B2B payments guide: Solutions, processes & how to choose

B2B payments are transactions made from one business to another for goods or services. Unlike customer (B2C) payments, which involve individuals buying directly from a company, B2B payments form the backbone of business operations, from purchasing supplies to outsourcing services.

These payments occur locally, such as paying a vendor or distributor, or internationally, such as paying an overseas manufacturer or client. They are larger and more structured, often involving contracts, purchase orders, invoices, and approval steps before the money is sent.

For instance, a SaaS company in Sydney that works with clients across the Asia-Pacific uses one B2B payment platform to pay developers in India, a design team in Melbourne, and a cloud provider in Singapore. By managing everything from invoices to payments in one place, it avoids hidden FX fees and keeps cash flow steady. Efficient B2B payments like this help businesses stay organised, build trust, and maintain predictable expenses.

Types of B2B payment solutions

Wondering what the different types of B2B payment solutions are? Check out our comprehensive list below to discover all you need to know.

1. Digital payments

Digital payments refer to electronic fund transfers made through online systems such as PayID or the New Payments Platform (NPP). These transactions occur in real time, making them faster and more transparent than paper-based methods.

They suit small to medium-sized businesses that want to streamline vendor payments and improve cash flow, such as accounting firms, marketing agencies, and e-commerce retailers. Digital payments are also ideal for companies managing frequent local or interstate supplier transactions.

2. Wire transfers (international bank transfers)

Wire transfers enable funds to move electronically between banks across borders. Traditional methods use the SWIFT network, while modern systems route payments through local rails to improve speed and reduce conversion costs.

They suit Australian exporters, importers, and professional service firms that pay overseas vendors or receive funds from global clients. Manufacturing, logistics, and consulting businesses often rely on wire transfers for high-value or international transactions.

3. Bank transfers (domestic)

Bank transfers move money securely between Australian accounts. The NPP allows near-instant payments, PayID simplifies account details, and BPAY supports invoice and bill settlements with unique references.

They suit construction companies, wholesalers, and utilities that make regular supplier or contractor payments within Australia. This method also works well for payroll and rent, offering a reliable and low-cost way to settle recurring expenses.

4. Direct debit

Direct debit allows an authorised supplier or service provider to withdraw funds from a customer’s account at agreed intervals. It automates collections and reduces manual effort for both payer and receiver.

It suits subscription-based businesses, telecommunications providers, and SaaS platforms that charge clients on a fixed schedule. It’s also effective for landlords, maintenance services, and energy companies that need consistent, on-time payments.

5. Corporate cards

Corporate cards are company-issued payment tools that employees or departments use for approved business expenses. Every purchase gets recorded and sorted automatically, which makes tracking and reconciling spending a lot easier.

These cards work well for startups, creative agencies, and consulting firms. They suit any team that handles regular travel, project costs, or marketing buys. They’re also a solid choice for companies that want tighter control over budgets and better visibility into how departments spend money.

6. Digital wallets

Digital wallets keep payment details safe and let businesses send or receive money through mobile or online platforms. Transactions happen instantly, so you’re not stuck waiting for banks to open. While “digital payments” means any transfer done online, digital wallets are the secure layer that stores payment info and simplifies the process of sending money.

They’re a great fit for online retailers, tech startups, and service firms that pay remote staff or freelancers. If you’ve got international clients, digital wallets help you move money fast and skip the usual hold-ups with middleman banks.

7. Credit and debit cards

Credit and debit cards process payments electronically through card networks and give you instant confirmation. They offer a bit of short-term credit and make expense tracking simple.

These cards work especially well for professional services firms, healthcare clinics, and small retail chains, and anyone who needs the convenience and flexibility to pay suppliers or clients quickly. If fast transactions and clear records matter to your business, this is a good option.

8. Purchase orders and eInvoicing

With eInvoicing, invoices go straight from one accounting system to another using standard formats like Peppol. You do not have to do manual data entry, plus you get more accurate records and faster approvals.

This setup suits government contractors, wholesale distributors, and big companies that deal with lots of suppliers and tons of invoices. eInvoicing helps you stay compliant and speeds up B2B payments.

9. Cheques

Cheques are paper-based instruments that authorise banks to transfer funds between businesses. They provide a clear record but involve longer clearing times and higher processing effort.

They still suit small family-run businesses, local councils, or associations that follow traditional payment practices. However, cheque use continues to decline in Australia as real-time and digital payment options become standard.

10. Cash

Cash is the most direct payment method, offering instant settlement without intermediaries. It remains convenient for face-to-face transactions.

It suits microbusinesses, small traders, and local service providers like cafés, florists, and repair shops. For larger organisations, cash is rarely practical due to security concerns and limited traceability.

How do B2B payment solutions work?

B2B payment solutions follow a step-by-step process that keeps transactions organised, transparent, and compliant. Each step is crucial for helping businesses manage cash flow, maintain supplier trust, and meet financial reporting and ATO requirements.

1. Collect essential supplier information like ABN, registered office, and bank account.
2. Establish specific terms of payment, such as Net 30 or Net 60, and retain contracts or purchase orders to avoid missteps or fraud.
3. After the delivery of goods or services, the supplier provides an invoice with product details, quantity, GST, and total.
4. Invoices can come via email, by an eInvoicing network such as Peppol, or directly uploaded to the accounts payable system.
5. The accounts staff inspect the invoice and cross-check with the purchase order or delivery note to ensure accuracy in goods, prices, and GST. This validation step prevents duplicate or unauthorised payments.
6. Once validated, the invoice is processed through an approval stage where one or more managers approve.
7. All Australian B2B payment systems log who authorized each payment, with a clear audit trail.
8. After authorization, the finance department schedules the payment according to the agreed terms.
9. Payments can run on autopilot or be batched on a weekly or monthly basis, with choices such as EFT, BPAY, direct debit, or corporate card.
10. On the payment date, the platform transfers funds to the supplier's account securely, updates the status of the payment, and notifies both parties.
11. The system reconciles automatically every payment with its invoice, updates the ledger in real-time, and ensures accuracy in records.
12. Finance teams produce reports for total spend, pending invoices, and payment schedules for audit support, GST filing, and forecasting purposes.
13. The majority of B2B payment systems used in Australia come with integration into accounting tools such as Xero and MYOB for transparent dashboards and improved tracking.

Factors to consider when choosing a B2B payment solution

The right B2B payment solution keeps business transactions smooth, secure, and compliant. Here’s what to look for before choosing one:

• Payment methods: Make sure it supports multiple ways to pay, such as bank transfers, cards, direct debits, and digital wallets. That way, you can easily match how your suppliers prefer to get paid.
• International transfers: If you work with overseas vendors, choose a platform that handles global payments without big fees. Look for transparent costs, mid-market exchange rates, and local account details in major currencies like AUD, USD, GBP, and EUR.
• Accounting integration: Go for something that integrates with Xero, MYOB, or QuickBooks so your books update automatically, without manual reconciliation.
• eInvoicing and GST compliance: Pick a system that supports Peppol eInvoicing and ATO-compliant formats. It’ll make invoice approvals and tax time so much easier.
• Security and compliance: Don’t compromise here. Your provider should meet PCI DSS, AML, and KYC standards and include strong encryption and fraud detection.
• User control: Go for a tool that lets you set roles, approval limits, and spending permissions. It keeps things organised and avoids accidental (or unauthorised) payments.
• Reporting and analytics: Real-time dashboards are a game-changer. You’ll instantly see where your money’s going, what’s pending, and how your cash flow looks.
• Transparent pricing: Always check for hidden fees or FX markups on mid-market rate. A good platform tells you upfront what you’ll pay, no surprises later.
• Automation and scalability: Choose something that automates invoice matching and grows as your business expands.
• Local support: When issues come up, you’ll want real people who understand the local system. Aussie-based support can save hours of frustration.

Wise Business - For global B2B payments

B2B payments don’t always run smoothly when it comes to transactions across borders. High transfer fees, slow international transactions, manual reconciliations, and scattered accounts can hold businesses back. For teams managing multiple suppliers or currencies, fluctuating exchange rates and complex compliance rules only make things trickier, often creating delays and unpredictable cash flow.

Wise Business cuts through that complexity. It brings everything into one transparent, easy-to-use platform built for global payments. With faster transfers, real-time visibility, and transparent fees, businesses can move money across borders confidently while staying in control of every transaction.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.