As the global marketplace continues to expand, more businesses are taking advantage of cross-border trade opportunities. In 2025, cross-border payments moved an estimated US$208 trillion in total transaction volume. Sending and receiving payments across borders can be a complex and challenging process, with many regulatory requirements, fees, and risks to navigate.
Despite these challenges, cross-border payments are important for businesses that want to expand into new markets, reach new customers, and diversify their revenue streams. And there are solutions to these challenges. With the right payment methods and strategies, businesses can reduce costs, improve cash flow, and accelerate growth.
Below, we'll explore the types of cross-border payments available, the benefits and downsides of cross-border payments for businesses, and the process for sending and receiving cross-border payments.
What's in this article?
- What are cross-border payments?
- Cross-border payment methods
- How cross-border payments move between countries
- What are cross-border payments used for?
- Benefits and drawbacks of cross-border payments
- How to send cross-border payments
- How Stripe Payments can help
What are cross-border payments?
Cross-border payments are financial transactions that occur between parties located in different countries. These payments involve the transfer of funds or assets from one country to another, typically through banks or other financial institutions. Individuals or businesses can initiate these transactions, which often involve currency conversions, through a variety of payment methods.
Types of cross-border payments
Cross-border payments are generally divided into two main categories: wholesale cross-border payments and retail cross-border payments.
Wholesale payments typically involve high-value transactions between financial institutions, corporations, and other institutional participants. They often support activities such as trade, investment, and interbank settlement.
Retail cross-border payments involve lower-value transactions made by individuals and businesses, including international remittances, e-commerce purchases, and payments for goods and services.
Cross-border payment methods
Cross-border payment methods encompass a variety of transfer mechanisms, including international bank transfers, digital wallets, and global payment gateways. For any given transaction, the ideal choice of payment method depends on factors such as the amount of money being transferred, the speed of the transaction, the currencies involved, and the fees associated with each method. Businesses and individuals who need to initiate a cross-border payment should consider the different methods available and choose the one that best suits their specific needs.
Several common methods of cross-border payments include:
Electronic transfers: An electronic transfer is an electronic transfer of funds between two different banks or financial institutions. In different parts of the world, electronic transfers are transmitted using wire networks that service different geographic areas. This type of payment is common for large transactions – amount limits vary based on location and network – and can be sent in different currencies.
Credit card transactions: Credit cards are widely accepted around the world, and businesses can accept payments from customers in different currencies. Credit card transactions may be subject to currency conversion fees and other charges.
Electronic fund transfers (EFTs): Electronic fund transfers are commonly referred to as electronic bank transfers, e-cheques, or electronic payments. These transfers allow individuals and businesses to send and receive money electronically quickly and securely. This type of payment is typically faster and more convenient than other forms of cross-border payments.
International money orders: International money orders are a paper-based payment method that can be sent through the mail or transmitted electronically using a third-party provider. They can be purchased at banks and other financial institutions and are typically used for smaller transaction amounts.
Online payments platforms: Online payments platforms allow individuals and businesses to send and receive money internationally using their mobile devices or computers. These platforms often offer competitive exchange rates and low fees. Many credit card networks also offer online cross-border payments.
Cryptocurrencies: Cryptocurrencies such as Bitcoin and Ethereum are decentralised digital currencies that can be used to make cross-border payments. As of 2026, around 40% of retailers accept cryptocurrency at checkout, and 85% believe crypto payments will become more common. These payments can be processed quickly and securely, but crypto comes with some drawbacks due to volatility in the cryptocurrency market.
How cross-border payments move between countries
The cross-border process flow generally begins when the payer initiates a payment in the originating country, after which the transaction is processed, cleared, and converted into the recipient's currency before being settled and credited to the recipient. Depending on the countries, currencies, payment networks, and intermediaries involved, a cross-border payment flow can vary greatly in terms of speed, cost, and complexity.
|
Method
|
Speed
|
Typical cost
|
Typical limits
|
Key risk
|
|---|---|---|---|---|
| Electronic transfer (SWIFT) | 1–4 working days, same-day on SWIFT gpi | US$70–US$115 total (send fee US$25–50 + FX markup 1–3% + intermediary fees US$10–100) | High – often US$100k+, set by bank | Fees stack across correspondent banks |
| Credit card | Settlement takes 1–3 working days | 1–3% foreign transaction fee, network fee (Visa 1–1.4%, Mastercard 0.6–1%), DCC conversion fees up to 12% | Card credit limit (consumer-scale) | Stacked fees can exceed 5% on a single purchase |
| EFT/ACH | 1–5 working days (avg 2–3) | Under US$10/transaction, often under US$5 | Bank-set, usually business-scale (US$25k–100k/day) | Slower, and not all banks support it internationally |
| International money order | Days (mail) or instant if issued in person | ~US$1–1.50 per order (Western Union), USPS discontinued its international version in Oct. 2025 | Capped at US$1,000 per order | Paper-based, easy to lose or delay, low limits mean many orders needed for larger sums |
| Cryptocurrency | Minutes (Bitcoin 10–60 min., Lightning Network subsecond, stablecoins on Tron 1–3 min) |
Near-zero to ~US$1.50 (Lightning |
No inherent limit, exchange/platform KYC caps apply
|
Price volatility on nonstablecoin assets
|
|
What are cross-border payments used for?
Cross-border payments enable the flow of money between countries for a wide range of purposes, and are an important component of the global economy. Uses for cross-border payments include:
International trade
Businesses use cross-border payments for settling imports and exports and receiving payments from customers in other countries.Travel and tourism
Travellers use cross-border payments to book flights and accommodation, and pay for in-country expenses.Remittances
Many individuals use cross-border payments to send money to family or friends living overseas.Investment
Investors use these types of payments to purchase international assets and collect returns.International charitable donations
Individuals and organisations use cross-border payments to contribute to non-profits or relief initiatives abroad.
Benefits and drawbacks of cross-border payments
Cross-border payments can create significant opportunities for businesses to expand into new markets and grow their revenue – all with more ease, efficiency, and speed. However, these payments also come with risks and challenges that businesses must manage carefully.
Here are some of the main advantages and disadvantages:
Benefits:
- Access to global markets: Cross-border payments allow businesses to expand into international markets and reach new customers, suppliers, and partners.
- Increased revenue and growth opportunities: By selling goods and services internationally, businesses can increase their revenue and tap into new growth opportunities.
- Diversification: Cross-border payments enable businesses to diversify their customer base, supplier base, and investment portfolio, reducing their reliance on domestic markets.
- Cost savings: Some cross-border payment methods can be more cost-effective than others, allowing businesses to save money on transaction fees, currency exchange rates, and other costs associated with international trade.
- Flexibility: Cross-border payments offer businesses flexibility in terms of payment methods, allowing them to choose the most convenient and cost-effective method for their specific needs.
Drawbacks:
- Regulatory requirements: Cross-border payments are subject to various regulatory requirements and compliance obligations, which can be complex and time-consuming to navigate.
- Currency risk: Cross-border payments are subject to fluctuations in exchange rates, which can impact the value of transactions and affect businesses' cash flow
- Fees and charges: Some cross-border payment methods can be expensive, and fees and charges vary depending on the country and payment method
- Fraud and security risks: Cross-border payments can be vulnerable to fraud and security risks, such as cyber attacks, identity theft, and payment scams
- Operational complexity: Cross-border payments can be more complex and time-consuming to process than domestic payments, requiring businesses to have the necessary resources and expertise to manage them effectively
|
Benefits |
Drawbacks |
|
Access to global markets: Reach new customers, suppliers, and partners internationally |
Regulatory requirements: Complex, time-consuming compliance obligations |
|
Increased revenue and growth: New markets to sell into |
Currency risk: Exchange rate fluctuations affect transaction value and cash flow |
|
Diversification: Spreads customer, supplier, and investment base beyond domestic markets |
Fees and charges: Costs vary widely by country and payment method |
|
Cost savings: Some payment methods cut transaction and FX costs |
Fraud and security risks: Exposure to cyberattacks, identity theft, payment scams |
|
Flexibility: Choice of payment method to fit cost and convenience needs |
Operational complexity: Requires more resources and expertise than domestic payments |
How to send cross-border payments
Sending cross-border payments requires careful planning and attention to detail. The process will run more smoothly with a payment provider that is familiar with your business, your financial accounts, and the international parties you frequently transact with. You should choose the right payment method for your needs and carefully verify all of the transaction details to ensure that your payment is processed quickly, accurately, and securely.
The process of sending cross-border payments can vary, depending on where you're sending funds to and from and which method of transfer you use, but here are the basic steps:
Choose a payment method
Wire transfers, credit cards, EFTs, money orders, online platforms, and cryptocurrencies each carry different advantages and drawbacks. Pick the one that fits your speed, cost, and reliability needs.Check the exchange rate
Rates vary by country and payment method. For payments in another currency, confirm both sides of the exchange rate upfront – both the cost to you and the amount of money the recipient will actually receive.Provide the recipient's details
You will typically need the recipient's name, address, bank account number, and routing number, and possibly the payment's purpose or a reference number. Requirements vary by institution and transfer network.Verify the payment
Double-check all details before sending. Errors cause delays, and some payment methods, such as money orders, are irreversible.Send the payment
Delivery time depends on the method and countries involved.Track the payment
Use the tracking or reference number from your provider to confirm receipt.
How Stripe Payments can help
Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.
Stripe Payments can help you:
- Optimise your checkout experience: Create a frictionless customer experience and save engineering time with prebuilt payment UIs, access to 125+ payment methods, and Link, Stripe's consumer network.
- Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
- Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
- Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
- Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
Learn more about how Stripe Payments can power your online and in-person payments or get started today.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.