What Are Cross-Border Payments? A Beginner’s Guide for Businesses

Singapore’s e-Commerce sector continues to gain momentum, with the South-east Asian digital economy expected to exceed US$300 billion (S$390 billion) by the end of 2025 according to a recent study by Temasek, Google and Bain & Company. 

As cross-border trade becomes increasingly embedded in the region’s growth, businesses must be prepared to manage overseas transactions efficiently. Whether paying global suppliers, working with international logistics partners, or hiring talent across multiple markets, your ability to make seamless cross-border payments directly affects your competitiveness. 

A stable, efficient payment infrastructure helps businesses unlock new markets, strengthen supply chains, and collaborate confidently with partners around the world. With SUNRATE’s extensive global payment network and intelligent transaction routing, businesses can reduce operational friction, optimise costs, and accelerate their expansion overseas. 

What Are Cross-Border Payments? 

Cross-border payments are transactions where the sender and recipient reside in different countries, often involving currency conversion. These payments support countless business scenarios — from supplier payments and contractor remuneration to marketplace settlements and treasury management. 

Traditional processes for cross-border transfers were not built for today’s digital-first, high-volume environment. International bank transfers may require several days to complete, with delays often caused by intermediary banks, time zones, and compliance checks. Manual processes add further strain, especially for businesses handling multiple recurring payments across multiple markets. 

This complexity has led many businesses to adopt modern fintech solutions. SUNRATE’s global payment capabilities support 130+ currencies and allow businesses to send funds across 190+ countries worldwide, with many payments completed in as fast as one business day — reducing both cost and operational burden. 

Key Cross-Border Payment Methods 

Selecting the right payment channel is essential for achieving efficiency, cost savings, and reliability in global transactions. Below are the most common methods and their core characteristics. 

Digital Wallets 

Digital wallets have transformed global payments by offering fast, secure, and cost-effective solutions. Businesses can manage balances in multiple currencies, send and receive funds internationally, and easily withdraw to local bank accounts. 

Cross-Border ACH Payments 

ACH-style payments present a budget-friendly option in regions where local clearing networks support cross-border transfers. Although they may be slower than digital wallet transactions, they are dependable for scheduled and repetitive payments. 

Bank Wire Transfers 

Wire transfers remain a long-established option, especially for high-value international transactions. While trusted and secure, they tend to come with higher fees and lengthy processing times, making them less desirable for small or frequent payments. 

Traditional Payment Gateways 

Mainstream gateways like Stripe and PayPal — commonly used by individual consumers — also serve businesses seeking flexible solutions. Their familiarity and reliability are advantages, but cross-border fees can be relatively high. 

Cryptocurrency Payments 

Cryptocurrencies such as Bitcoin provide decentralised alternatives for specific business use cases. Although transaction costs are generally low, the fluctuating value of digital assets can pose significant risk.

Common Challenges with Cross-Border Payments 

Cross-border transactions remain essential for global businesses, yet they still come with notable hurdles. High fees from banks and intermediaries — along with FX mark-ups — can significantly drive up costs. Businesses also face exposure to currency volatility, which affects margins and makes forecasting difficult. On top of that, traditional bank transfers are often slow, taking days to clear and disrupting operational cash flow. 

For a broader look at the evolving landscape and what businesses can expect, read more in our earlier article on cross-border payment prospects and obstacles. 

Why Businesses Use Cross-Border Payment Platforms 

Modern cross-border payment platforms offer substantial advantages over traditional banking methods — particularly for B2B businesses and e-commerce merchants. Key benefits include: 

• Faster processing times, improving cash flow and operational agility 
Payments are completed in hours or days instead of weeks, helping businesses manage working capital more effectively. 
• Lower overall costs, with more transparent fee structures

Reduced intermediary and hidden fees make international transactions more predictable and budget-friendly.

• Support for multiple currencies, enabling seamless international expansion

Businesses can pay and receive funds in local currencies, avoiding unnecessary conversions and FX costs.Support for multiple currencies, enabling seamless international expansion Businesses can pay and receive funds in local currencies, avoiding unnecessary conversions and FX costs.

• Automated compliance and easier reporting, reducing administrative workload

Built-in regulatory checks and reporting tools simplify adherence to cross-border payment regulations.

• Greater visibility and tracking, giving businesses clarity on transaction status

Real-time dashboards allow companies to monitor payments from initiation to completion, reducing uncertainty.

• Scalable infrastructure, ideal for handling high volumes of recurring global payments

Platforms can manage growing transaction volumes efficiently, supporting expansion into new markets without extra overhead.

Simplify Your Cross-Border Payments with SUNRATE 

Cross-border payments power today’s globally connected economy. But managing them shouldn’t be complicated. With SUNRATE, businesses gain access to a modern, intelligent, and scalable payment infrastructure that enables them to: 

1. Facilitate Cross-Border Payments in Multiple Currencies 

Managing payments across different markets often comes with challenges such as exchange rate volatility, conversion delays, and additional FX fees. SUNRATE’s Multi-Currency Commercial Cards provide a streamlined way for globally operating businesses to navigate these complexities. 

Our cards support direct settlement in 16 currencies (as of December 2025), including USD, EUR, GBP, HKD and CNH. This allows you to pay in the currency you need—without having to convert funds first—helping you minimise FX costs and reduce exposure to fluctuating exchange rates. 

By enabling faster settlement and improved cash flow, SUNRATE’s multi-currency capability ensures smoother cross-border transactions and better compatibility with global e-commerce platforms and partners, including those that require local currency payments or settlement arrangements. 

2. Leverage FX Features That Help Reduce Currency Exchange Costs

FX volatility can quickly increase the cost of international payments, especially when rates shift between agreeing to a transaction and settling it. SUNRATE’s advanced FX tools help businesses stay protected and cost-efficient. 

With Scheduled Transfers, businesses can lock in today’s exchange rate for future payments, reducing the risk of unexpected FX movements and improving cost predictability. Combined with SUNRATE’s fast, cost-effective payments in 130+ currencies across 180+ countries, these features give you greater control over your global payment spending. 

3. Consolidate and Automate Treasury Operations 

Managing international payments across multiple platforms can be slow and error-prone. SUNRATE integrates FX analysis, risk management, and transaction execution in one platform. Businesses can execute spot trades, forwards, or NDFs and track payments in real time, simplifying cross-border cash flow management and improving operational efficiency. 

To get started and partner with a solutions provider that can help your business optimise payments and help you scale both locally and globally, open a SUNRATE account today or contact our sales team.