UK Firms Crack Down on Cross-Border Payment Costs

UK businesses are finding ways to reduce cross-border transaction costs by exploring alternative payment methods. A Cardiff homeware exporter and a Swansea software firm are among those using multi-currency accounts, fintech tools, and digital assets to minimize losses on international transactions.

The current banking system was designed for large institutions moving large sums of money, but smaller firms face higher costs, slower speeds, and reduced transparency. According to the Bank of England, cross-border payments can cost up to 10 times more than domestic ones.

Regulators are pushing for change, with the G20's cross-border payments roadmap aiming to bring average retail payment costs down to 1% by 2027 and require full upfront cost disclosure. Welsh exporters, who account for £11 billion in goods shipped to European buyers last year, are particularly affected.

Firms are turning to tools like multi-currency accounts and fintech rails that show real exchange rates and flat fees upfront. Digital assets, such as cryptocurrencies, are also being used for corridors where traditional banking is slow or expensive.