How to pay suppliers in Australian Dollars

Key takeaways

• You’ve got multiple options for paying Australian suppliers, but there’s a huge amount of variance between them. Some are far slower and more expensive than others.

• Traditional banking lacks the agility needed, while local payment methods are unreliable for cross-border payments. Multi-currency platforms are the best option for speed and cost.

• Airwallex lets you open an Australian bank account without having to leave the UK, so you can hold, receive, and send AUD payments like a local – low-cost, rapid, and reliable.

Despite our geographical distance, the UK and Australia have a special relationship. A little under 1% of our total imports come from Australia.¹ That only tells some of the story, though. 23% of British emigrants live in Australia, more than any other country.²

There’s a strong connection between our two countries and plenty of reasons to do business across our borders.

If you’re working with an Australian business, figuring out how to pay them is a big hurdle. In this article, we’re going to explain the primary ways you can pay your Australian suppliers, their pros and cons, and some top tips to save your stress, time, and money.

Five key ways to pay suppliers in Australian dollars (AUD)

There are three main methods your business can use to send AUD payments to its Australian suppliers. These aren’t the only options, but they’re the ones you’re most likely to encounter.

It’s possible that an Australian supplier could bill in a third-party currency, like USD or CNY. In that case, the points made in the table above are exactly the same – just with another currency in place of AUD.

Check our guide to paying overseas suppliers for a broader look at your options and potential challenges.

Using Airwallex to pay suppliers in Australian dollars

Airwallex is one of your options for cross-border payments outside of traditional banking. With our Global Account, you can get Australian bank account details without the complexity or cost of setting up an Australian entity. Once you’ve used our low-cost FX to fund your account, sending payments to your Australian suppliers is as quick, easy, and affordable as if they were in the UK.

With currency conversion, it’s all on your terms. You have access to mid-market exchange rates (with a 0.5% markup for AUD) and powerful FX controls like forward contracts and stop-limit orders. Move your money – whether GBP, AUD, or any of the other 20+ currencies you can hold – at the perfect time. No forced exchanges, no expensive fees, no problem.

Plus, you can integrate your multi-currency account with your accounting system, so tracking and reconciling international payments is no issue.

Paying Australian suppliers from the UK: what to know

Depending on the payment method you choose, you can expect different timelines and parties involved in the process.

Some of the common reasons for delayed or failed payments to Australia include:

• Manual data entry errors (e.g. wrong account number).

• Using SWIFT payments, the slowest option listed in this article.

• Sending high-value payments, triggering additional checks from either of your banks.

You should also be aware of Australia’s national holidays³, as these can interrupt normal payment schedules.

Why suppliers request payment in Australian dollars

The simplest reason a supplier will bill in Australian dollars is because that’s their local currency. The vast majority of their bills, salaries, and taxes are going to be paid in AUD, so they need AUD in their bank account.

There are instances where an Australian supplier might want to bill in another currency, but invoicing in AUD makes sense for them for several reasons.

• When a supplier charges in their local currency, they pass any FX risks onto you.

• If a supplier bills every customer in one currency, it makes bookkeeping and reconciliation easier.

• If an Australian business charges every customer in AUD, it’s far simpler for them to scope projects and standardise pricing.

Bank details required for AUD supplier payments

Your money won’t travel far unless you have the right payment information for your Australian supplier. Again, this will vary based on your choice of payment method. It’s also worth noting that cross-border B2B payments have different requirements to P2P payments.

International transfer (SWIFT)

To send a SWIFT payment, you need a specific set of information.

• All of your personal information, including name, address, and bank identification.

• Your supplier’s registered business name.

• Your supplier’s business address.

• The recipient bank’s name and address.

• The recipient bank’s SWIFT code.

• Your supplier’s account number and Bank State Branch (BSB) code, which is roughly equivalent to a sort code or routing number.

Local account transfer

Paying a supplier directly in AUD requires less information than a SWIFT payment. You’ll need:

• The name on your supplier’s bank account.

• Your supplier’s account number.

• Your supplier’s BSB code.

• A payment reference.

New Payments Platform (e.g. PayID or Osko)

In terms of the information required, NPP is the simplest method for paying an Australian supplier.

All you need is their unique ID, which they should share with you on their invoice or in your contract.

Cross-border payments platform

The requirements will vary depending on the type of platform you choose.

With a multi-currency platform like Airwallex, you’ll need their local account details (as listed above).

With a peer-to-peer international transfer platform, you can use the local account details as described or their unique ID on that platform.

Debit or credit card

If your supplier uses a payment gateway to collect payments, all you’ll need to pay them is your card details:

• Long card number.

• Card expiry date.

• Card Verification Code (CVC).

FX costs and exchange rate considerations

Timing has a big effect on your currency conversion costs. If you were paying a supplier’s A$20,000 invoice in 2025, it would have cost you roughly £430 more on 1 April than it would on 6 April. That’s purely down to movement in the exchange rate (2.0567 vs. 2.1516).⁴

Bear in mind, that’s the market rate – not the rate you’d pay with the big banks. They’d add a markup to the rate that would cost you even more.

You can’t time the markets and you can’t control what the banks charge you – so what can you do? There are a few solutions that we believe in:

• Forward FX contracts: Locking in an exchange rate to use for a transfer in the future.

• Stop-limit orders: Setting rules to automatically convert your currency, triggered by the exchange rate reaching a certain high or low.

• Holding an AUD balance: Funding your Australian bank account, using a multi-currency account provider like Airwallex, at a time of your choosing and holding the balance to use for future payments.

Common mistakes when paying suppliers in AUD

As is often the case, many of the most common mistakes in paying Australian suppliers seem obvious. The problem is, it’s easy to miss smaller bumps in the road when you’re looking ahead to the horizon.

• Double- and triple-check you have your supplier’s account details right, especially their BSB.

• Always use a clear and accurate payment reference – either detailing the services or following specific instructions from your supplier’s invoice.

• Make sure you’re paying in the most-affordable way – that includes currency choice and choice of payment method.

• An invoice’s due date is based on your supplier’s time zone, not yours. If you pay an invoice on the final night it’s due, it’s already overdue in Australia and you could face late payment fees.

They all seem obvious until you fall foul of one. A little bit of process management and diligence on your side will mean you avoid these common mistakes.

The optimal way to pay your Australian suppliers

Goods and services flow between Australia and the UK like there isn’t a 10,000 mile gap between us. If we want our businesses to continue these successful relationships, it’s vital that the money involved moves quickly, securely, and efficiently.

When you use a platform like Airwallex, you choose the modern solution to this problem. Rather than relying on slow processes with traditional international banking, your money can move with the kind of agility the rest of your business has.

FAQs

Do Australian suppliers require payment in AUD?

It’ll depend on the supplier, but it’s likely that they’ll prefer to be paid in Australian dollars. You could try negotiating a payment in GBP (or a third currency), but there are no guarantees.

What is a BSB code and when is it required?

A Bank State Branch (BSB) code is an identifier for Australian bank accounts. BSBs identify the specific bank and branch that houses your recipient’s account, ensuring the right person receives your payment. It’s much like a sort code in the UK or a routing number in the USA.

How long do AUD payments from the UK usually take?

The timeline for a GBP to AUD payment varies by payment method. A SWIFT payment can take several days or even a week. Using a multi-currency platform like Airwallex, you can send Australian dollars almost instantly, as your payment will be made using local rails.

Is it cheaper to pay suppliers in AUD or GBP?

If you can manage currency conversion, it’s usually cheaper to pay invoices in the currency it’s billed in. A platform like Airwallex lets you open and fund an AUD account at a low cost, whereas a high-street bank will charge you hidden fees and margins for FX and transfers.

Can UK businesses hold and pay AUD without an Australian bank account?

If your bank or card issuer allows for foreign currency payments, then you can pay in AUD. Holding AUD is more complicated. Most bank accounts only let you hold GBP, but it’s possible to get Australian bank account details in the UK by using a multi-currency platform like Airwallex. 

Sources and references

1. https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/datasets/uktotaltradeallcountriesseasonallyadjusted

2. https://www.un.org/development/desa/pd/content/international-migrant-stock

3. https://www.australia.com/en-gb/facts-and-planning/when-to-go/australian-public-holidays.html

4. https://www.exchangerates.org.uk/GBP-AUD-spot-exchange-rates-history-2025.html