Guide on B2B payments in New Zealand

With over 600,000 businesses trading in New Zealand,¹ there’s plenty of opportunity to procure goods and services from locally based brands. And, once you master the art of overseas payments, a whole new world of possibilities awaits.

Today, we’re covering everything the Kiwi SMB should know about B2B payments, from definitions to trends, processes, methods, and challenges. Through fine-tuning procedures, you could minimise processing times and mitigate fees.

What is a B2B payment?

A B2B payment refers to money sent between two businesses for goods or services. Common examples include paying suppliers, wholesalers, software subscriptions, or contractors.

B2B payments differ from business-to-consumer (B2C) payments, not only for the parties involved. While B2C transactions are usually small and settled instantly at checkout, B2B payments tend to be larger, more formal, and more complex.

Learning the lingo: Common B2B payment terms

Businesses use certain terminology when making B2B payments.

• Net 30: Full payment is due 30 days from invoice issuance. It’s the baseline term among Kiwi SMBs.
• Net 60 / 90: Payment 60 or 90 days from invoicing. More common for larger, slow-moving contracts between bigger corporations or government bodies.
• End of Month (EOM): Payment due at the end of the current month, or a set number of days beyond that, such as EOM + 15.
• Payment in Advance (PIA): Full payment before goods are shipped or services are provided. Typically used for newer clients with unproven payment records.
• Cash on Delivery (COD): The buyer settles the bill immediately upon receiving the goods.
• Milestones/instalments: Payments are split into percentage-based portions linked to specific milestones. Common for project-based work, especially in the creative and construction industries.
• Early payment discounts: The buyer gets a small discount for paying early. For example, ‘2/10 Net 30’ means a 2% discount for paying in 10 days instead of 30 days.
• Mid-market exchange rate: The midpoint between the buy and sell prices of two currencies on the global market. Also known as the ‘real’ or ‘interbank’ rate, the mid-market exchange rate can help businesses reduce transaction expenses.

B2B payment trends in 2026

In 2026, shifting regulations and advancing technologies could evolve the B2B payment landscape in New Zealand and beyond.

• On 1 December 2025, the Commerce Commission capped interchange fees on most New Zealand Visa and Mastercard transactions. Reducing fees from 0.8% to 0.3% could increase B2B card adoption rates.²
• AI could further infiltrate fintech APIs, helping businesses reduce admin expenses across a range of tasks. Potential automations include invoice batch payments, recurring transfers, reconciliations, expense reporting, currency conversions, standing orders, and payroll.
• Moreover, machine learning technology may present a range of new cybersecurity threats – and provide innovative new solutions.

Domestic vs international B2B payments

Domestic B2B payments occur within a unified, single-country banking and legal framework, using one currency. Most incur low flat fees or no fees and settle within the same day, or sometimes even just hours. Domestic bank transfers use New Zealand’s Bulk Electronic Clearing System (BECS), which covers direct debits, automatic payments, bill payments, and direct credits.³

International B2B payments involve multiple currencies, jurisdictions, and financial systems, making them more costly and complex. Standard overseas bank transfers in New Zealand use the SWIFT network, which routes money between multiple banks or intermediaries, each charging separate fees.

How do B2B payments work?

The precise process may vary between businesses, industries, and payment types.

1. Purchase Order: The buyer sends a formal PO to the supplier outlining the required goods or services, including quantities, pricing, and timeframes.
2. PO review: The supplier reviews the PO to confirm they can fulfil the order, and informs the buyer accordingly.
3. Delivery: The supplier delivers the goods or services within the specified timeframe, and the buyer reviews them to ensure compliance.
4. Invoicing: The supplier sends the buyer an invoice outlining the total amount due, payment methods, and terms. Some suppliers invoice before delivery.
5. Approvals: The buyer submits the invoice to the accounts payable (AP) team, which verifies that it matches the original PO before approving payment.
6. Payment: AP pays the invoice using their preferred payment method, such as a BECS bank transfer or New Zealand business debit card.
7. Reconciliation: The buyer sends a payment confirmation notice to the supplier. Both businesses reconcile the transaction by recording it within their financial records.

In New Zealand, businesses must maintain records of all cash and digital sales and purchases for 7 years in English or Maori.⁴ Meticulous record-keeping may also help manage cash flow and minimise fraud.

Common B2B payment methods for New Zealand businesses

Kiwis can choose from a range of methods when paying other businesses, each with distinct pros and cons.

Multi-currency accounts

A multi-currency business account allows Kiwi SMBs to hold, receive, and pay in multiple foreign currencies from a single centralized platform. Instead of juggling overseas bank accounts or paying steep double-conversion fees, companies can manage cross-border B2B transactions as if they were operating locally.

Domestic transfers (BECs)

Standard BECs bank transfers are fast and free, making them the go-to option for domestic B2B payments in New Zealand. Same-bank transfers settle instantly, while interbank transfers generally take under an hour when done before 10 pm; otherwise, first thing in the morning. The buyer pays through an NZ business bank portal or app.

POLi

POLi is a unique Kiwi option that lets the buyer pay directly from their online banking account. When making online payments, the buyer selects POLi at checkout, selects their bank, and logs in with their credentials to pay.⁵

Although primarily used for B2C transactions, plenty of Kiwi businesses also use POLi for B2B payments.

International bank transfers (SWIFT)

Standard SWIFT bank transfers see funds move across borders from the sending bank to the receiving bank, sometimes via an intermediary bank, all of which charge separate fees. Flat fees generally range from $20 to $60 per transfer, plus a 1-3% exchange rate markup. Processing may take 3-5 business days.

Debit and credit cards

Some business debit and credit cards offer attractive cashback and rewards, albeit with higher fees that can eat into profit margins, especially on high-value invoices. Also, steep interest rates may apply to businesses that fail to repay balances on time.

Typical B2B card processing fees in New Zealand range from 1.5% to 3.5%, with an additional per-transaction charge of $0.05 to $0.30. International card fees often add an extra 1% on top.

Electronic invoicing (eInvoicing)

In New Zealand, eInvoicing uses the common Peppol standard to exchange invoice information between buyers and suppliers, even if their financial systems differ. The network automatically generates invoices, validates NZ Business Numbers (NZBN), and reconciles purchases, reducing manual processing and improving accuracy.⁶

Digital Wallets

Digital wallets, such as Google Pay and Apple Pay, help keep card details safe through encryption, tokenisation, and biometric authentication. Businesses can use them to make in-person or online B2B payments, often at similar or identical rates to debit or credit cards.

Corporate cards

Larger enterprises sometimes use corporate cards for day-to-day work-related expenses. Corporate cards connect to an expense account tied to an entity rather than a person. Purchases are automatically recorded and sorted in conjunction with accounting software.

Direct debit

Direct debit is a recurring payment method in which the supplier withdraws funds from the buyer’s business bank account at an agreed-upon schedule, such as weekly, monthly, quarterly, or annually. Direct debits work through BECs, require written authorisation, and are common for ongoing services such as software subscriptions and utilities.

Cash & cheques

Physical paper-based formats like cheques and cash are becoming increasingly uncommon in New Zealand, where digital payments dominate. Nonetheless, some businesses still use them.

Challenges of international B2B payments

Paying offshore suppliers is fraught with difficulties. Some of the biggest concerns include:

• Slow processing times: With multiple banks and intermediaries working in different time zones, international payments can take 3-5 business days to settle.
• High fees: SWIFT bank transfers and credit card payments attract steep international transaction fees.
• FOREX fees: Card schemes and banks may sneak a hidden commission into the foreign exchange rate, potentially adding an extra 1-3% to the total cost.

Make and receive global B2B payments with Wise Business

Managing B2B payments efficiently is essential for growth, yet paying overseas suppliers often means navigating hidden exchange rate markups, unexpected intermediary fees, and multi-day delays through traditional SWIFT network channels. These extra overhead costs and slow turnaround times can strain cash flow and complicate relationships with international vendors.

Wise Business helps solve these cross-border payment challenges by using a local payment network to transfer funds across borders quickly and transparently.

A Wise Business account allows users to 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 40 NZD

Sign up for the Wise Business account! 🚀

This is not financial or investment advice - Wise has not taken into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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Frequently asked questions

1. What is the difference between B2B and B2C payments?
B2B payments tend to be larger and have longer payment terms than B2C payments, which are typically made and approved instantly.

2. How long do international B2B payments take to process in NZ?
SWIFT bank transfers can take 3-5 business days to finalise. Fintech alternatives like Wise Business usually settle within 1 business day.

3. Are B2B payments safe from fraud?
Like any payment type, B2B payments are susceptible to fraud. Businesses must take necessary steps to reduce their risk. Although fees are higher, card schemes like Visa and Mastercard may provide better fraud protection than other payment types.

4. Can I automate my B2B payment processes?
In New Zealand, some businesses automate B2B payments by using eInvoicing, which automatically transmits invoices between businesses, even those using different financial systems.

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Sources

1. IBISWORLD: Number of businesses NZ
2. EFTPOS: Fee changes mean for your business
3. Payments NZ: BECS
4. IRD: Record keeping
5. POLi: What is POLi?
6. eInvoicing: What is eInvoicing?