Small Businesses Are Quietly Rewriting Cross-Border Payment Rules

Jessica Albright · 2026-09-28

Cross-border payments used to be a big-company game. Not anymore. Today, small businesses routinely buy inventory from overseas, pay international contractors, sell through global marketplaces, and serve customers around the world. But here's the catch: because these payment systems grew out of commercial banking, sending and receiving money across borders can still be expensive and messy for smaller companies. A new report from Javelin Strategy & Research, *The Small Business Cross-Border Payments Opportunity*, takes a close look at how small businesses are navigating this shift. Ian Benton, Senior Analyst of Digital Banking at Javelin, says they're exploring a wide range of options—from traditional international wire transfers to PayPal, dedicated platforms like Wise and Airwallex, and even remittance services like MoneyGram and Western Union. ### The Lay of the Land The need for these services is growing fast. According to Javelin, 26% of U.S.-based small businesses now use cross-border payments. That number jumps with business size: more than half of companies with over $2.5 million in revenue are either sending or receiving payments across borders. Still, international payments make up only a sliver of most businesses' overall payment activity. Among those that do send or receive money internationally, only about a fifth of their transactions are cross-border. "Even among those that are using cross-border payments, it's still a limited capability," Benton said. "That will increase as a capability becomes cheaper and people become more comfortable distributing their workforce and their contractors overseas. But today it's still kind of a smaller portion." ### The Commercial Banking Option Banks have long served this market through international wire transfers, but these can be expensive and hard to navigate for businesses without expertise in foreign exchange or managing multiple accounts. "If you're using cross-border payments, you're typically going to use commercial banking," Benton said. "That's usually one of the best indicators that you need to move up into that next tier, in which case you're a little bit more comfortable using international wires. You typically have a CFO or internal financial expertise, somebody who actually knows how to manage that stuff. Typically they don't offer it to a ton of small business platforms because people are using them typically have been larger businesses." For businesses sending only a few international payments each month, an international wire through their bank may be sufficient. These firms might be better served by banks that offer cross-border services to individuals and smaller businesses, rather than requiring them to become commercial banking customers. Fintechs like Wise, Revolut, and PayPal have stepped into the gap, offering smaller enterprises a more customer-friendly way to send money overseas. They've gained traction by making cross-border payments more accessible, transparent, and, in many cases, less expensive. But cost isn't the only appeal. Perhaps the biggest advantage is transparency. These platforms can show customers when their money is expected to arrive, exactly how much the transaction will cost, and what exchange rate will be applied. > "Transparency is the new currency in cross-border payments." — Ian Benton, Javelin Strategy & Research ### Sending vs. Receiving For most businesses, receiving international payments is relatively straightforward. Many already use e-commerce platforms with international payments built in, while others may invoice customers through services like PayPal and receive funds through the same platform. In other words, the ability to accept payments is often embedded in systems they're already using. Sending money across borders is a different story. B2B payments can be more complicated, and businesses often turn to international wires to pay overseas suppliers. But as fintechs continue to innovate, the gap between sending and receiving is narrowing. So what's the takeaway? If you're a small business owner, you don't have to settle for expensive, opaque cross-border payments. Explore your options, compare fees, and choose the service that fits your needs. The global marketplace is your oyster—don't let payment hurdles hold you back.