What are B2B payments? How they work and what to look for

Key takeaways

• B2B payments are financial transactions between two businesses for goods, services, or intellectual property. They're usually larger, more complex, and involve longer payment cycles than consumer payments.

• Common B2B payment methods include online payment platforms, bank transfers, electronic fund transfers (like ACH and BACS), credit and debit cards, corporate cards, cheques, and trade credit.

• Airwallex lets you make and receive B2B payments globally from one platform, with multi-currency accounts, competitive FX rates, and transfers that arrive same day or faster in most cases.

If your business pays suppliers, contractors, or vendors, you're making B2B payments. These transactions are usually larger and more complex than consumer payments. They often involve multiple approvals, negotiated payment terms, and cross-border factors that can eat into your margins if you're not careful.

With the B2B payments market set to reach US$174.38 trillion by 2030, getting your payment processes right matters more than ever. In this guide, we'll look at what B2B payments are, how they differ from consumer payments, the most popular payment methods in 2026, the challenges you'll run into, and what to look for when choosing a payment platform.

What are B2B payments?

B2B payments are financial transactions between two businesses, usually where funds are exchanged for goods, services, or intellectual property.

Say you run a clothing brand and you're ordering fabric from a supplier in Portugal. The payment you make for that order is a B2B payment. Or say you're a UK retailer paying a European wholesaler for stock. That's another B2B payment. These payments happen all the time across global supply chains, from raw materials to finished products to professional services.

Unlike B2C payments, which are usually smaller, more frequent, and focused on the end consumer, B2B payments tend to be bigger and more complex. They often involve approval from multiple stakeholders, compliance and security checks, contract negotiations, and currency and payment schedules, most of which the buyer and supplier need to work through together.

When your B2B payment process works well, vendors get paid on time. That helps protect your supplier relationships and keeps your supply chain moving. A reliable process also helps you avoid delays and gives you a clearer view of cash flow, so you can make better financial decisions. If your business handles cross-border payments and transactions, having an efficient process matters even more.

B2B vs B2C payments: What's the difference?

Both involve moving money, but in practice, B2B and B2C payments work quite differently. Knowing the difference helps you put the right processes in place for your business.

The key takeaway? B2B payments need more planning, more coordination, and often more patience. But they also give you more room to negotiate on terms and pricing.

How does the B2B payment process work?

Payment processing is the behind-the-scenes work that moves money from your account to your supplier's. The B2B payment process usually starts 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 buying from a supplier. You'll raise a PO and send it over. The supplier then processes the PO, delivers the goods or services, and issues an invoice. After that, you'll check the invoice details, such as the items received, the amount due, the payment methods, and the due date, and then you'll start the payment using the method you've agreed on. Once you've made the payment, the funds move from your merchant account to the supplier's account.

Payment methods

To give the best possible payment experience, you need to understand the different payment methods available, and that's just as true 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 Services) and CHAPS (Clearing House Automated Payment System) in the UK

• Cheques

• Cash

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

Common B2B payment terms

Payment terms are the agreed "due date" on your invoice. You can think of them a bit like a credit card billing cycle, except they're negotiated between the buyer and supplier. The most common terms you'll see are:

• Net 30: Payment due within 30 days of the invoice date

• Net 60: Payment due within 60 days

• Net 90: Payment due within 90 days

If you agree to Net 30 terms with a supplier, you have 30 days from the invoice date to pay. Some suppliers also offer early payment discounts. For example, "2/10 Net 30" means you get a 2% discount if you pay within 10 days, otherwise the full amount is due in 30 days. These terms matter for cash flow. Longer terms give you more flexibility, but suppliers may prefer faster payment in exchange for better pricing.

Understanding the B2B payment cycle

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

• The buyer issues a PO to their supplier. The PO sets out the details of the purchase and can include things like the products or services being bought, the prices, delivery timelines, and payment terms. It's usually reviewed first by the buyer's finance team to make sure it fits company policies and budgets.

• The supplier reviews the PO. They confirm that they can fulfil the order.

• 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 invoices after they've delivered the goods.

• The supplier delivers the goods or services to the buyer. The buyer checks the quality and quantity to make sure everything matches the PO, and gives feedback to the supplier on any changes or corrections if needed.

• The buyer approves the invoice for payment. Once the buyer is happy with the goods or services, they send the supplier's invoice to their accounts payable (AP) department for approval. The AP department checks that the invoice matches the original PO and what was actually received. This is one way B2B payments differ from B2C payments, because B2B invoices often need multiple approvals.

• The buyer pays the supplier using 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 method can depend on the supplier's location, the size and currency of the transaction, the payment terms, and how quickly the payment needs to arrive.

• The supplier sends a payment confirmation to the buyer. Both businesses then record the transaction in their financial records, a process known as 'invoice reconciliation'.

• Both businesses keep accurate records of their transactions. That includes copies of POs, invoices, payment records, and other correspondence with the businesses they've transacted with. Record keeping is needed for legal and tax requirements, and it also helps with cash flow management, regulatory compliance, and fraud detection.

Now that the payment cycle is clear, let's look at the methods businesses use to move money.

The most popular B2B payment methods in 2026

Lots of companies still use traditional methods like wire transfers, cheques, and cash. But more businesses are moving to simpler, more scalable digital options to manage supplier and vendor payments.

Here's a breakdown of the eight most popular B2B payment methods in 2026.

Online payment platforms

More businesses are choosing online payment platforms to run faster, more secure financial operations. Digital payment solutions are quick, easy to use, and can include useful features like cost-saving multi-currency capabilities and real-time payment tracking. They also connect easily with your existing accounting software, which can make accounting, reconciliation processes, and financial analysis much simpler.

Electronic fund transfers (ACH, BACS, CHAPS, SEPA)

ACH payments are a type of Electronic Funds Transfer (EFT) in the United States. They work a bit like a digital cheque, letting US businesses send and receive funds directly from one account to another. Tens of trillions of dollars move through ACH payments across the US every year. In 2025 alone, the ACH Network processed US$93 trillion. They can also be cost-effective, with the median cost at US$0.29 per transaction, compared to a wire transfer, which is around US$25 on average. One thing to keep in mind is that ACH payments can only be made between two US accounts, and some banks may set transfer limits.

Other similar EFT methods include BACS and CHAPS payments in the UK and SEPA in the European Union. SEPA in particular is a fast and cost-effective option for B2B payments within the Eurozone, and it often settles within one business day at minimal cost.

Credit and debit cards

Many businesses use credit or debit cards from networks like Visa, Mastercard, and Amex to make company B2B payments. Credit and debit cards are easy to use, payments are processed quickly, and they can earn reward points or cashback.

But there is a trade-off. When businesses use these cards, they can face higher transaction fees than they would with online payment platforms. Credit card processing fees usually range from 2.87% to 4.35% of each transaction, with merchant service provider fees on top. For large B2B payments, those fees can add up over time.

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 to specific employees or other card owners. Corporate credit cards are available to large, established companies with substantial revenue, and they work well for getting around red tape on small, everyday purchases.

For large B2B payments, online payment platforms are still a strong option, because corporate cards can come with 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.

Wire transfers

A wire transfer is an electronic transfer of funds through a network run by banks and transfer service agencies around the world. Funds 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 let businesses send large amounts of money, like B2B payments, securely and quickly, usually within two business days. For international transfers, SWIFT fees can build up, typically ranging from US$15 to US$50 per transaction. Digital payment platforms are often faster than wire transfers and can avoid these flat fees, especially if you're making frequent payments.

Cheques

You might be surprised, but many businesses still make B2B payments using physical paper cheques. The upside is that paper cheques are always traceable and give you a tangible record. The downside is that they can hurt cash flow and vendor relationships because of long processing times, sometimes as long as 14 days. They're also the payment method most exposed to fraud. In the 2024 AFP Payments Fraud and Control Survey Report, 65% of respondents said their organisations had experienced cheque fraud. Cash is still used for small, in-person, day-to-day transactions, but it doesn't offer the tracking and security benefits of digital methods.

Trade credit and B2B buy now, pay later

Trade credit is when a supplier lets you buy now and pay later, usually on agreed terms like Net 30 or Net 60. Think of it like a tab at your local pub: the supplier trusts you to settle up later. That helps buyers manage cash flow, and it also helps suppliers win more business by offering flexible terms.

B2B buy now, pay later (BNPL) is a newer version of the same idea, where a third-party provider finances the transaction. The supplier gets paid straight away, while the buyer repays the BNPL provider over time. That moves the risk of non-payment away from the supplier, although it usually comes with fees or interest charges for the buyer.

Comparing B2B payment methods

With so many options, the right choice depends on your transaction size, how fast you need funds to arrive, and whether you're paying domestically or across borders. But whichever method you choose, you'll probably run into some common challenges.

Challenges of B2B payments

There are several challenges you may face when choosing, adopting, or putting in place a new B2B payment system.

• Unpredictable costs, like exchange rates and cross-border fees. These can complicate international B2B payments, leading to cash flow issues and financial uncertainty. When costs move around, it becomes harder to build accurate budgets and financial forecasts for your business. A platform with competitive, transparent exchange rates can help you manage costs when you're paying in multiple currencies.

• Integration with existing software. Choose a B2B payment platform that connects easily with your accounting software, so you can avoid problems like manual reconciliation and payment delays.

• Reluctance from partners and employees. Your customers and suppliers may be cautious about using a new platform to pay you, maybe because of security or privacy concerns. They may also find the new system complex or hard to understand at first, so it helps to highlight the long-term benefits of a new B2B payment system and guide them through it during the first couple of months.

• Security risks. Because B2B payments are often large, cross-border transactions, they can be a target for security breaches and fraud. Choosing a B2B payment system with strong security measures, tokenization, and real-time fraud protection will help keep your payments secure.

• Regulatory hurdles. Every country has its own rules for sending and receiving 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 to make sure they're compliant with international standards. So it's worth checking that your B2B payment system is compliant in every market where it operates.

Understanding these challenges gives you a better idea of what to look for when you're comparing payment platforms.

What to look for in a B2B payment platform

Choosing the right platform matters if you want to simplify your business's transactions and improve efficiency. Here are six key features to look for when you're selecting your B2B payment platform.

• Cross-border payment support and multi-currency capabilities. Your B2B payment platform should let you pay suppliers around the world without long wait times or international fees. The best platforms offer like-for-like currency settlement, which means you can receive, hold, and spend multiple currencies like a local. For example, a vendor could pay you in a foreign currency such as USD, and you'd be able to settle those funds in USD. You could then pay suppliers from the same account in USD without paying conversion fees. Your platform should also accept funds from both your domestic and international buyers without you having to set up extra accounts around the world.

• Automation and approval workflows. Choose a platform that takes manual, time-consuming B2B payments off your finance team's plate by automating your accounts payable and paying your invoices from one platform. Your platform should let you customise approval workflows and notifications, so you stay in control of spend while also managing and tracking business expenses in one place.

• Integration with existing accounting and ERP software. If your B2B payment platform connects with your existing accounting software, like Xero, QuickBooks, or NetSuite, your finance team can save hours of manual work every week. You'll be able to speed up your B2B payment cycle, automate payments, and categorise expenses directly to your chart of accounts.

• Security and compliance. Security should be one of your top priorities when you're reviewing B2B payment platforms. Choose a platform that meets 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 Organisation Controls)

  The company running the platform should also be 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. Your chosen platform should also have security features like tokenization, encryption, 3DS secure authentication, and payment fraud detection. 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.

• Competitive and transparent FX rates. If you pay suppliers in multiple currencies, look for a platform that offers market-leading exchange rates and shows you exactly what you'll pay before you confirm a transfer. Hidden fees and poor rates can quietly eat into your margins over time.

• Local payment rails for faster settlement. The best platforms use local payment networks instead of routing everything through SWIFT. That means faster settlement times and lower fees, especially for high-volume payments.

What are the benefits of a B2B payment platform?

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

Simpler financial operations and accounting

Using an online payment platform makes it easier to track payments and transactions. That helps you keep accurate records and cuts down on manual reconciliation.

As more B2B payment platforms offer real-time reporting, you get better visibility into your cash flow, which helps you manage budgets more efficiently and make better financial decisions. Simple, fast integrations with your existing accounting software can get you up and running even sooner, while reducing errors and making more accurate financial reporting possible.

More cost-effective B2B payments

Traditional payment methods, like wire transfers or cheques, can come with higher processing costs and more manual handling, which means more hours from your team. If you use a fintech to make B2B payments instead, you can cut your transaction costs significantly, especially when you're dealing with high volumes of payments and cross-border transfers.

The best B2B payment platforms let your vendors and suppliers pay you as though you were a local in their currency, and let you settle the payment like-for-like in your account. In other words, if your platform offers multi-currency accounts, a vendor can 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 paying conversion fees.

Stronger security

Security should be a top priority for your business transactions, and online payment platforms offer encryption, tokenization, and multi-factor authentication to protect sensitive financial data. Your chosen online payment platform should comply with high international security standards, such as PCI DSS, SOC 1, and SOC 2, as well as any local regulatory requirements. These features help keep transactions safe and secure, protecting you against fraud and data breaches.

The future of B2B payments

B2B payment trends are shifting fast, and staying ahead of them could open up some significant opportunities. Here's where things are heading.

Embedded payments and deeper software integration

Embedded B2B payments are payments you can make without leaving a seller's or supplier's website or app. For example, if you pay for goods or services directly in an app or on a website without being redirected to a third-party provider, that's an embedded B2B payment. You can offer your customers a similar smooth checkout experience by natively embedding and white-labelling a payment API into your software.

At the same time, online payment services and systems will keep pushing for easy integration with existing business systems, such as ERP and accounting software. A well-integrated financial ecosystem can help reduce errors, and better visibility and data accuracy can put you in a stronger position to make more strategic financial decisions.

Make and receive B2B payments with Airwallex

If you need to both send and receive B2B payments globally, most platforms only handle one side. We handle both. With one platform, you can make and receive B2B payments quickly and cost-effectively, and you can also manage multi-currency balances. That means you can operate like a local business, no matter where your suppliers and vendors are based.

With Airwallex, you can open a Business Account that lets you 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 Corporate Cards, there are 0% foreign transaction fees. Taken together, these features can lead to real cost savings by bringing your financial operations into one place and cutting fees and conversion costs significantly.

When it's time for vendors to pay you, they can pay in their preferred currency and payment method, whether that's by credit card, bank transfer, or digital wallet. You can then settle those payments like-for-like, which means you can receive and settle funds in the same currency. Then, when you need to, you can make transfers from those same balances with no currency conversions needed.

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

We've built our B2B payment infrastructure to grow with your business. So instead of dealing with bank queues and paperwork, you can tap into our global coverage across currencies and countries to make and receive payments the right way.

Frequently Asked Questions (FAQs)

What is an example of a B2B payment?

A common example is a retailer paying a wholesaler for inventory by bank transfer or through an online payment platform. Other examples include a SaaS company paying for cloud hosting services, a manufacturer paying a raw materials supplier, or a marketing agency paying a freelance designer for project work.

What's the difference between B2B and B2C payments?

B2B payments are transactions between two businesses, while B2C payments are from a business to an individual consumer. B2B payments are usually larger, involve longer payment terms, like Net 30 or Net 60, and often need multiple approvals before payment is released.

How can businesses speed up B2B payments?

The fastest way to speed up B2B payments is to use an online payment platform that supports real-time or same-day transfers. Automating your approval workflows, moving away from cheques, and using local payment rails for international transfers can also cut payment times significantly.

What are common B2B payment terms?

The most common B2B payment terms are Net 30, Net 60, and Net 90, which give the buyer 30, 60, or 90 days to pay after receiving an invoice. Some suppliers offer early payment discounts. For example, "2/10 Net 30" means a 2% discount if you pay within 10 days.