core payment functionality.

Instead of logging into four different platforms to manage payments, cards, expenses, and reconciliation, look for a provider that brings those together. Consolidation cuts manual work, improves visibility, and means fewer vendor relationships to manage. The best providers also integrate with the tools you already use, like Xero, QuickBooks, NetSuite, Shopify, and more, so your data flows automatically.

Cross-border payment solution evaluation checklist

Money keeps your business moving, and how you handle it can make or break your success. Use this checklist as a quick reference when comparing providers:

• Total cost: Calculate the full cost per transfer (FX spread + fees + intermediary charges), not just the advertised rate.

• Settlement speed: Ask how quickly funds settle in your key corridors and whether the provider uses local rails or SWIFT.

• Currency coverage: Confirm support for the currencies you need now and the markets you're expanding into.

• Multi-currency accounts: Check whether you can hold and pay out in multiple currencies without forced conversion.

• FX transparency: Verify you can see the exact markup before confirming transfers.

• API and integrations: Assess API depth, pre-built integrations, and how easily the solution connects to your existing systems.

• Compliance: Confirm the provider holds licences in every market you operate in and handles local tax requirements.

• Security: Look for PCI DSS Level 1 certification, SOC compliance, and fraud prevention capabilities.

• Reliability: Check guaranteed uptime and support availability.

• Consolidation: Consider whether the provider offers complementary features (cards, expense management, bill pay) that reduce your tool count.

How Airwallex helps you move money across borders

Finding the right cross-border payment solution gives you peace of mind that your transactions will stay affordable, fast, and protected. Here's how Airwallex addresses the criteria we've covered.

Built for businesses that operate across borders

Airwallex is an all-in-one financial platform purpose-built for businesses trading internationally. We combine payments, treasury, cards, and spend management on a single platform, so you're not juggling multiple providers to run your global operations.

• Competitive FX rates: We offer rates at or close to the interbank rate, helping businesses save up to 80% compared to traditional bank FX margins.

• Fast settlement via local rails: Over 90% of our payouts use local payment rails, which means roughly 95% of transfers arrive within hours or the same day, and approximately 52% are instant.

• Global coverage: Send payments to 200+ countries and territories in 130+ currencies. Hold funds in 20+ currencies with Global Accounts that include local bank details.

• Compliance built in: We hold 60+ licences globally, so you can operate with confidence across markets.

• API-first architecture: Our APIs let you automate payments, embed financial services, and integrate with your existing systems. We also offer 350+ pre-built integrations with accounting, ERP, and eCommerce platforms.

• Everything in one place: Beyond payments, Airwallex offers Corporate Cards, Expense Management, Bill Pay, and more, reducing the number of tools your finance team needs to manage.

Whether you're scaling into new markets, paying global suppliers, or collecting from customers worldwide, Airwallex gives you the setup to move money without friction.

Open an account in minutes and see how Airwallex can simplify your cross-border payments.

Frequently Asked Questions (FAQs)

What is a cross-border payment solution?

A cross-border payment solution is a platform or service that lets businesses send, receive, and manage payments across different countries and currencies. Modern solutions differ from traditional bank wires because they use local payment rails and offer multi-currency accounts, which typically means faster settlement and lower costs.

How much do cross-border payments cost?

The total cost depends on three things: the FX markup (the difference between your rate and the interbank rate), the transfer fee, and any intermediary charges. Traditional banks typically mark up FX by 2–5%, while fintech platforms often charge under 1%. To find your true cost, compare the amount sent with the amount received.

How long do cross-border payments take to settle?

Settlement times range from seconds to five business days, depending on the payment rail, currencies involved, and provider. Payments via local rails typically settle the same day or faster, while SWIFT transfers through correspondent banks can take 2–5 business days with less predictable timing.

What's the difference between SWIFT and local payment rails?

SWIFT is a messaging network that routes payment instructions through intermediary banks. It's not a payment rail itself. Local payment rails connect directly to a country's domestic payment system and bypass intermediaries. The result is that local rails are typically faster (same-day vs 2–5 days) and cheaper (no intermediary fees).

Sources and references

1. https://www.bankofengland.co.uk/payment-and-settlement/cross-border-payments

2. https://www.wearepay.uk/what-we-do/payment-systems/

3. https://www.ukfinance.org.uk/policy-guidance